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Lowe's (LOW) Aims Greater Efficiency with 2,400 Job Cuts
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Home improvement retailer, Lowe's Companies, Inc. (LOW - Free Report) is all set to layoff nearly 2,400 full-time workers, per media report. This action is conducted by the company in order to improve its overall efficiency to cater its customers’ needs in a better way.
Per sources, the job cut will be maximum at the company’s stores along with other layoffs at its customer support centers, distribution units as well as vice presidents at Lowe’s corporate office. The lay-off employees will be provided with outplacement services and a severance pay by the company.
In Oct 2016, the company had cut nearly 95 workers from its information technology unit, out of which 60 layoffs were done at its headquarters and rest of the eliminations took place at North Carolina and Texas outlets, per the source. This was done in order to enhance its tech capabilities and processes.
These lay-off actions are taken by management to increase its store productivity and competence, as Lowe’s faces intense competition from the world’s largest home improvement retailer, The Home Depot, Inc. (HD - Free Report) and other home supply retailers.
Bottom Line
We observed that Lowe’s shares have yielded a return of nearly 4.2% in the past one year and has underperformed the Zacks categorized Building Products-Retail/Wholesale industry’s gain of 8.6% in the said time frame.
However, this Zacks Rank #3 (Hold) company has recently outlined its long-term strategic plans, which focus on improving profitability, developing abilities to cater the customers in a better way and enhance shareholders’ returns. Further, the company expects Return on Invested Capital to go beyond 22% by 2019. This represents an increase of over 500 bps in the next three years.
Concurrently, Lowe’s announced that Marshall A. Croom will be the company’s new Chief Financial Officer, effectively from Mar 3. He will succeed the former, Robert F. (Bob) Hull Jr, who has revealed his intentions to retire after 17 years of service.
The Children's Place, with a long-term earnings growth rate of 10.3% has surged a whopping 63.8% in the past one year.
Tilly's, with a long-term earnings growth rate of 13% has skyrocketed 117.1% in the past six months.
"Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>"
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Lowe's (LOW) Aims Greater Efficiency with 2,400 Job Cuts
Home improvement retailer, Lowe's Companies, Inc. (LOW - Free Report) is all set to layoff nearly 2,400 full-time workers, per media report. This action is conducted by the company in order to improve its overall efficiency to cater its customers’ needs in a better way.
Per sources, the job cut will be maximum at the company’s stores along with other layoffs at its customer support centers, distribution units as well as vice presidents at Lowe’s corporate office. The lay-off employees will be provided with outplacement services and a severance pay by the company.
In Oct 2016, the company had cut nearly 95 workers from its information technology unit, out of which 60 layoffs were done at its headquarters and rest of the eliminations took place at North Carolina and Texas outlets, per the source. This was done in order to enhance its tech capabilities and processes.
These lay-off actions are taken by management to increase its store productivity and competence, as Lowe’s faces intense competition from the world’s largest home improvement retailer, The Home Depot, Inc. (HD - Free Report) and other home supply retailers.
Bottom Line
We observed that Lowe’s shares have yielded a return of nearly 4.2% in the past one year and has underperformed the Zacks categorized Building Products-Retail/Wholesale industry’s gain of 8.6% in the said time frame.
However, this Zacks Rank #3 (Hold) company has recently outlined its long-term strategic plans, which focus on improving profitability, developing abilities to cater the customers in a better way and enhance shareholders’ returns. Further, the company expects Return on Invested Capital to go beyond 22% by 2019. This represents an increase of over 500 bps in the next three years.
Lowe's Companies, Inc. Price
Lowe's Companies, Inc. Price | Lowe's Companies, Inc. Quote
Concurrently, Lowe’s announced that Marshall A. Croom will be the company’s new Chief Financial Officer, effectively from Mar 3. He will succeed the former, Robert F. (Bob) Hull Jr, who has revealed his intentions to retire after 17 years of service.
Key Picks
Better-ranked stocks in the broader retail space include The Children's Place, Inc. (PLCE - Free Report) and Tilly's, Inc. (TLYS - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Children's Place, with a long-term earnings growth rate of 10.3% has surged a whopping 63.8% in the past one year.
Tilly's, with a long-term earnings growth rate of 13% has skyrocketed 117.1% in the past six months.
"Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>"