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Lowe’s distributes $55 million in quarterly bonuses to alleviate cost pressures on its hourly workers in the United States due to high inflation.
“These people have the most important roles in our business, and we deeply appreciate everything they do to provide our customers with a superior experience,” Marvin Ellison, Lowe’s president and CEO, told analysts on the hardware store’s results second quarter call on Wednesday.
| ticker | security | Last | change | change % |
|---|---|---|---|---|
| LOW | LOWES COS. INC. | 216.28 | +0.93 | +0.43% |
In addition, for a limited time, the company is giving employees a 20% discount on everyday household and cleaning items.
“We will continue to look for meaningful ways to improve the work-life balance of our associates while giving them the tools to build a career at Lowe’s,” added Joe McFarland, executive vice president of stores .
Earlier this month, the Labor Department reported that consumer prices rose 8.5% year-on-year in July and have cooled slightly, but are still near 40-year highs.
LOWE’S POSTS SURPRISE DECLINE IN COMPARABLE SALES DUE TO SLOWING DEMAND
A Lowe’s spokesperson told FOX Business that the Winning Together profit-sharing bonus will be paid to front-line business, supply chain and contact center employees on September 9th. The spokesman declined to disclose how much each employee would receive for their personal payout.
An employee helps a customer at the checkout counter of a Lowe’s store in Louisville, Kentucky on Tuesday, February 26, 2019. ((Photographer: Luke Sharrett/Bloomberg via Getty Images) / Getty Images)
According to the company’s website, Lowe’s currently employs more than 300,000 people.
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The move comes after Lowe’s reported net income of $3 billion, in line with last year’s results, and diluted earnings per share of $4.67 versus $4.25 per share in the second quarter of 2021. Total revenue for the second quarter was $27.5 billion. compared to $27.6 billion in the second quarter of 2021.
Although total comparable sales declined 0.3%, the company’s home improvement business posted comparable sales growth of 0.2% in the second quarter. DIY sales, which came in lower than expected in the second quarter, were impacted by the shortened spring and lower demand in certain consumer goods categories, partially offset by a 13% increase in sales from Pro customers.
A Lowe’s store in Livermore, California, United States, on Wednesday, May 11, 2022. (Photographer: David Paul Morris/Bloomberg via Getty Images) ((Photographer: David Paul Morris/Bloomberg via Getty Images) / Getty Images)
Looking ahead, the company forecasts that its full-year 2022 revenues will be at the low end of its guidance range of approximately $97 billion to $99 billion. Comparable revenue growth is expected to come in at the low end of the company’s guidance of a 1% decline to a 1% increase for the year.
Meanwhile, the company expects its diluted earnings per share for the year to be at the high end of its guidance range of $13.10 to $13.60 and its operating margin at the high end of its 12.8% to 13% range for the full year will lie.
At press time, Lowe’s shares are down about 15% year-to-date.