Lowe's COO outlines Q2 moves
Lowe's COO Rick Damron told investors the retailer's second-quarter performance was balanced across categories as well as geographic regions.
On Wednesday, the Mooresville, N.C.-based company reported second-quarter sales gains of 10.3% to $15.7 billion.
"We achieved very strong second-quarter growth in products needed to improve and maintain the yard, tools and outdoor power equipment, and lawn and garden were among our best-performing product categories in the quarter," Damron said.
The strong growth also appeared in kitchens and appliances, which received a boost from the new LG line, which rolled out in the first quarter and gained traction in the second, he said. The category also benefited from a first-place ranking from JD Power and Associates in appliance retail customer satisfaction for a fourth consecutive year, he said.
The core categories of hardware, paint and fashion electrical hit mid-single-digit comps in the quarter, but also showed "solid growth and gross margin rates," Damron said.
Damron pointed to the example of power tools sandpaper as an example of value improvement. Lowe's sorted out its offering into a clear progression and eliminated price-point and design duplications. WIth Gator Grip at opening price points and the Shopsmith line on the premium side, the new mix improved productivity, he said.
At the end of the second quarter, Lowe's had completed resets representing approximately 70% of the store.