Lowe's 2014 Annual Report Download - page 3

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ROBERT A. NIBLOCK
Chairman of the Board,
President and Chief Executive Officer
LOWE’S COMPANIES, INC. 2014 ANNUAL REPORT 1
At Lowe’s, we know that home improvement fulfills an emotional need for customers
and their families. Our focus is much deeper than just selling products; customers can
get products anywhere. We help people love where they live. In fact, we’ve been doing
that since this company was founded in 1946.
We provide not only the products, but also the services,
information and advice to help people improve their homes.
And to meet customers’ evolving expectations, we are
transforming from a single-channel home improvement
retailer to an omni-channel home improvement company.
We are building on our past success and finding new ways
to serve and connect with customers, including innovative
approaches to store formats and product presentation, new
services and tools, and entry into new markets.
In 2014, we delivered another year of solid performance with
4.3 percent comps as our transformation gained momentum
and the housing market and broader economy continued
to recover.
Sales growth, combined with our focus on improving pro-
ductivity and profitability, led to an 18.0 percent increase
in net earnings, a 26.6 percent increase in earnings per
share and a 243 basis points increase in Return on Invested
Capital to 13.9 percent.
While we are pleased with the progress we made this year,
we seek to improve further. In fact, we continue to invest
in our core U.S. retail business and in adjacent home
improvement businesses that position Lowe’s favorably
within a changing home improvement landscape.
We have anchored our U.S. strategy in two key areas that
will deliver value to customers, employees and shareholders.
LETTER TO SHAREHOLDERS
Robert A. Niblock
Chairman of the Board, President and Chief Executive Officer