Lowe's 2011 Annual Report Download - page 5

Lowe’s Companies, Inc. 2011 Annual Report
employees to provide quick and effective advice to customers through our internal social
business network, which connects employees to the power of their fellow employees. The
result is real-time information from experts across the company and the confidence
that comes from knowing they can better serve customers. And if customers want to
visualize how to tackle a problem or project on their own, we continue adding to our
more than 600 how-to videos available on Lowes.com.
Additionally, we have introduced iPhone technology in our stores. This technology and
proprietary apps give our store employees immediate access to product and inventory
information, allowing them to answer significantly more questions from customers
in the aisle.
Expectations
As you can see, we continue to invest an abundant amount of time, attention and resources
in this transformation, which we believe is critical to improving our financial performance
and delivering increased shareholder value. These investments are part of a disciplined
capital allocation strategy. We are committed to returning excess cash to shareholders
through dividends and our share repurchase program. Our 2015 goals are to:
• Reach nearly $300 of sales per selling square foot
• Increase Earnings Before Interest and Taxes (EBIT) to 10% of sales, and
• Achieve approximately 18% Return on Invested Capital (ROIC)
This improved operating performance, along with additional borrowing flexibility from
our increased leverage target, will make more cash available to invest in high-return
initiatives and to return to you, our shareholders.
If we are true to our vision, this will be a continuous journey—we will Never Stop
Improving. We will constantly work to make Lowe’s the first choice for home improve-
ment. Our actions will lead to deeply engaged customers and employees, translating
into highly profitable relationships that will continue to grow over time.
We have an established track record of successfully managing change and transforming
our company to meet new expectations for home improvement. And, we choose to do so
again. I am proud of the flexibility and enthusiasm with which our employees have
implemented the most significant amount of change our company has seen since the
1980s when we transformed to a national big box format. I would like to thank them for
their continued hard work, flexibility, dedication and customer focus. Our employees are
our strongest asset, and a principal reason I remain optimistic about the future and our
ability to continue generating long-term value for you.
Robert A. Niblock
Chairman of the Board, President
and Chief Executive Officer
Watch Robert
Niblock’s
thoughts on
“Never Stop
Improving.”