Lowe’s is closing 34 ‘underperforming’ stores in Canada
Lowe’s Companies Inc. announced Wednesday it will close 34 underperforming stores in Canada after a strategic review.
“While making decisions that impact our associates and their families is never easy, closing underperforming stores is a necessary step in our plan to ensure the long-term stability and growth of our Canadian business,” said Tony Cioffi, interim president of Lowe’s Canada in a press release.
The stores, which include Lowe’s, RONA, and Reno-Depot brands, will close in January and February of 2020.
The retailer said Wednesday it took a US$53 million non-cash pre-tax charge from initiating a strategic review of its Canadian operations during the third quarter.
Excluding items, the company earned US$1.41 in the third quarter, beating estimates of US$1.35, according to IBES data from Refinitiv.
Lowe’s raised its 2019 adjusted earnings forecast to US$5.63 to $5.70 per share, from prior expectations of US$5.45 to $5.65.
However, Lowe’s missed same-store sales expectations. They rose 2.2 per cent in the third quarter ended Nov. 1, below expectations of a 3.1 per cent increase.
“Although we still have work to do, I am confident we are on the right path to build a better Lowe’s and generate long-term profitable growth. We are committed to the Canadian market and are taking decisive action to improve the performance and profitability of our Canadian operations,” said Marvin R. Ellison, Lowe’s president and CEO, in a statement.
Below are the stores to be closed and the closing dates: