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5 Things Lowe’s Wants You to Know | host.madison.com

Sluggish profitability
Gross margin for the quarter was 33.73% of sales, a decrease of 68 basis points from the fourth quarter of last year. We continue to take competitive actions, which were partially offset by the benefits from value improvement as well as early results from pricing optimization efforts. — CFO Marshall Croom

Executives weren’t thrilled with the reduced profitability that Lowe’s posted during the quarter. They had to cut prices in many instances to stay competitive, and gross margin also slipped due to increased sales of appliances. On the other hand, they were encouraged by early results from new pricing and promotion tools that helped apply price cuts more efficiently.

Plan of attack
We are actively working to improve conversion and gross margin while better managing inventory. — COO Richard Maltsbarger

Image source: Getty Images.

Executives outlined a comprehensive strategic plan aimed at delivering faster, more profitable growth. It will include changes like increased employee training, a shift toward digital advertising, new investments in the e-commerce infrastructure, and a host of exclusive partnerships with brands like Sherwin Williams. “We are moving forward with urgency to improve our results,” Niblock said.

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5 Things Lowe’s Wants You to Know | Business Markets and Stocks News | host.madison.com.