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Professional Automatic Sliding Gate opener And Motor Manufacturer For Many Years 

English

lowe\'s companies, inc. (low)

by:LSDD     2020-01-08
Washington, D. C. Securities and Exchange CommissionC. 20549FORM 10-K(Mark One)
Annual reports submitted under sections 13 or 15 (d)
According to Section 13 or 15, the Securities Trading Act for Fiscal Year 34, 19, 3, 2017 Transition Report (d)
In the securities trading act of 1934th, Document No. 1-
7898low\'s company(
The exact name of the registrant specified in the articles of association)
North Carolina 56-0578072(
State or other jurisdiction registered or organized)(I. R. S.
Employer identity number)
1000 Lao Avenue.
Will, NC28117 (
Main executive office address)(Zip Code)
Registrant phone number including area code 704-758-
1000 securities registered under article 12 (b)
Title of the act: each class name of each exchange registered for common stock, $0.
50 face value of the New York Stock Exchange (NYSE)
Indicate by check mark whether the registrant is a well
Well-known experienced issuers as defined in Rule 405 of the Securities Act.
If the registrant does not need to submit a report under Section 13 or Section 15, xYeso does not indicate by a check mark (d)
The Trading Act.
Indicate whether the registrant (1)
All reports requested by Article 13 or 15 have been submitted (d)
Securities Trading Act of 1934 within the first 12 months (
Or a short period of time required for the registrant to submit such reports), and (2)
This filing requirement has been bound for the last 90 days.
Does the person with the XYeso NoIndicate check mark also submit in electronic form and post it on its company website (if any), each interactive data file requires submission and is subject to article 405th S-T (§232.
This Chapter 405)
Within the first 12 months (
Or in such a short time that the registrant is required to submit and publish these documents).
XYeso did not indicate by check mark whether the declaration of arrears was disclosed under section S-405 of the regulationsK (§229.
This Chapter 405)
As the registrant is aware, it is not included here and will not be included in the final proxy or information statement referenced in Part 3 of this form --
K or any amendments to this form 10K.
X indicates whether the registrant is a large accelerated filer, non-accelerated filer by check mark
A smaller reporting company.
See the definition of \"large accelerated file manager\", \"accelerated file manager\" and \"small Reporting Company\" in rule 12b
2 of the Trading Act. (Check one)
: Large acceleration filerxaccelated fileroNon-
Indicate whether the registrant is a shell company by checking the mark (
Defined in Rule 12b-
2 parts of the transaction law).
OYes xNoAs of july29, 2016, the last business day of the company\'s most recent second quarter, the total market value of the common stock of the registrant held by the unlisted company
The registrant\'s affiliates are $72.
4 billion according to the closing price reported by The New York Stock Exchange.
Indicate the number of outstanding shares of each class of common stock of the registrant as of the latest practicable date.
Average stock, $0.
50 par value 857,332,918 documents, incorporated by the reference section, which contains the part of the proxy statement of the Lowe 2017 General Meeting of Shareholders-
Directory-Page No. PART IItem 1. Business 1A.
Risk factor 1B.
Unresolved employee reviews 2.
Property item month.
Legal action 4.
Mine safety disclosure executive officers and certain important employees of Part III Project 5.
Market for registrant common stock, related shareholder matters and issuer to purchase equity securities
Selected Financial Data Items 7.
Management Discussion and Analysis of operational financial status and results
Quantitative and qualitative disclosure of market risks
Financial statements and supplementary data items 9.
Changes and disagreements with accountants on accounting and financial disclosure project 9A.
Control and procedure 9B.
Section IIIItem 10 of other information.
Project 11. Director, executive officer and corporate governance.
Item 12 of administrative compensation.
Secured ownership of certain beneficial owners and management and related shareholders.
Relationship with directors and related transactions.
Main accounting fees and services section IVItem 15.
Annex and schedule 16 to the financial statements. Form 10-
K summary signature of ContentsPart IItem 1-
The company of Business general information.
Subsidiaries (
Company or Lowe\'s)
A fortune. ®50 companies and the world\'s second largest home improvement retailer.
As offuary 3,207, Lowe operates 129 home-mounted and hardware stores, representing approximately square feet of retail space.
These businesses include 820 stores in 50 cities across the United States. S.
Including 87 Orchard Supply Hardware (Orchard)
There are 29 stores in Canada and 10 in Mexico.
During the 2016 period, Lao acquired the company. (RONA)
As of February 3, 2017, the company had owned and operated 245 stores in Canada and served some 236 dealersowned stores.
The RONA store represents a variety of supplementary store formats operating under various banners.
Lowe\'s was registered in North Carolina in 1952 and has been publicly held since 1961.
The company\'s common stock is listed on the New York Stock Exchange.
Stock code \"LOW \".
See item 6 of this year\'s report on Form 10, Selected Financial Data \"-K (Annual Report)
Historical income, profits and identifiable assets.
For more information on the company\'s performance and financial position, see Item 7 of this year\'s report, \"Management\'s Discussion and Analysis of Financial Position and operational results \".
Customers, market and competition our customers we provide services for homeowner, rental r and professional customers (Pro customers).
Retail customers consisting of individual homeowners and rent r complete a wide range of projects and vary in different areasit-yourself (DIY)and do-it-for-me (DIFM).
There are two major categories of professional customers: Construction industry;
Maintenance, repair and operation. Our market AmericaS.
The market remains our main market, with market share accounting for about 94% of total sales as of February 3, 2017.
Among the many businesses including Home Center, paint shop, hardware shop, timber yard and garden center, our income is included in the sub-division of building materials and garden equipment and supplies dealers (444)
Retail trade department of North American industrial classification system (NAICS)
, The criteria used by federal statistical agencies in the classification of commercial institutions, with the aim of collecting, analyzing and publishing statistics related to the United StatesS.
Business economy.
The total annual revenue reported by enterprises that included 444 of NAICS in 2016 was $352.
3 billion, this represents an increase of 5.
It was 9% higher than the amount reported in the same category in 2015.
The total annual revenue reported by enterprises that included 444 of NAICS in 2015 was $332.
6 billion, an increase of 4.
It was 7% higher than the amount reported in the same category in 2014.
These figures will be revised regularly by the United States. S.
Ministry of Commerce.
NAICS 444 accounts for less than half of what we think is America\'s total gdp. S.
The market for our products and services.
The broader market that Lao operates includes families-
Through various companies other than NAICS 444 for related sales.
These companies include other companies in the retail industry, including large retailers, household goods stores and online retailers, as well as wholesalers who provide household goods.
Provide related products and services to homeowners, businesses and governments.
Based on our analysis of the latest comprehensive data, we estimate the size of the US economy. S.
In 2016, sales in the home improvement market were $775 billion, of which product sales were $578 billion and installation labor sales were $197 billion.
By contrast, total market sales in 2015 were $730 billion, of which product sales were $543 billion and installation labor sales were $187 billion.
These figures will be revised regularly by the United States. S.
Ministry of Commerce and other three-party sources.
There are many factors that affect consumers\' demand for home improvement products and services provided by Lowe.
Key indicators we monitor include real disposable personal income, employment, house prices and housing volume.
We also monitor the population and social trends that affect the growth of the home improvement industry.
The content growth table of the actual disposable personal income is expected to be 2.
2017 was 3%, compared with 2.
According to 2016 blue-chip economic index March 2017 growth 8%®.
* The average unemployment rate of 2017 is expected to fall to 4.
6%, according to the Blue Chip Economic Indicators for March 2017, this will be from four improvements.
The average interest rate for 2016 was 9%.
As the job market continues to expand at a moderate rate, unemployment should continue to decline.
Recent evidence suggests that prices will continue to rise.
House prices rose five times in 2016.
The 4% is similar to 5.
According to the latest index of federal housing financial institutions, it increased by 5% in 2015.
Economists generally expect house prices to slow down in 2017.
It is estimated that the volume of houses has increased by 5.
1% in one or seven after 2016.
According to the National Association of Realtors and the American Association of Realtors, it increased by 3% in 2015. S. Census Bureau.
Turnover is expected to continue to grow moderately in 2017 due to continued growth in the job market, revenue growth and historically low mortgage interest rates.
These metrics are important for our business as they show that customers are willing to participate in home maintenance, repair and upgrade projects and have a positive impact on the revenue from purchasing our products and services.
Overall, with the support of continued growth in employment and income, housing and rising house prices, 2017 of the home improvement industry is still optimistic.
* Blue Chip Economic Indicators®(ISSN: 0193-4600)
Published monthly by Aspen publisher, 76 Ninth Avenue, New York, 10011 is Wolters Kluwer Legal and commercial division.
Printing in the United StatesS. A.
Our competitive home improvement industry includes a broad competitive landscape.
In most of our trade, we compete with other countries and international Home Improvement Warehouse chains and lumberyards.
We also compete with traditional hardware, plumbing, electrical, home goods retailers and maintenance and repair agencies.
In addition, we compete with general merchandise retailers, warehouse clubs, professional retailers who install home improvement products online and other, as well as service providers.
The location of the store is still a key competitive factor in our industry;
However, the increasing use of technology and the simplicity of online shopping also emphasize omni-
Channel ability as a competitive factor.
We differentiate ourselves from our competitors by providing a better customer experience while delivering superior product and service value.
See further discussion on competition in Item 1A, Risk Factors, of this year\'s report.
Products and services our product selection in order to meet the different home improvement needs of our customers, we provide a complete set of products for maintenance, repair, renovation and decoration.
We offer home improvement products in the following categories: Wood and building materials;
Tools and hardware; Appliances;
Fashion fixtures;
Rough pipes and electrical;
Seasonal sex lifeLawn & Garden; Paint; Millwork; Flooring; Kitchens;
Outdoor Power Equipment;
Fashionable home.
Typical Labor
The brand home improvement store stores about 37,000 items, with our special order sales system and various online sales channels, and thousands of items to choose from.
See note 17 to the consolidated financial statements in item 8, \"financial statements and supplementary data\", and this year\'s report lists historical revenue for the past three fiscal years by product category.
We are committed to providing a wide range of national brands
Named after our selected brand.
In addition, we are committed to ensuring that the products we sell are purchased in a socially responsible, efficient and economical manner. National Brand-
In many product categories, customers look for a familiar and trustworthy national brand to inject confidence into their purchases.
There are all kinds of national brands in Lao\'s home decoration store-
Name of goods such as Whirlpool:®GE®LG®And Samsung®Home appliances, Stainmaster®Carpet, whisky®Pella paint and stains®Windows and doors, siwania®Lightbulb, devarter®Hitachi Power Tools®Owens Corning pneumatic tools®Insulation and roof of GAF®James Hardy\'s roof®Husqvarna fiber cement wall panel®Outdoor Power Equipment in Werner®There are more ladders.
In 2016, we added 5 content brand listings such as Pergo®Multi-storey solid wood flooring, Quoizel®Lighting, Marshall®Masonry tools, Nest®Our portfolio.
Our choice of goods provides one for retail and professional customers
One-stop service for a wide variety of national brands
Name of goods required to complete home improvement, repair, maintenance or construction projects.
Private brands are an important part of our entire portfolio, helping to deliver important value and a coordinated style in the core category.
We sell private brands in several product categories.
Some of the most important private brands that look good include Kobalt®Tools for Alan Rose®Blue Eagle home decor®Home improvement products, project sources®Basic Value Portfolio®Garden Treasures lighting products®Lawn & Terrace products at Utilitech®Electrical and utility products®Doors and windows, water resources®Port breeze, taps, sinks and toilets®Ceiling fan, preferred®Timber Products and Iris®Home automation and management products.
Supply chain we source our products from suppliers around the world and believe that almost all of our products have alternative and competitive suppliers.
As long as it is possible, we buy directly from the manufacturer to save money for the customer and increase the gross profit margin.
Effectively transfer the product from our supplier to our store and-
Inventory level, we own and operate distribution facilities to enable products to receive, store and pick or cross-sell from suppliers
Then ship directly to our retail store or ship directly to the customer.
These facilities include 15 heights.
Automated regional distribution center (RDC)
In America.
On average, each domestic RDC serves about 118 stores.
We also own and operate ten distribution centers, including four timber yards, serving the Canadian market, and we lease and operate a distribution facility to serve our orchard store.
In addition, we have entered into service agreements with third-party logistics providers to manage distribution facilities to serve our stores in Mexico.
In addition to RDCs, we also operate coastal holding facilities, transfer facilities, electrical distribution centers and flat distribution centers.
The flat distribution center distributes goods that require special treatment due to the size or type of packaging such as wood, plates, panel products, pipes, siding, ladders and building materials.
Overall, our facilities make our imports and electronics
Business and parcel mailing qualified products to your destination as efficiently as possible.
Most parcel mailing items can be ordered by the customer and delivered at standard shipping costs within two business days.
In fiscal2016, on average, about 80% of the total inventory items we purchased were shipped through our distribution network, while the rest were shipped directly from the supplier to our store
Our service installation sales we provide installation services through independent contractors in many product categories, electrical appliances, flooring, kitchen, wood and building materials and wood products account for the majority of the installation sales.
Our installed sales model separates sales from project management tasks, allowing our sales colleagues to focus on project sales, while the project manager ensures that the details related to the installation of the product are effectively executed.
Installation sales, including products and labor, account for about 7% of fiscal2016\'s total sales.
Extended protection plan and repair service we offer extended protection plan in kitchen, appliances, tools and hardware, outdoor power equipment, seasonal sex life, rough plumbing electrical installation and garage door opener.
These protection plans provide the customer with product protection, enhancing or expanding the coverage provided prior to the manufacturer\'s warranty.
Protection plan provided-
Warranty and out-of-
Warranty repair services for major electrical appliances, outdoor power equipment, tools, grills, fireplaces, air conditioners, water heaters, as well as other qualified products obtained at home through our store or through the Lao authorized service repair network.
When the price is below $300 or a specific price point for another specific category, we offer a replacement plan for most of the products in these categories.
Our contact center answers the customer\'s calls, evaluates the issue and helps to resolve the issue
Because we manage the whole process, it is easier for our customers to get sales services.
Sales Channel we are continuing our progress to become an all-round
Channel retail companies, even in the same transaction, our customers can move from channel to channel through a simple and seamless transition.
For many projects, for example, 6 catalogues. More than half of our customers are doing online research. store purchase.
Buy on Lowes.
Com, about 60% is in-
Store, 10% shipped from store, 30% shipped from package.
60% pick up in
Store, 40% of customers choose to buy additional products when they arrive at our store.
Regardless of the channel customers choose to engage with us, we strive to provide them with a seamless experience across channels and endless product channels through our flexible performance.
Our ability to sell products
Online stores, online stores
The website, or through our contact center, states that we use omni-
We continue to introduce channel capabilities. In-
Store Lowe\'s-797
Brand home improvement stores, including 1,733 in the United StatesS.
Canada is 54 years old and Mexico is 10 years old. it is open seven days a week with an average retail space of about 112,000 square feet, plus an outdoor garden center sales space of about 32,000 square feet.
The 245 stores acquired in the RONA acquisition operate in the form of various complementary stores to meet the needs of target customers and occasions.
In addition, we operate 87 Orchard hardware stores in California, Oregon and Florida, which also serve home improvement customers with an average retail area of about 36,000 square feet.
Our home improvement shop in AmericaS.
Canada also offers similar products and services and varies depending on local market factors;
However, the orchard store is mainly focused on paint, repairs and backyard products.
We continue to develop and implement tools to make our sales staff more efficient and integrate our order management and fulfillment processes.
We have Wi in our home improvement shop-
Providing customers with Internet access Fi capabilities to quickly provide information and further simplify the shopping experience.
Through our website and mobile app, we seek to empower consumers by providing a 24/7 shopping experience, online product information, customer ratings and reviews, online purchasing guides and ways of doing it
Video and other information.
These tools can help consumers make smarter purchasing decisions and increase their confidence in home improvement projects.
In 2016, sales through our online sales channels accounted for about 3.
5% of our total sales.
We enable customers to choose from a variety of implementation options, including online purchases and online purchases
Delivery or parcel delivery to their home.
In addition, we have low benefits.
Com online tools allow our professional customers to order online easily and they can choose fromstore pick-
Save them time and money. On-SiteWe have on-
Provide on-site experts to retail and professional customers to help them select products and services for the project.
Our account lead ProServices meets with professional customers in their business premises or workplace and uses stores in the region to ensure that we meet customer needs for products and resources.
Our project specialist (PSE)
This project is in all America. S.
Lao\'s home improvement shop discusses external items such as roofs, siding, Fences and windows, which are characterized by the help of internal
On-site consultation sales methods.
In addition, the interior design of our project experts (PSI)
The project is now available in all the United States. S.
Lao\'s home improvement store provides similar consulting services for indoor projects such as kitchens and bathrooms.
Contact center slowe operates three Contact centers in wilkersboro, NC, Albuquerque, NM and Indianapolis in the United States.
These contact centers help Lowe achieve all-round
Channel customer experience by providing the ability to bid sales, coordinate delivery, and manage after-sales service
Sales installation, promotion of repair services for electrical and outdoor power equipment, and answering general customer questions by phone, mail, email
Mail, live chat and social media.
We employ about 2017 full-time employees and 190,000 employees.
Time and part 100,000-time employees.
Our employees in Mexico and certain employees in Canada must comply with the collective bargaining agreement.
No other employees comply with the collective bargaining agreement.
Management believes that good relations with employees.
Seasonal and working capital retail business is generally affected by seasonal, and our business is seasonal to some extent.
Historically, we achieved the highest sales in the second fiscal quarter (
June and July)
And our lowest sales in the fourth quarter (
November, December and January).
So in our fourth fiscal quarter, our demand for working capital has historically been greater as we expect inventory to be set up in the spring sales season, while sales will be lower in the fourth fiscal quarter.
We mainly meet our working capital needs through cash flow 7 tables generated by operations, but also through short-term
Provide regular borrowing as required.
For more detailed information, see the financial position, Liquidity and Capital Resources section of item 7, \"Management\'s Discussion and Analysis of Financial Position and operational results\", reported this year.
The name \"Lowe\'s\" of intellectual property is the registered Service sign of one of our wholly owned subsidiaries
Subsidiaries.
We think this logo and the accompanying name recognition are valuable to our business.
The subsidiary and other wholly owned subsidiaries own and maintain a variety of additional registered and unregistered trademarks, trademarks and service trademarks, includes, but is not limited to, the retail name \"RONA\", \"Reno Depot\" and \"Orchard Supply Hardware\", the online retail name \"ATG store\" and the private brand product name \"Kobalt\" and \"allen roth \"\".
These subsidiaries also maintain a variety of Internet domain names that are important to our business, and we also have registered and unregistered copyrights.
In addition, we maintain a patent portfolio related to some of our products and services and seek patents or otherwise protect certain innovations that we incorporate into our products, services or business operations.
Shiplowe, the environment flight attendant, knows that running a business can have an impact on the environment and our community, and we will continue to work to have a positive impact on that impact.
This is the responsibility we take seriously.
In 2016, we created a sustainability and product management committee led by senior management to review important strategies and policies on sustainability and product management and to make suggestions throughout the organization.
The company has launched the work of a comprehensive sustainable development strategy that creates business value and supports our goals, which we expect to complete by 2017.
Every year, Lowe\'s participates in the Carbon Disclosure program to track our carbon footprint.
In 2016, Lowe\'s external validation of its greenhouse gas emission data collection and analysis to verify our findings and increase confidence in our reporting.
In 2016, 32 retail locations were upgraded to indoor lightingLEDs (LED)
Lighting and opening of 7 new stores with LED lighting already installed.
We plan to continue to implement indoor LED lighting and seek solutions for specific lighting needs that improve energy efficiency and customer experience.
In 2016, we expanded our testing of a state. of-the-
Management system of art buildings (BMS)to 100 stores.
BMS monitors equipment performance and provides valuable information to help facility managers manage energy consumption, reducing costs and carbon emissions.
Lowe conducted an energy efficiency audit of heating, ventilation and air conditioning systems and will upgrade some systems in 2017.
Lowe is committed to promoting the sustainable development of the transportation industry.
We work with the SmartWay project of the Environmental Protection Agency to improve efficiency by creating incentives for freight contractors, thereby reducing transport emissions, and proud to be one of only nine companies in 2016 that won the SmartWay Excellence Award, an Environmental Protection Agency in the logistics and shipping Category --
This is the only retailer to win this honor for eight consecutive years.
As we seek to reduce waste from landfill sites and increase recycling in stores and distribution centers, our recycling plan remains a priority. We operate in-
Every Lowe store in the continental United States has a store recycling center that encourages customers to recycle compact fluorescent lamps, plastic bags, rechargeable batteries and mobile phones. We offer haul-
Remote service for customers who purchase replacement appliances, our garden center also accepts plastic plant trays and flower pots for recycling.
In dry areas, it is essential to manage our water resources.
In 2016, we have installed the irrigation technology combined with the actual water point
Time weather data with site-
Specific information on reducing water consumption and saving utilities costs.
These systems are located in 200 locations and we expect to expand to 200 locations in the coming year.
Customers are more than ever looking forward to safe, socially and socially responsible, reasonably priced products.
There are more and more choices for labor products, which can save energy and water, reduce potential harmful chemicals, or alleviate family concerns about safety.
We also engage with our product suppliers, manufacturers and other external stakeholders to ensure that we have the most innovative new products.
For more information on Labor\'s environmental efforts, please visit tlowes.
Social responsibility.
Investing in our community\'s content sheet lowe has a long and proud history of supporting local communities through public education and community improvement programs, starting with the founding of the Lao charity and education foundation in 1957.
In 2016, the charity and education foundation of Lao and Lao donated about $38 million to schools and community organizations in the United States, Canada and Mexico, including but not limited to what is discussed below.
The best example of our commitment to improving educational opportunities is our signature education funding program, Lao\'s education toolbox®, 2016 mark 11-of the program-
Anniversary.
In 2016, the education toolbox of Lao®A grant of approximately $7 million has been provided, and since its inception, funding improvements have been made in nearly 12,000 schools, benefiting more than 6 million children.
Every year, we work with national non-profit organizations to strengthen and stabilize communities in the communities we serve.
In 2016, Lloyd donated $7 million and worked with the Centre for Human Settlements and reconstruction to provide housing solutions in collaboration with families across the country.
We also continue to build long-term partnerships with American Boys and Girls Clubs, skills associations, nature conservation associations, and maintain the beauty of the United States to improve communities and build future leaders.
Lao is also committed to helping the community residents we serve, where we will be when we need it most --
When natural disaster threats and subsequent recovery.
In 2016, Labor donated nearly $2.
1 million, and mobilized hundreds of volunteer heroic employees to help families across the United States recover from the disaster.
For the second year in a row, Lowe participated in the hero volunteer program at 100% stores in the United States.
For more information about Lowe\'s partnership and the latest community improvement project, visit tlowes.
Social responsibility.
Available information our annual report, Quarterly Report on Form 10
Q: Current Report of Form 8
K and amendments to reports submitted or provided under section 13 (a)or 15(d)
The revised 1934 Securities Trading Act is available free of charge through our internet site atwww. Lowes.
Com/investor, as soon as possible after such documents are submitted electronically to or provided to the Securities and Exchange Commission (SEC).
The public can also read and copy any materials submitted by the company to the SEC in the public information room at 100 F Street, NE 20549, Washington, DC.
Information about the operation of public data rooms can be reached by calling SEC 1-800-SEC-0330.
The SEC maintains an Internet site, www. sec.
Gov, which contains reports, agency and statement of information, as well as other information related to issuers of electronic documents to SEC. Item 1A -
Risk factors we develop a risk management process using regular surveys, external research, planning processes, risk mapping, analysis, and other tools, to identify and evaluate operations, finance, environment, reputation, strategies and other risks that may adversely affect our business.
For more information about our risk management framework, which is managed by our CFO, including risk mitigation controls and procedures for the significant risks we identify, please see the description contained in the final proxy statement of our 2017 Annual Meeting of Shareholders (
As defined in item 10 of Part III of this annual report)
The role of the board in the risk management process.
\"We describe below certain risks that may adversely affect our operational results, financial position, business reputation or business prospects.
These risk factors may change from time to time and may be modified, supplemented or replaced by updates to the risk factors included in our future table 10 periodic reportK, Form 10-
Q and our report on other forms submitted to the Securities and Exchange Commission. All forward-
In this annual report, in our annual report to Lowe shareholders, and in our subsequent report to the Securities and Exchange Commission, view statements about our future operating results or other matters, and our press releases and other public communications are in line with the risks described below.
You should read these risk factors in conjunction with \"Management\'s Discussion and Analysis of Financial Position and operational results\" in Item 7 and consolidated financial statements and related instructions in Item 8.
We may also not be able to predict or fail to describe other factors as described in this annual report, as we do not currently think they are important.
These factors may lead to significant differences in results from our expectations.
We may not be able to adapt our business philosophy in a fast-growing retail environment to respond to changing shopping habits, needs and demographics of our customers, or to achieve the expected benefits of an organizational change plan.
Like the general retail environment, the home improvement retail environment is also developing rapidly, adjusting our business philosophy to cope with the changing shopping habits and needs of customers and their changing population structure, it is essential for our future success.
Our success depends on our ability to identify and respond to economic, social, style and other trends that affect the population and consumer preferences in our various commodity categories and services.
Customers\' expectations of how they want to research, buy and receive products and services are also constantly changing.
It is difficult to predict the combination of products and services that our customers will demand.
Failure to identify these trends, to adapt our business concepts, to successfully implement change, growth, and productivity initiatives can have a negative impact on our relationship with our customers, the demand for home improvement products and services we sell, the growth rate of our business, our market share, and the results of operations.
We may not be able to achieve the benefits of our comprehensive strategic initiatives.
If we can\'t provide the capabilities we need to execute these businesses, channel sales and marketing will emerge.
Our interaction with our customers has evolved into a full range
Channel experience as they increasingly use computers, tablets, mobile phones and other devices to shop in our stores and online and provide feedback and public comments on all aspects of our business. Omni-
Channel retail is growing rapidly and we have to anticipate and meet the expectations of our customers and offset new developments and new technology investments from our competitors. Our customer-
Technology-oriented systems must attract our customers, play a role in accordance with the design, and provide a consistent customer experience.
In order to adapt our business philosophy to the changing shopping habits and needs of our customers and the changing demographic structure, the success of our strategic initiatives will require us to provide large-scale complex plan priorities and plan sequencing that require more integrated planning.
These initiatives will require new capabilities in many positions and our management, staff and contractors will have to adapt and learn new skills and capabilities.
If they are unable or unwilling to make these changes, we may not be able to achieve the full benefits of our strategic initiatives or expand our relevant market access.
If we fail to provide a consistent experience to our customers, our operating results, financial position or business prospects may also be adversely affected regardless of the sales channel, if our technical system does not meet the expectations of our customers, if we cannot offset new developments and innovations from our competitors, if we are unable to attract, retain and manage the succession of talents for additional personnel at all levels of the company, these people have the skills and capabilities needed to implement strategic initiatives and drive the changes necessary to successfully adapt to our business philosophy in a rapidly changing retail environment
Our business and reputation may be adversely affected by failure to protect sensitive customers, employees, suppliers or company information or failure to comply with changing regulations relating to our obligations to protect the system, assets and such information from cyber threatsattacks. Cyber-
Attacks and tactics designed to access and utilize sensitive information through mission-critical systems that violate large organizations are evolving, and in recent years high-profile electronic security breaches have led to unauthorized release of sensitive customer information, more and more frequent in some major parts of the United StatesS.
Companies, including several large retailers, despite the network
Attack threats and improved data protection methods.
Like many other retailers, we receive and store certain personal information about customers, employees and suppliers.
Also, we use the third
Third-party service providers for certification, content delivery, back-office services, etc.
Office support and other functions.
Although we continue to be vigilant and invest in information security, we still
Third-party service providers may not be able to adequately anticipate or prevent violations in our or their systems that result in unauthorized release of sensitive data.
If this happens, it may have a significant adverse effect on our reputation, drive away the client and cause financial losses resulting from remedial action or potential liability (including possible punitive damages.
Security vulnerability causes unauthorized release of sensitive data from us or our third party
The information systems of third-party service providers may also greatly increase the costs we have already incurred to guard against such risks.
In addition, as the regulatory environment related to the obligations of retailers and other companies to protect these sensitive data becomes more stringent, we may be subject to fines or other regulatory sanctions if we fail to comply with applicable regulations, and may be subject to litigation.
We have to pay-
The associated risks may increase our operating costs, expose us to fraud, place us under potential responsibility and have the potential to disrupt our business.
We accept payment in various ways including credit card, debit card, credit card account, our private label and cooperation
Brand credit card, gift card, direct debit of customer bank account, consumer invoice and physical bank check, we may offer different payment options over time.
These payment options are subject to many compliance requirements, including, but not limited to, compliance with payment card association operating rules, including data security rules, certification requirements, electronic fund transfer and Payment Card Industry Data Security Standard management rules.
They also expose us to potential fraud by criminals who try to identify and exploit possible security holes in these payment systems.
For certain payment methods, including credit and debit cards, we pay for exchanges and other fees that may increase over time and increase our operating costs and reduce profitability.
We rely on third parties to provide payment processing services, including processing of credit cards, debit cards, e-checks, gift cards and promotional financing, if these companies are unwilling or unable to provide these services to us, this could disrupt our business.
If we do not comply with these rules or requirements, or if our data security system is compromised or compromised, we may be liable for the costs, penalties and higher transaction fees of the issuing bank. Having lost the ability to accept payments from customer credit and debit cards, process electronic money transfers, or facilitate other types of online payments, our business and operational results may be adversely affected. As customer-
Technology-oriented systems have become an increasingly important part of our full range.
Channel Sales and marketing strategies that fail to execute effectively and reliably may prevent us from delivering a positive customer experience.
Access to the Internet through computers, tablets, smartphones and other mobile communication devices gives our customers power and changes the way they shop and the way we interact with them.
Our website, including Lowes.
Com and Lowesforpros.
Com, is the sales channel of our products, and also provides our customers with products, projects and other related information that affects our products. store sales.
Also, we have multiple affiliate sites and mobile apps through which we seek incentives, notifications, cross-cutting
Sell, build online communities and interact with our customers.
Performance issues for these customers
In the face of temporary disruption caused by technical systems, including distributed denial of service, ransomware or other network attacks.
Attacks, or one or more attacks that fail completely, without a disaster recovery plan that can be implemented quickly, will quickly undermine the positive benefits they provide for our home improvement business, and have a negative impact on our customers\' views on Lowe as a reliable source of information on online suppliers and home improvement products and services.
If we fail to hire, train, manage and retain qualified sales assistants and experts with extended skills, or company support personnel with the ability to achieve strategic objectives, we may lose sales to our competitors, and the execution of operations or company strategies may have a negative impact on our labor costs.
Our customers, whether they are homeowners, renting r or commercial enterprises, want our sales assistants and experts to have a good training and understanding of the products we sell and the home improvement services we provide.
We compete with many of our sales assistants and experts from other retailers, and we have invested heavily in training and development parties to fight for high engagement.
Our sales assistants and experts must expand their skills more and more, including in some cases, in the following areas
Door-to-door or telephone sales.
One of the key challenges we face is to attract and retain a sufficiently diverse workforce to deliver relevant, culturally competent and differentiated experiences to our diverse clients.
In fact, in many of our stores, our employees must be able to serve customers whose main language and cultural traditions are different from their own.
In addition, in order to achieve omni-
We rely on the professional training and ability of the company support personnel widely sought by our competitors for the channel expectations of our customers.
If we are unable to hire, train, manage and retain qualified sales assistants and specialists, the quality of service we provide to our customers may decline and the results of our operations may be negatively affected.
In addition, our ability to meet the needs of the workforce while controlling costs is affected by a variety of external factors, including payroll rates, availability and competition of talent, our brand image and reputation, changing demographic structure through new or revised employment and labor laws and regulations.
We will accept the efforts of the ILO on a regular basis, and if we accept collective bargaining agreements in the future, this may adversely affect the way we operate our business, and adversely affect our labor costs and our ability to retain qualified labor.
Actively and effectively managing our public image and reputation is critical to the success of our business, and if our public image and reputation are damaged, it may have a negative impact on our relationship with our customers, colleagues and experts from suppliers and stores, therefore, the results of our business and operations.
Our public image and reputation are essential to ensure that our customers shop at Labor, that our suppliers want to do business with Labor, and that our sales assistants and experts want to work for Labor.
We must continue to manage, maintain and develop our public image and reputation.
Any negative event will quickly erode our trust and confidence, and negative publicity to us will damage our reputation and brand image and the confidence of our customers, reducing the impact on our products and services our relationship with current and future suppliers affects our operational results and our ability to retain and recruit store staff and experts.
The use of social media has significantly expanded in recent years, aggravating the potential scope of negative publicity that such negative events may produce.
Strategic transactions, such as our acquisition of RONA, involve risks and we may not be able to achieve the expected benefits due to many uncertainties and risks.
We often consider and participate in strategic transactions, including mergers and acquisitions, joint ventures, investments and other growth, market and geographic expansion strategies, these transactions are expected to lead to an increase in content sales, cost savings, synergies and various other benefits.
Our ability to obtain the expected benefits from any strategic transaction is affected by many uncertainties and risks, including our ability to successfully integrate people, labor models, finance, IT and other systems;
Disruption and fragmentation of our ongoing business;
Recruitment of additional management and other key personnel;
Increase the scope, geographical diversity and complexity of our business.
In order to provide reliable and accurate financial reporting, effective internal control is necessary, and the integration of the business may bring complexity to our financial system and internal control and make it more difficult to manage.
The integration of the business into our internal control system may result in our inability to meet our financial reporting obligations.
In addition, any damage to goodwill or other assets acquired or spun off in a strategic transaction, or charges for income related to any strategic transaction, may significantly reduce our income.
Our shareholders may react adversely to our strategic transactions if we do not get any expected benefits from them, we may face additional liabilities for any acquisition business or joint venture and we may face litigation related to strategic transactions.
In addition, we may finance these strategic transactions by increasing our debt, which may increase leverage or affect our ability to acquire capital in the future.
Failure to achieve and maintain a high level of product and service quality can compromise our image with our customers and have a negative impact on our sales, profitability, cash flow and financial position.
Product and service quality issues may have a negative impact on customer confidence in Lowe and our brand image.
If our products and services do not meet the applicable safety standards or customer expectations for safety or quality, we may experience sales losses and increased costs and face legal, financial and reputation risks.
Actual, potential or perceived product safety issues may expose us to litigation and government enforcement actions and lead to costly product recalls and other liability.
As a result, Lao\'s reputation as a retailer of high-quality products and services, including private brands of the state and Lao, may be affected and affect customer loyalty.
We have many competitors who can get sales and market share from us if we can\'t execute our sales, marketing and distribution strategy effectively, or, if they develop a more effective or cost-effective way to meet the needs of our customers, it will have a negative impact on our business and operational results.
We operate in the competitive home improvement products and service market, with many direct and indirect competitors, large and small.
The main competitive factors in our industry include convenience, customer service, quality and price of goods and services
Inventory level, classification and display of goods.
We are faced with increasingly fierce competition from online and multiple parties.
Channel retailers with similar products or services.
Customers are increasingly able to quickly compare stores and identify real
Timing the availability and price of the product using digital tools.
We fail to respond effectively to competitive pressures and changes in the home improvement product and service market, which may affect our financial performance.
In addition, changes in competitors\' promotional pricing and other practices, including the impact of competitors\' clearing activities, may affect our results.
We are unable to effectively and efficiently manage and maintain relationships with selected suppliers of branded products, which may have a negative impact on our business operations and financial results.
We build strategic relationships with selected suppliers to sell and develop products with a wide range of recognized and respected national and international brands.
We have also established relationships with certain suppliers, enabling us to sell proprietary products that are different from other retailers.
Failure to effectively manage and maintain our relationships with these suppliers can have a negative impact on our business operations and financial results.
Failure of key suppliers or service providers that we are unable to quickly replace may disrupt our operations and negatively affect our business, financial position and operational results.
We rely on many suppliers as the sole or primary source of some of the products we sell.
We also rely on many independent service providers to provide technical solutions and other services that are important to many aspects of our business.
Many of these suppliers and service providers have certain product or professional skills required to support our business concepts and strategies.
If these suppliers or service providers stop operating or fail to perform as expected, or if we fail to manage them properly and cannot replace them quickly, our business may be adversely affected, at least temporarily until we are able to replace them and may be permanent in some cases.
If, for any reason, our domestic or international supply chain or the fulfillment network of our products is invalid or interrupted, or if these businesses are affected by changes in trade policies, the results of our actions may be adversely affected.
We purchase, store and sell products from domestic and foreign suppliers who can complete orders reliably and efficiently, which is critical to the success of our business.
We have purchased a large number of products from foreign manufacturers, and China is still the main source of imports.
Results of November 2016S.
The election could mark a change in trade policy between the United States and other countries.
Because a large part of our goods come from outside the United States, there has been a major change in tax policy or trade relations, for example, tax relief for importing 12 catalogues is not allowed, or impose additional duties or duties on imported products, which may adversely affect our business, operating results, effective income tax rate, liquidity and net income.
Financial instability between major suppliers, political instability in the country of origin or elsewhere in our supply chain and labor instability, changes in commodity costs in our supply chain (
Fuel, labor and currency exchange rate)
Port labor disputes and safety, outbreak of pandemic, weather-
Related events, natural disasters, stoppages, restrictions on shipping capacity, changes in trade policies, retaliatory trade restrictions, tariffs or tariffs imposed by the United States or major source countries, fluctuations in currency exchange rates and transport availability, capacity and cost are beyond our control, and if the product is severely interrupted or cost increases through our supply chain, it may have a negative impact on our business.
In addition, as we increase our fulfillment capacity or pursue strategies with different fulfillment requirements, our fulfillment network becomes more complex and our operations become more challenging.
If our fulfillment network is not functioning properly or if the supplier fails to fulfill the promise, we may encounter a delay in inventory, an increase in delivery costs or a shortage of goodsof-
Stocks that may result in loss of sales and a decline in customer confidence, and adversely affect the results of our operations.
Failed to effectively manage our third
The installer may increase operational and legal risks and have a negative impact on our business, financial position and results of operations. We use third-
Party A installers who provide installation services to our customers, as the general contractor, we are subject to regulatory requirements and risks applicable to the general contractor, including the management of licensing, our third party licensing and quality
Party installer
Third, we have failed to manage these requirements effectively.
Party installers and our internal processes regarding the installation services may result in loss of sales, fines and litigation, as well as damage to our reputation, which may have a negative impact on our business.
Operations at the international level pose unique challenges, including those that require us to adapt our store operations, merchandising, marketing and distribution functions to serve our clients in Canada and Mexico.
If we fail to address these challenges effectively, our business and operational results may be negatively impacted.
We expect stores in Canada and Mexico to continue to grow over the next five years.
International expansion presents unique challenges that may increase the expected cost and risk of such expansion and slow expectations.
Future operating results in these countries or other countries or regions where we currently operate or may operate in the future may be negatively affected by various factors, including adverse political or economic factors, adverse tax consequences, fluctuations in foreign exchange rates, increased difficulty in implementing intellectual property rights, costs and difficulties in managing international operations, identify and sign up challenges with local suppliers, as well as other risks arising from cultural, legal and regulatory differences.
These factors may limit our ability to operate international operations and thus have a negative impact on our operating results and financial situation.
In addition, when the activities and balances of our foreign operations are translated into US operations, the operational results and financial conditions we report may also be negatively affected by the exchange rateS.
USD for financial reporting purposes.
We must comply with various laws and regulations that vary greatly in every area we operate.
Changes in existing or new laws and regulations or regulatory enforcement priorities, or our inability to comply with them, may adversely affect our business, financial position and operational results.
Laws and regulations at the local, regional, state, federal and international levels often change, and these changes may bring huge costs and other compliance burdens to our businesses and suppliers.
If we do not comply with these laws, rules and regulations, or do not comply with the interpretation or application of these laws, rules and regulations, we may be affected by government enforcement actions, litigation, reputational damage, civil and criminal liability, damages, fines and penalties, and an increase in compliance costs, any of these may adversely affect our operating results and financial performance.
These laws, rules and regulations include, but are not limited to, import and export requirements of the United StatesS.
Laws such as the Foreign Corrupt Practices Act and local laws prohibiting payments to government officials for corruption.
Although we have implemented policies and procedures to help ensure compliance with these laws, rules and regulations, our employees and third parties doing business with us will not act in violation of our policies or laws, this is uncertain.
Many of these laws, rules and regulations are complex and constantly changing and are affected by different interpretation and enforcement actions.
Any changes to the regulations, the implementation of the additional regulations or the enactment of any new legislation may adversely affect our financial position and the results of our operations directly or indirectly.
Due to changes in the implementation of existing laws and regulations or implementation priorities, we may also be investigated or audited by government authorities and regulators, which may occur in the normal business process, it may also be due to an increase in the review of industry, country or practice by a particular agency.
Future litigation or government litigation may lead to significant adverse consequences, including judgment or settlement, which have a negative impact on our business, financial situation and results of operations.
We will now and in the future participate in litigation, regulatory investigations, and government and other legal proceedings arising from the normal process of our business.
Some of these proceedings may have difficult and complex factual and legal issues and may be affected by uncertainty and complexity.
The timing of the final resolution of litigation, regulatory investigations, and government and other legal proceedings is often uncertain.
In addition, the possible outcome or resolution of these proceedings may include adverse judgments or settlements, any of which may require substantial payments.
In addition, the defense of these proceedings may need to divert the attention and resources of management.
Any legal action in which we are currently involved individually or collectively is not considered substantive.
Our financial performance may be adversely affected if our management information systems are severely disrupted, or if we fail to properly maintain, improve, upgrade and extend them.
An important part of our efforts to provide a full range of services
Providing a channel experience to our customers, including investing, maintaining and continuously improving our existing management information systems that support operations such as sales, inventory replenishment, merchandise ordering, project design and execution, handling and fulfillment of transportation, receiving goods.
Due to catastrophic events, power outages, viruses, malicious attacks, telecom failures, our systems are damaged or interrupted, and we may incur significant costs, data loss and erosion of customer confidence.
In addition, we continue to invest in our system, which may lead to disruption.
Our financial performance may be adversely affected if our management information systems are severely disrupted, or if we fail to properly maintain, improve, upgrade and extend them.
Liquidity and Capital Acquisition depend on efficient, rational and open capital markets and on the credit strength of labor.
Our inability to enter the capital market can have a negative impact on our business, financial performance and operational results.
We rely on the public debt market to fund part of our capital investment, commercial paper market and bank credit facilities to meet our liquidity needs.
Our entry into these markets depends on our strong credit rating, the overall state of the debt capital market and our operating performance.
The confusion of financial markets or the weakening of our credit strength or the decline in credit ratings may have a negative impact on our ability to meet capital requirements or fund working capital needs.
Our sales depend on the health and stability of the whole economy.
Adverse changes in the home improvement industry\'s unique economic factors may have a negative impact on the growth rate of our total sales and comparable sales. Many U. S.
Global economic factors may adversely affect our financial performance.
These factors include, but are not limited to, periods of slow economic growth or recession, a decrease in housing volume or a rise in house prices, fluctuations and/or a lack of liquidity in the United States from time to timeS.
And the world financial markets, as well as the subsequent reduction and/or increase in borrowing costs for Lloyd\'s and its customers, the slowdown in the growth rate of real disposable personal income, this may affect fluctuations in consumer spending, high unemployment, levels of consumer debt, fuel and energy costs, inflation or deflation in commodity prices, natural disasters, and domestic and international terrorist acts.
Sales of many of our product categories and services are driven by the level of activity of home improvement projects.
The adverse development of these factors may lead to a decrease in home improvement activities, thus reducing the demand for our products and services. Item 1B -
Unresolved employee reviews. Item 2 -
2017, our property includes 129 stores in the United States. S.
Canada and Mexico have a total of about 13 million square feet of sales space.
Of the total operating stores, 2017 have about 79% of the shares, including the stores on the leased land, and the rest are leased by third parties.
We also operate regional distribution centers and other facilities to support distribution and performance, as well as data centers and various support offices.
Our executive office is located in Moonsville, North Carolina. Item 3 -
Legal proceedings from time to time we are considered a party to various legal proceedings in the normal course of business, none of which are considered substantive.
We do not believe that any of these procedures, individually or in general, will not have a significant adverse effect on our operating results, financial position or cash flow.
Table 4-
Mine safety disclosure is not applicable.
The catalogue of certain important employees of the administrators and registrants listed below is the list of names and ages of the administrators of registrants and certain important employees indicating all positions and offices of registrants over the past five years, the main occupation or employment of these people and everyone.
Each executive officer of the registrant is elected by the board of directors.
Each executive officer of the registrant has served from the date of the election until the successor is elected or until his or her death, resignation or removal.
A.
He has served as chairman, president and chief executive of the board since 2011. Marshall A.
Chief financial officer of croom56 since March 2017;
Chief risk officer, March;
2009-2012, senior vice president and chief risk officer. Rick D.
Damron54 has served as chief operating officer since 2012;
Executive vice president of store operations, 2011-2012. Matthew V.
Since 2005, he has served as senior vice president and chief accounting officer of hollifield50. Richard D.
Has served as chief development officer and international president of maltsbarger41 since 2015;
Chief Development Officer, 2014-2015;
Head of Business Development, 2012-2014;
Senior Vice President Strategy, 2011-2012Ross W.
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