Lowe's 1999 Annual Report Download - page 2

Financial Highlights
In thousands, except per share data
Change
from 1998 Fiscal 1999%Fiscal 1998%
Sales + 19% $15,905,595% $13,330,540%
Gross Margin + 73 bps* 27.54% 26.81%
Pretax Earnings + 38% $1,087,495* * $787,366%
Net Earnings + 38% $689,795* * $500,374%
Earnings per Share:
Basic + 33% $1.80* * $1.35%
Diluted + 34% $1.79* * $1.34%
Cash Dividends per Share + 8% $ .13 % $ .12%
* Basis points * * Excludes the one-time charge for costs related to the merger with Eagle Hardware & Garden, Inc.
Contents
Lett er to Shareholders ........................................................... 1
Improving Home Improvement ............................................. 4
Board of Directors................................................................ 12
Lowe’s Executive Management ........................................... 13
Disclosure Regarding Forward-Looking Stat ements............ 13
Independent Auditors’ Report ............................................. 14
Management’s Discussion and Analysis............................... 15
Financial Stat ements............................................................ 19
Financial History ................................................................... 34
Invest or Inf ormat ion .................................... Inside Back Cover
Company Profile
Lowe’s Companies, Inc. is the world’s second largest home improvement retailer competing in a highly fragmented $300 billion
industry. We serve more than four million do-it-yourself and commercial business customers weekly through more than 576 stores in
37 states. At the beginning of 2000, our retail square footage totaled approximately 57 million square feet. Headquartered in
Wilkesboro, NC, the 54-year-old company employs more than 80,000 people.
Lowe’s has been implementing an aggressive store expansion strategy which has transformed Lowe’s from a chain of small stores
into a chain of destination home improvement warehouses. Having built our first 100,000 square foot store in 1994, Lowe’s current
prototype has a 121,000 square foot sales floor with a lawn and garden center comprising approximately 35,000 additional square
feet. In April 1998, Lowe’s announced a major expansion into the western United States, with plans to build in excess of 100 new
stores in certain western markets over the next three to four years. The first of the western stores opened in December 1999. In
November 1998, Lowe’s entered into a merger agreement with Eagle Hardware & Garden, Inc. (Eagle), an operator of 36 home
improvement centers in the western United States. The acquisition of Eagle was completed on April 2, 1999. Lowe’s 2000 expansion
plan calls for opening 95 stores (which includes relocating 17 older, smaller format stores).
Lowe’s gives back to the communities it serves through programs and volunteer involvement. Lowe’s contributes regularly to
nonprofit organizations in towns and cities throughout Lowe’s territory. Through the “ Lowe’s Heroes” programs and Lowe’s Home
Safety Council, the Company provides civic groups help with public safety projects and shares important home safety and fire
prevention information with neighborhoods across the country.
Lowe’s has been a publicly held company since October 10, 1961. Our stock is listed on the New York Stock Exchange, the Pacific
Stock Exchange and the London Stock Exchange with shares trading under the ticker symbol LOW.