Lowe's 2014 Annual Report Download - page 5

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We can also apply our design resources to a specific prod-
uct, such as the redesign of our Shop-Vac display, which is
also performing well. We have additional broad-based and
product-specific experiences planned for 2015.
Internationally, we are tailoring our approach so we can
successfully build scale in markets where we currently
operate. We also continue to evaluate other markets where
there may be significant potential to broaden our geographic
scope. However, we know we must take a prudent approach
when entering new markets, carefully studying the regula-
tory risks, cultures, and historical and forecasted home
improvement market growth. In all cases, we take a long-
term view to obtaining compelling returns.
We are at a great point in our company’s evolution. Our
business is sound and our brand is strong. We are one of
the largest players in the home improvement market, which
provides tremendous buying power and economies of scale.
In addition, the housing market and broader economic
recovery is strengthening just as our transformation is
gaining momentum. As a result, we continue to generate
solid cash flow and have exciting opportunities for long-term
profitable growth.
Our capital allocation priorities are straightforward and have
not changed over the last several years. We invest to main-
tain and grow our businesses. Next, we target a dividend
payout ratio of 35 percent, and our dividend has grown every
year since going public in 1961. Then, we use remaining funds
to repurchase shares.
We have been hard at work for the past few years, and I am
even more confident today that we are on the right path. I am
proud of the Lowe’s leadership team, which is committed to
advancing our strategy, and our more than 265,000 employ-
ees who work every day to help people love where they live.
Robert A. Niblock
Chairman of the Board, President
and Chief Executive Officer
LOWE’S COMPANIES, INC. 2014 ANNUAL REPORT 3
“ WE ARE DIFFERENTIATING OURSELVES THROUGH BETTER CUSTOMER
EXPERIENCES THAT MAKE US THE PROJECT AUTHORITY.”
BETTER CUSTOMER EXPERIENCES