Marvin Ellison has wasted no time in shaking things up at Lowe’s.
In his first week on the job, Lowe’s CEO Marvin Ellison unveiled a major restructuring of executive staff. And in the company’s first quarterly report under Ellison, Lowe’s unveiled a bombshell decision to close all 99 Orchard Supply Hardware stores.
So what else is new at Mooresville, N.C.-based Lowe’s? There’s a lot. The company reported second quarter revenue in excess of $20 billion – another first. Here are some of the other highlights from Lowe’s first quarterly report and earnings call under Ellison’s watch.
For the pro. The company adjusted upward its estimate of the share of its total sales to pros – now roughly 30%. (Home Depot’s similar estimate is 45%.) “Pro is a huge opportunity for us,” said Ellison. The company say continued strength in lumber and building materials in the second quarter, and it hopes to build on that with new introductions for the pro. Among them: Lowe’s announced an introduction of Mapei to all stores, described as the leader in tile setting materials. Also added Zoeller, described as the leading brand in pumps, and a retail exclusive for Lowe’s.
Growth metrics. The company’s U.S. comps in the second quarter were positive 5.3%. That’s the highest in more than two years. Also, average ticket increased 4.5%, while transactions grew 0.6%.
Category winners. As the late spring pushed sales into the second quarter, Lowe’s lawn and garden category saw double-digit comps. Seasonal and outdoor living produced comps in the high-single digits. Cooling products and…