Analysts are expecting Lowe’s Companies (LOW) to post revenue of $71.3 billion in 2018, which represents a rise of 3.9% from $$68.6 billion in 2017. Revenue growth is expected to be driven by the addition of new stores, positive SSSG (same-store sales growth), and incremental sales from the acquisitions of Maintenance Supply Headquarters and Central Wholesalers.
Lowe’s management is expecting revenue to rise 4% in 2018 with SSSG at 3.5%. It plans to add ten new stores during the year.
To drive sales, Lowe’s is focusing on integrating its analytical capabilities to enhance its marketing management platform, transforming its supply chain to serve its customers better, and providing compelling product experiences through strategic brands and differentiated in-store experiences.
Lowe’s will start the operation of its new direct fulfillment center in 3Q18, which will allow it to expand its online product offerings and provide faster parcel shipping. The company has also been investing in expanding its delivery capacity to meet increased demands. Lowe’s has strengthened its partnership with Sherwin-Williams by making Sherwin-Williams an exclusive national supplier of both interior and exterior paints for its US stores. Lowe’s expects to enhance its MRO (maintenance, repair, and operations) by optimizing its Maintenance Supply Headquarters business through the launch of a streamlined product catalog in the spring.