Lowe's to get rid of Mexico stores in further restructuring
INTERNATIONAL - Lowe’s Companies Inc said on Tuesday it was looking to shed its retail business in Mexico and certain non-core US businesses as the home improvement chain looks to compete more effectively with rivals in the United States.
The No.2 US home improvement chain also posted a smaller-than-expected rise in quarterly comparable sales. Sales at stores open for more than a year rose 1.5 percent in the third quarter, below expectations of a 2.93 percent increase, according to IBES data from Refinitiv.
Under Marvin Ellison, Lowe’s newly appointed chief executive officer, the company has been streamlining its business to compete with larger rival Home Depot and online websites by shutting underperforming stores and cutting back on slow moving inventory.
The company said it was looking at all options for its chain of 13 stores in Mexico.
The company also said it was “exiting” US contracting services business Alacrity Renovation Services and security and smart home app Iris Smart Home.
“We can now intensify our focus on the core retail business,” Ellison said in a statement.
The company cut its forecast for full-year sales growth to about 4 percent from 4.5 percent estimated previously and comparable sales to 2.5 percent from about 3 percent.