Lowe's 2012 Annual Report Download - page 5

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organization will use customer insights to design experiences that serve customers seamlessly
across selling channels. The Operations organization will deliver the customer experience in an
efficient and effective manner. While the two organizations have distinct responsibilities, they
will collaborate intensely. Yet the clear delineation of roles and decision-making authority
ensures clearer accountability for designing and executing profitable customer experiences.
CAPITAL ALLOCATION STRATEGY AND FINANCIAL EXPECTATIONS
Our strong financial position and cash flow afford us the opportunity to first, make strategic
investments in our core business and in other opportunities to serve developing home
improvement markets; second, to pay dividends; and third, to repurchase shares. Based on
these priorities and expected improvement in operating performance, our 2015 goals are to:
• Reach nearly $300 of sales per selling square foot
• Increase Earnings Before Interest and Taxes to approximately 10% of sales, and
• Achieve approximately 17% Return on Invested Capital
We are excited about the progress we are making toward building better home improvement
experiences. It is a journey, and I am proud of the efforts and resilience Lowe’s associates
have displayed as we adjust along the way. We remain committed to building better home
improvement experiences by building a diverse workforce and providing great tools, processes
and training to our more than 245,000 associates. We have made significant progress on our
journey, and we expect to deliver many more improvements over the next few years. I appre-
ciate the investment you have made in our company and hope you will continue to follow
our transformation as we build better home improvement experiences and become the first
choice in home improvement.
Robert A. Niblock
Chairman of the Board, President
and Chief Executive Officer
Lowe’s Companies, Inc. 2012 Annual Report page 3
“Beyond 2013, we expect
to enhance our associates’
ability to sell seamlessly
across channels, introduce
improved project management
tools and expand fulfillment
capabilities to cultivate per-
sonal and simple connections
with customers.”
SEAMLESS
& SIMPLE