[ad_1]
In January, Lowe's named two new board members after the hedge fund owner D.E. Shaw revealed a stake in the retailer, concerned about his performance relative to his peers. In May, Ellison was named CEO. Ellison had worked more than 12 years at Home Depot before taking his last job as CEO of J.C. Penney.
"The announcement made today by Lowe's closure of 51 underperforming stores is not surprising and could suggest the beginning of a broader initiative to improve profitability through the rationalization of real estate, "wrote Zachary Fadem Monday at Wells Fargo.
"We suspect that the 51 closed stores are losing money, are cannibalized by other Lowe's shops or are facing increased competition from Home Depot and others," added Fadem. He expects investors to get more clarity about these plans when they meet with investors on December 12.
"The number of closures announced this morning is not significant, but remains symbolic of the upgraded management team that examines all the root causes of underperformance and a feeling of ## 147 ## Renewed urgency, "Jonathan Matuszewski told Jefferies.
Lowe's stock rose less than 1% in the afternoon, giving it a market capitalization of $ 79 billion. The stock has gained about 24% in the last year.
Home Depot, meanwhile, claims a market value of $ 207 billion, but its shares have only gained 10% in the last 12 months.
Source link
