The last closures of Lowe's stores are not the first in Marvin Ellison's brief term as CEO, and may not be the last.

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The announcement made Monday by Lowe's Cos. Inc. to close 51 "underperforming" stores, including 20 in the United States, is Marvin Ellison's second round of short-term closures as General Manager of the Home Renovation Retailer, and analysts say may not be the last.

In August, the company announced that it would close the 99 Orchard Supply Hardware stores located in California, Oregon and Florida, as well as its distribution facilities, by the end of fiscal year 2018 .

Ellison said the company needed to simplify for better results at the Q2 earnings conference.

Lily: These Lowe stores will close in the next three months

"[M]Experience has taught me that a streamlined organizational structure is the first step in creating operational excellence and enabling faster decision making, "he said, according to a FactSet transcript. "[W]We decided to leave Orchard Supply Hardware to allow us to focus on our core business of home improvement. "

Ellison became CEO effective July 2, 2018. Prior to joining the company, he was managing director of distressed retailer J.C. Penney Co. Inc.

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This company, whose recovery is continuing, closed 141 stores in fiscal 2017.

According to Bill Fahy, Credit Manager at Moody's, it is normal for a new CEO to review the store portfolio.

"Anyone who is doing a strategic review of the company, is something you expect from him," he said.

In addition, Fahy notes that the majority of stores that close their doors are less than 15 km from another Lowe's.

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location.

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"Consumers always have a Lowe's store to go to," he said. "If suddenly I lose a store, I should maybe go to the competition."

With only 20 stores closed in the US, Fahy said, "It's not so many." The rest of the closures will take place in Canada. Lowe's said it would go into details in the next publication of the results on November 20th. Fahy is waiting for more details on the company's strategy at Investor Day on December 12th.

Wells Fargo analysts said the closures are "not surprising" and that "others could be imminent".

"[It] could suggest the beginning of a broader initiative to improve profitability through the rationalization of real estate, "wrote analysts Zachary Fadem.

Lowe's beat earnings expectations in the second quarter, but did not live up to the previous two.

Home Depot Inc.

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Lowe's greater competition has exceeded earnings expectations over the last 15 quarters.

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Home Depot sales reached $ 100.9 billion in the prior year. Lowe's generated $ 68.6 billion in revenue.

Ellison worked at Home Depot for a dozen years, moving to the management level, before leaving for J.C. Penney.

"[W]We believe that all options remain available for a new CEO within Marvin Ellison, who has so far shown a propensity to act quickly (following the realignment of management and the decision to close its 99 Orchard stores Supply), "said Wells Fargo.

"We continue to consider Lowe's at the beginning of a multi-year turnaround, and while short-term improvement expectations are low, we see significant opportunities from Pro [professional] initiatives, inventory rationalization and store / process improvements. "

Wells Fargo estimates that Lowe's shares outperform with a target price of $ 125.

Lowe's shares have increased 4.5% since the beginning of the year, outperforming the S & P 500 index

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, up 2.2% over the period.