Latest news with #MyLowe'sProRewards
CNBC
06-08-2025
- Business
- CNBC
Lowe's trades at attractive levels. Using options to capture potential gains ahead
Lowe's (LOW) recently broke out from a major consolidation period and presents a strong upside opportunity. With the anticipated Federal Reserve interest rate cuts and LOW's targeted initiatives aimed at accelerating growth, the current levels provide a compelling entry point for investors to seek bullish exposure with an attractive risk-to-reward ratio. Trade timing The timing for bullish exposure in LOW is optimal, the stock has spent the last 5 months in a range between $210 and $230 consolidating. However, it just broke out above this trading range earlier this week while outperforming the S & P 500 . This suggests that there is potential institutional and retail accumulation on this breakout and we are targeting $265 to the upside, the high of 2025. Fundamentals LOW currently trades at a slight discount to its peers supported by strong profitability, suggesting moderate upside potential. Forward PE ratio: 19.4x vs. retail-cyclical industry average 22.0x Future EPS growth: 7.6% vs. industry average 7.2% Future revenue growth: 2.8% vs. industry average 3.7% Net margins: 8.2% vs. industry average 6.2% Bullish thesis Strategic Initiatives for Pro Customers: Lowe's has achieved a notable 30% Pro penetration, with strategic relaunch of its MyLowe's Pro Rewards loyalty program in 2025. Expanded Product Offerings: Lowe's is expanding its product assortments in nearly 500 stores targeting underserved rural markets. This initiative positions Lowe's uniquely to capture increased market share in regions lacking direct competition. Digital & Technological Investments: Lowe's partnerships with technology leaders such as Nvidia , OpenAI, and Palantir to leverage AI and the launch of the home improvement industry's first product marketplace significantly boost its competitive edge. Service Enhancements: Introduction of the Pro Extended Aisle program, allowing direct supplier engagement and streamlined jobsite delivery, significantly bolsters Lowe's competitive capabilities in servicing large Pro orders. Additionally, the anticipated shift in Federal Reserve policy, with interest rate cuts expected starting in September and potentially continuing through year-end, provides a supportive backdrop for interest rate-sensitive industries such as homebuilding and home improvement retail. Lowe's stands to benefit directly from increased consumer and Pro spending in response to more accommodative financial conditions. The trade To capitalize on this bullish outlook with earnings on deck in two weeks, I'm buying a Sept. 19, $240/$260 Call Vertical @ $6.37 Debit. This entails: Buying the Sep. 19, $240 call @ $8.35 Selling the Sep. 19, $260 call @ $1.98 Maximum reward: $1,363 per contract if LOW is above $260 at expiration. Maximum risk: $637 per contract if LOW is below $240 at expiration. Breakeven point: $246.37 View this Trade with Updated Prices at OptionsPlay . This bullish options strategy leverages Lowe's recent breakout, compelling strategic positioning, and macroeconomic tailwinds, providing you with a clearly defined risk exposure and strong upside potential heading into earnings. DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
Yahoo
22-05-2025
- Business
- Yahoo
Lowe's looks to pro loyalty program to drive higher spend
This story was originally published on CX Dive. To receive daily news and insights, subscribe to our free daily CX Dive newsletter. Lowe's is focused on improving the experience for professional contractors and online shoppers to accelerate sales, executives said on a Q1 2025 earnings call Wednesday. Pro sales and digital sales were bright spots in its earnings. Both saw mid-single-digit growth, which offset comparable sales decline of 1.7% year over year, according to an earnings report. 'We feel great about our pro business,' CEO Marvin Ellison said. 'And we also are really pleased with the adoption of our updated pro loyalty program, MyLowe's Pro Rewards, the ease of use and also the number of new customers that are joining the platform.' Lowe's is courting professional contractors and strengthening its online experience to bolster its bottom line. The retailer reported net earnings of $1.6 billion, according to an earnings report. Executives attributed the decline in comparable sales to the pullback in discretionary spending by DIY customers and bad weather early in the quarter. 'Despite ongoing challenges in the housing market, we are pleased with our team's focus and execution in the face of significant macro uncertainty. We continue to deliver operational excellence, combined with value and outstanding service to our customers,' Ellison said. The retailer credited its updated pro loyalty program for the momentum in pro sales. The program, which was rolled out in February, emphasizes simplicity and convenience. Lowe's expects the program to drive greater utilization, repurchases and higher spend. 'Pros only need to provide their phone number and check out, getting them back to the job site faster, and joining has never been easier with the addition of our new Spanish language enrollment option,' said Joe McFarland, EVP of stores. Lowe's DIY loyalty program, MyLowe's Rewards, also saw growth, reaching over 30 million members in the first quarter. Members spend nearly 50% more than nonmembers. Lowe's has been investing in AI to improve the digital shopping experience. The retailer launched Mylow, an AI-powered adviser, in March, which can provide 'step-by-step instructions for any project with any level of complexity from how to fix a leaky faucet to how to build a deck and everything in between,' Ellison said. Earlier this month, the retailer rolled out Mylow Companion for store associates across Lowe's more than 1,700 stores. The AI adviser has access to product details, product advice and inventory information. 'With this knowledge at their fingertips, our associates can quickly feel confident in answering customers' questions, even if they've just started in the store or been asked to cover a new department,' McFarland said. Despite price pressures from tariffs, Lowe's is looking to keep prices steady and says it will offer competitive pricing. 'We're not in the habit of donating market share to the competition, and so in this environment, we're going to be as keenly focused on competing on price as we are every single day,' Ellison said. Sign in to access your portfolio
Yahoo
28-02-2025
- Business
- Yahoo
Lowe's boasts growth in DIY loyalty, pro sales
This story was originally published on CX Dive. To receive daily news and insights, subscribe to our free daily CX Dive newsletter. Continued momentum in professional contractor and online sales, driven by investments in customer experience, helped Lowe's outperform expectations in its latest quarter, according to executives on a Q4 2024 earnings call Wednesday. Comparable sales grew a modest 0.2% year over year in the quarter despite lower DIY spending. The MyLowe's Rewards program, which was introduced last year, reached 30 million members during the fourth quarter, and loyalty members outspend non-members by nearly 50%, according to Bill Boltz, EVP of merchandising. The DIY program served as a blueprint for the MyLowe's Pro Rewards program, which relaunched last week. Lowe's will launch an AI-powered home improvement adviser in March, according to President and CEO Marvin Ellison. The tool, made in collaboration with OpenAI, will offer customer project advice and direct links to specific products to enable seamless checkout. Convenience and simplicity are two essential components of Lowe's customer experience plans, as seen in the home improvement retailer's redesigned loyalty programs. MyLowe's Rewards and MyLowe's Pro Rewards now run on the same platform and use the same points system, according to Joe McFarland, EVP of stores at Lowe's. 'This not only simplifies the customer experience, it's already making it easier for associates to explain and support the program,' McFarland said. 'This should drive greater engagement with our pro customers and incentivize repeat purchases and more trips to Lowe's.' Customer satisfaction scores are on the rise, including with the buy online, pick up in-store experience, according to McFarland. The improvements contributed to record sales on Black Friday and Cyber Monday, as about half of orders were picked up at the store. 'It tells us that the investments we've been making in our front end transformation are paying off,' McFarland said. Same-store sales reached $18.6 billion during the quarter, according to an earnings release. Online and pro comparable sales rose in the single digits. Lowe's is setting its sights on contractors with small- to medium-sized businesses, according to Ellison. The company categorizes its pro customers based on their shopping patterns and annual spend, as well as through quarterly surveys. The relaunched MyLowe's Pro Rewards is simpler than its predecessor based on feedback from pro customers, according to Ellison. The program also makes it easier to earn bigger rewards at lower spend levels in response to their needs. Lowe's and The Home Depot are each pursuing contractors, but their approaches differ. While Lowe's emphasizes smaller contractors, Home Depot's CX investments are aimed at pros of all sizes, including those with larger companies. 'Our initiatives are resonating with pros, and not only are we gaining traction with a larger pro that works on complex projects, we're also seeing meaningful lift in sales with all pros across all purchase occasions,' Ann-Marie Campbell, senior executive vice president of U.S. stores and operations at The Home Depot, said on a Q4 2024 earnings call Tuesday. Sign in to access your portfolio
