Lowe's

Lowe's Companies, Inc.

File:Lowe's logo.svg Logo used since 2016
Company type	Public
Industry	Retail (home improvement)
Founded	1 January 1921 (1921-01-01) in North Wilkesboro, North Carolina, United States
Founder	Lucius Smith Lowe
Headquarters	Mooresville, North Carolina , United States
Area served	United States, formerly Canada and Mexico
Products	Home improvement and hardware products
Number of employees	262,000 (2015)
Website	lowes.com

Lowe's Companies, Inc. () is a prominent American retailer focused on the home improvement sector. Its corporate headquarters are situated in Mooresville, North Carolina, and it operates an extensive network of stores throughout the United States. As of October 28, 2022, Lowe's and its affiliated entities oversaw 2,181 home improvement and hardware outlets across North America.

Within the U.S. market, Lowe's ranks as the second-largest hardware retailer, trailing only behind its competitor Home Depot and surpassing Menards. On a global scale, it holds the second position after Home Depot, ahead of European chains such as Leroy Merlin, B&Q, and OBI.

The company previously ventured into international markets through the Masters Home Improvement partnership in Australia until 2016, maintained operations in Mexico until 2019, and exited the Canadian market in 2023 by divesting its retail business to Sycamore Partners, which consolidated these stores under the Rona brand.

History

The inaugural Lowe's store, named Mr. L.S. Lowe’s North Wilkesboro Hardware, was established in 1921 in North Wilkesboro, North Carolina by Lucius Smith Lowe. Following his death in 1940, ownership passed to his daughter Ruth Buchan, who later transferred control to her brother James Lowe. In 1943, James partnered with his brother-in-law H. Carl Buchan.

Anticipating a surge in construction after World War II, Buchan redirected the company’s focus toward hardware and building supplies, moving away from earlier merchandise like notions and groceries. They innovated by purchasing directly from manufacturers rather than wholesalers, enabling more competitive pricing. The company opened its second location in Sparta, North Carolina in 1949.

In 1952, Buchan assumed full ownership and incorporated the business as Lowe's North Wilkesboro Hardware. Meanwhile, Jim Lowe launched the grocery chain Lowes Foods in 1954. After Buchan’s passing in 1960, an executive team led by Robert Strickland took the company public in 1961 under the name Lowe's Companies Inc. By 1962, Lowe's operated 21 stores generating $32 million in revenue and began trading on the New York Stock Exchange by 1979. Revenue expanded to over $150 million during the 1970s and approached $900 million by 1980.

Lowe's broadened its national presence significantly through acquisitions such as Renton-based Eagle Hardware & Garden in 1999. Its first international store was launched in Hamilton, Ontario, Canada. At its peak footprint, Lowe's operated more than 2,355 stores across the United States, Canada, and Mexico; however, its Mexican division was closed by 2019.

The Mexican operations included 14 outlets located in key metropolitan areas but were fully withdrawn on April 10, 2019. In 2023, Lowe's divested its Canadian retail segment headquartered in Boucherville, Quebec to Sycamore Partners for $400 million cash; these stores have since been integrated under the Rona brand.

This historical overview highlights Lowe’s strategic growth through acquisitions and international ventures while continuously adapting its business approach to meet shifting market conditions and customer preferences.

Finances

During the May to July quarter of 2020, Lowe’s reported revenues of $27.3 billion compared to $21 billion in the previous year—an increase driven largely by a 135% surge in online sales as consumer purchasing behavior evolved amid the COVID-19 pandemic.

Year	Revenue (million US$)	Net Income (million US$)	Total Assets (million US$)	Share Price (US$)	Employees	Stores
2005	36,464	2,167	21,138	24.62	162,000	1,087
2006	43,243	2,765	24,639	25.08	185,000	1,234
2007	46,927	3,105	27,767	24.40	210,000	1,385
2008	48,283	2,799	30,869	18.77	216,000	1,534
2009	48,230	2,184	32,625	17.16	229,000	1,649
2010	47,220	1,770	33,005	19.86	239,000	1,710
2011	48,815	1,993	33,699	20.67	234,000	1,749
2012	50,208	1,824	33,559	26.56	248,000	1,745
2013	50,521	1,945	32,666	39.50	245,000	1,754
2014	53,417	2,270	32,732	47.84	262,000	1,832
2015	56,223	2,682	31,721	67.59	266,000	1 ,840

Approximately three-quarters of Lowe’s revenue stems from do-it-yourself customers.

Historical data

During the fiscal year 2019 (covering 2/1/2019 to 1/31/2020), Lowe's reported a net income of US$4.281 billion alongside revenues totaling US$72.148 billion, reflecting a 1.17% growth compared to the previous year. In January 2020, the company’s shares traded above $116, with its market capitalization surpassing US$90.32 billion. That same year, Lowe's secured the No. 42 position on the Fortune 500 list and initiated a $10 billion stock repurchase plan while implementing workforce reductions.

In the fiscal year 2018, Lowe's generated earnings of US$2.314 billion and recorded revenue of US$71.309 billion, marking a 3.92% increase year-over-year. By October 2018, its shares were valued over $96, and its market capitalization exceeded US$75.8 billion. The company was ranked No. 40 on the Fortune 500 list for that year.

Headquarters

Lowe's relocated its corporate headquarters from Wilkesboro to a newly developed 350-acre campus in Mooresville, North Carolina, in 2003. This site features several office buildings centered around an atrium that includes a food court and meeting areas, all situated adjacent to a seven-acre lake.

The original Wilkesboro headquarters employed more than 2,400 individuals until its closure in 2019. Despite undergoing $10 million worth of renovations in 2011, all personnel were eventually transferred elsewhere, leaving the property vacant but still under Lowe's ownership.

Customer service centers previously located in Wilkesboro and Albuquerque were quietly shut down in 2023; current operations continue in Indianapolis and India.

On June 27, 2019, Lowe's revealed plans to invest $153 million in constructing a 23-story office tower within Charlotte’s South End district, slated for completion by 2020. This building is designed to accommodate up to 2,000 employees, including approximately 400 relocating from the main headquarters. The new facility is intended to serve as Lowe's global technology center and benefits from $54 million in state incentives tied to meeting specific performance milestones.

Environmental record

Between 2003 and 2010, Lowe's received eight consecutive Energy Star awards, including four Partner of the Year recognitions for its efforts in advancing energy efficiency. In 2010, it became the first retailer honored with the Energy Star Sustained Excellence Award for its achievements in reducing greenhouse gas emissions and promoting energy-efficient products among consumers and employees. In 2000, Lowe's pledged to source all wood products from outside rainforest regions. Nevertheless, a report published in 2006 claimed that some flooring sold by Lowe's originated from illegal logging activities in Indonesia’s Papua Province. An independent audit conducted by Armstrong Flooring—the supplier—confirmed documentation verifying legal sourcing, and Lowe's continues to assert that its wood products come exclusively from certified legal sources.

On April 17, 2014, Lowe's agreed to pay a $500,000 fine for breaching the federal Lead Renovation, Repair and Painting (RRP) Rule, which requires proper management of lead dust hazards during residential renovations. This penalty remains the largest RRP violation recorded as of 2022. The Environmental Protection Agency emphasized the settlement’s importance in safeguarding children across the United States from lead exposure risks.

On March 6, 2020, Lowe's was penalized $1.6 million for infringing California’s air quality standards, including excessive nitrogen oxide (NOx) emissions from ovens and asbestos-related violations during demolition and renovation projects.

Carbon footprint

For the year ending December 31, 2020, Lowe's disclosed total carbon dioxide equivalent (CO2e) emissions, encompassing both direct and indirect sources, amounting to 1,971 kilotonnes—a reduction of 6.5% compared to the previous year. The company has set a goal to cut its emissions by 40% by 2025 relative to its 2016 emission levels.

Lowe's yearly Total CO2e Emissions - Location-Based Scope 1 + Scope 2 (in kilotonnes)

Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020
2,690	2,408	2,422	2,403	2,109	1,971

Labor relations

In April 2019, a ruling by a National Labor Relations Board (NLRB) judge determined that Lowe's breached the National Labor Relations Act by restricting employees from discussing their wages.

To help mitigate inflationary challenges, in August 2022 Lowe's granted $55 million in bonuses to frontline employees and provided discounts on household products to staff members.

In October 2022, a group of 172 employees at a Lowe's location in New Orleans, organized under the name Lowe's Workers United and led by Felix Allen, petitioned the NLRB for a union election. Following Allen’s termination in June 2023, several unfair labor practice complaints were filed against Lowe's. The company was accused of monitoring employees, conducting interrogations, and retaliating against union advocates throughout the unionization campaign.

Advertising and sponsorships

Lowe's became the official home improvement partner of the National Football League in January 2019. In April 2024, Lowe's expanded its sports marketing efforts by forming partnerships with Major League Soccer's Inter Miami CF, internationally renowned player Lionel Messi, and the 2024 Copa América, thereby strengthening its brand visibility within the sports industry.

Racing sponsorships

Lowe's secured naming rights for Charlotte Motor Speedway in 1998, rebranding it as Lowe's Motor Speedway until the agreement expired following a one-year extension in 2010. The company served as the primary sponsor for seven-time NASCAR champion Jimmie Johnson’s No. 48 Chevrolet Camaro ZL1 and partially sponsored the No. 5 Nationwide Series vehicle, both affiliated with Hendrick Motorsports. Previously, Lowe's backed the No. 31 Chevrolet for Richard Childress Racing from 1997 to 2001 and sponsored the No. 11 Ford driven by Brett Bodine for Junior Johnson & Associates and later Brett Bodine Racing. Early sponsorship efforts included supporting the No. 2 Buick during the 1979 Winston Cup Series. After the conclusion of the 2018 season, Lowe's withdrew entirely from motorsports sponsorship.

Additionally, Lowe's supported Fernandez Racing within the American Le Mans Series and sponsored select races featuring the No. 99 Gainsco Stallings Racing Pontiac.

In partnership with designer Marianne Cusato in 2006, Lowe's developed affordable housing plans targeted at Gulf Coast communities impacted by hurricanes. This initiative introduced the Lowe's Katrina Cottage, which offered cost-effective and code-compliant residential options; however, this product line was discontinued in 2011.

Lowe's has produced numerous commercials for television and radio that frequently incorporate racing motifs. Prior to 2010, many of these advertisements featured voiceovers by actor Gene Hackman.

All-American Muslim advertising controversy

In December 2011, Lowe's pulled its advertisements from the TLC reality series All-American Muslim, attributing the decision to concerns voiced by viewers and media reports. This action triggered considerable criticism, especially from Muslim-American and Arab-American advocacy groups. The American-Arab Anti-Discrimination Committee called on its members to urge Lowe's to reverse its choice, while the Los Angeles branch of the Council on American-Islamic Relations contemplated organizing boycotts and demonstrations.

Numerous public officials, including California State Senator Ted Lieu, denounced Lowe's move as blatant religious discrimination and warned of potential legislative repercussions should the company fail to apologize and restore its advertising. Abraham Foxman of the Anti-Defamation League and Keith Ellison, the first Muslim elected to the U.S. Congress, also reproached Lowe's for siding with extremist hate organizations rather than upholding constitutional principles. Additionally, Representative John Conyers and Michigan state representative Rashida Tlaib urged Lowe's to reconsider, but the corporation maintained its position.

Associated brands

• Kobalt tools
• allen+roth

Canada

Lowe's entered the Canadian marketplace in December 2007 by launching stores in Ontario cities such as Hamilton and Brampton. The company expanded further with outlets in Toronto, East Gwillimbury, Maple (Vaughan), and ventured into western Canada beginning with Calgary. By 2018, Lowe's operated a total of 62 stores across Canada, each representing an average capital expenditure near US$20.4 million.

In February 2013, Lowe's Canada appointed Sylvain Prud'homme—previously associated with Walmart Canada and Loblaw Companies—as its chief executive officer. In May 2015, Lowe's acquired leases for 13 former Target Canada locations along with an Ontario distribution center at a cost of $151 million.

Lowe's initially sought to purchase Quebec-based hardware retailer Rona, Inc. in 2012 but encountered opposition from shareholders. The acquisition was finalized in February 2016 for CDN$3.2 billion, with Rona preserving its headquarters in Boucherville and retaining key leadership and staff under Prud'homme’s management.

In February 2020, Lowe's shuttered 34 Canadian stores that were underperforming across its Lowe's, Rona, and Réno-Dépôt brands.

In November 2022, Lowe's agreed to divest its Canadian operations to private equity firm Sycamore Partners for $400 million, with intentions to rebrand Lowe's locations under the Rona banner. The transaction was completed in February 2023. Subsequently, in July 2023, Rona announced the launch of the new Rona+ brand starting with 10 former Lowe’s outlets in Ontario.

Australia

Operating under the name Masters Home Improvement, the initial store opened in Braybrook, Victoria on August 31, 2011. It first served trade professionals before opening to general consumers. Masters was a collaborative venture between Lowe's and Woolworths designed to challenge Bunnings in the large-scale hardware retail sector, akin to the competition between Lowe's and Home Depot.

In January 2016, Woolworths declared plans to divest or close all its home improvement operations, including Masters, citing ongoing financial losses and delayed profitability targets. Woolworths reacquired Lowe's one-third ownership through its subsidiary WDR Delaware Corporation. The final Masters stores ceased operations by December 2016.

Lawsuits

Lowe's encountered multiple class-action lawsuits concerning its employee compensation framework, particularly related to "variable rate overtime," a method that decreased overtime wages as employees logged more hours in a week. These claims contended that salaried managers who worked between 40 and 50 hours weekly were not adequately compensated. This compensation approach was discontinued in early 2006.

The first lawsuit originated in October 2002 with workers from a Lowe's store in Shawnee, Kansas. By September 2005, several lawsuits from states including New York, Indiana, Pennsylvania, and Ohio had been certified as class actions. Out-of-court settlements were reached in 2006 for the claims originating in New York, Indiana, and Kansas. The Pennsylvania case involved approximately 550 employees, while the Ohio lawsuit was filed by ten former staff members.

Additional legal actions were filed by Loss Prevention Managers who argued they were improperly classified as exempt employees, which resulted in denial of overtime pay despite working at least 48 hours per week. This misclassification reportedly saved Lowe's millions annually. Settlements amounted to $2.95 million in California and $6.2 million in Texas.

In 2014, Lowe's was again subject to a comparable class-action lawsuit brought by Human Resource Managers who asserted improper exempt classification and the withholding of overtime pay despite extended work hours.