Direct Retail News Hubb
Advertisement Banner
  • Home
  • Retail News
  • Service Retail News
  • Contact
No Result
View All Result
  • Home
  • Retail News
  • Service Retail News
  • Contact
No Result
View All Result
Wellnessnewshubb
No Result
View All Result
Home Retail News

Lowe’s sells Canadian business to Sycamore Partners for $400M

admin by admin
November 6, 2022
in Retail News


This audio is auto-generated. Please let us know if you have feedback.

Dive Brief:

  • Lowe’s on Thursday announced it sold its Canadian business to private equity firm Sycamore Partners for $400 million in cash.
  • Lowe’s Canadian business, based in Boucherville, Quebec, operates 450 corporate and independent affiliate dealer stores under various banners including Rona (which Lowe’s acquired in 2016), Lowe’s Canada, Reno-Depot and Dick’s Lumber, according to a company press release.
  • The deal, set to close in early 2023, is expected to have a pre-tax non-cash impairment charge of about $2 billion on Lowe’s third quarter earnings results.

Dive Insight:

The move to sell off its Canadian retail business is to help Lowe’s simplify its business model, according to CEO Marvin Ellison.

“While this business represents approximately 7% of our full year 2022 sales outlook, it also represents approximately 60 basis points of dilution on our full year 2022 operating margin outlook,” Ellison said in a statement, adding that, “By executing this transaction, we will intensify our focus on enhancing our operating margin and [return on invested capital], taking market share in the U.S. and creating greater shareholder value.”

Lowe’s began a strategic review of its Canadian operations in the third quarter of fiscal 2019 and later that year announced actions to improve the performance and profitability of that business segment. In fiscal 2020, the company had pre-tax operating costs of $45 million related to inventory write-downs and other closing costs.

The home improvement retailer on Thursday reaffirmed its fiscal 2022 outlook, projecting total sales to be between $97 billion and $99 billion, and comparable sales to be down 1% on the low end or up 1% on the higher end. Operating margin is expected to be between 12.8% and 13%.

“We remain confident in our short and long-term outlook for the U.S. business, underscored by improved sales trends and strong profit flow-through in the third quarter, as well as our expectations for solid business performance for the remainder of 2022,” Ellison said.

Lowe’s Canadian business joins several other retailers within Sycamore’s portfolio, including Ann Taylor, Loft, Lane Bryant, Belk and Talbots.



Source link

Previous Post

Global food giant Mondelēz focuses in on employee experience for its 80,000 workforce

Next Post

Canada Goose Continues U.S. Expansion with Immersive Las Vegas Location

Next Post

Canada Goose Continues U.S. Expansion with Immersive Las Vegas Location

Recommended

GitHub Universe – 94 million happy coders and success for open source, says CEO

3 months ago

Microsoft made an early bet on ChatGPT

2 weeks ago

© 2022 Direct Retail News Hubb All rights reserved.

Use of these names, logos, and brands does not imply endorsement unless specified. By using this site, you agree to the Privacy Policy and Terms & Conditions.

Navigate Site

  • Home
  • Retail News
  • Service Retail News
  • Contact

Newsletter Sign Up.

No Result
View All Result
  • Home
  • Retail News
  • Service Retail News
  • Contact

© 2022 Direct Retail News Hubb All rights reserved.