Is Lowe’s Going Out Of Business 2024?

Lowe’s is considered one of the leading home improvement retail stores in the United States and Canada. Recently, the company has stirred a lot of buzz in the home improvement industry by being the cause of the rumors. So, are the rumors true? Is Lowe’s going out of business in 2024?

Is Lowe's Going Out Of Business

These rumors have left many of its shareholders, employees, and loyal customers in a dilemma of the company’s future.

While many companies are still scuffling with the impact of the pandemic, Lowe’s is also attempting to realign its company’s strategies to the ‘new normal.’

Let’s discover what is the truth behind- is Lowe’s really going out of business, or is it just a new strategy of the company to survive in the industry?

About Lowes & How It Started

Lowe’s is an American retail company that specializes in home improvement. It revolutionalized the industry by being the second-largest hardware chain in the United States after its opponent, The Home Depot.

The company was first started in North Wilkesboro, North Carolina, in 1921 by Lucius Smith Lowe. After his death, the company was passed on to his daughter, then her brother, and finally to the brother-in-law, Carl Buchon.

Carl saw the potential in selling hardware after the impact of World War II, and under his management, the company stayed focused on hardware and building materials.

After the death of Bunchon, his five-man executive decided to trade the company publicly under the name Lowe’s Companies Inc.

Fortunately, by 1962, the company noticed optimistic growth by operating 21 stores, which reported an annual revenue of $32 million.

Since then, Lowe’s has grown nationally and has operated in 2,355 locations in the United States and Canada.

Who Owns Lowe’s Now?

Who Owns Lowe's Now

Lowe’s is a publicly-traded company, which means that it is owned by a diverse group of investors. These investors are comprised of institutions, individual investors, and company insiders.

The company began trading in the New York Stock Exchange in the year 1979 under the ticker symbol ‘LOW.’

Major institutional shareholders include Vanguard Group Inc., Blackrock Inc., and State Street Corporation.

Despite being publicly traded and having major institutional investors, the decision-making and corporate governance at Lowe’s are primarily driven by the Board of Directors and the Executive Leadership Team.

Who Are The Top Shareholders Of Lowe’s?

The following are the top shareholders of Lowe’s:

HolderSharesDate Reported% OutValue
Vanguard Group Inc52,446,605Jun 29, 20239.09%12,108,347,440
Blackrock Inc.41,437,964Jun 29, 20237.18%9,566,782,546
State Street Corporation25,223,923Jun 29, 20234.37%5,823,446,979
JP Morgan Chase & Company23,831,043Jun 29, 20234.13%5,501,872,781
FMR, LLC22,026,903Jun 29, 20233.82%5,085,350,988
Wells Fargo & Company11,431,505Jun 29, 20231.98%2,639,191,503
Geode Capital Management, LLC10,992,637Jun 29, 20231.90%2,537,870,050
Morgan Stanley10,813,838Jun 29, 20231.87%2,496,590,726
Bank of America Corporation9,480,489Jun 29, 20231.64%2,188,760,449
Massachusetts Financial Services Co.8,261,538Jun 29, 20231.43%1,907,341,237

What Is The Financial Health Of Lowe’s?

The global pandemic impacted almost every industry through either shutting down the company or expanding its revenue.

Well, thanks to the bored homeowners, home improvement showed positive growth during the pandemic, generating $440 billion in sales.

Now, by looking at Lowe’s financial report, it reveals a more nuanced picture. In 2020, the company reported sales of $27.3 billion, which is a 24.2% boost in sales as compared to the $21 billion sales reported in 2019.

Here is a table showing the revenue, net income, total assets, and price per share of Lowe’s from 2005-2019:

in mil. USD$
Net income
in mil. USD$
Total Assets
in mil. USD$
Price per Share
in USD$

Is Lowe Moving Out Of Canada?

Unfortunately, Yes, the company announced to selling of its 450 Canadian stores to a private equity firm called The Sycamore Partners.

The Sycamore Partners paid $400 million in cash and future performance-based incentives.

President and CEO of Lowe’s Marvin R. Ellison said in a statement that “the sale of our Canadian retail business is an important step toward simplifying the Lowe’s business model. 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.”

Is Lowe’s Going Out Of Business?

In the dynamic world of retailing, bankruptcy, and store closures, headlines are not uncommon. And one such company that made its way to the headline is -Lowe’s Company Inc.

It’s common to misread a few underperforming store closures as an expression of shutting down the whole company. However, the financial statements and reports of the company displayed a different story.

The financial records of the company stated that the company made a 24.2% increase in sales in the year 2020. In terms of profitability, Lowe’s operating income in percentage has also been around 9% to 8%, indicating a stable operation.

To put this in a more satisfactory view, the rival company, Home Depot, indicates a net profit margin of 10%, whereas Lowe’s net profit margin stands at 7.5%. However, it is slightly behind but indicates strong future potential.

Another critical point of evidence is Lowe’s strong performance in the stock market. The basic rule of closures indicates that the company would see a significant decrease in its stock value, but this isn’t happening with Lowe’s.

The company experienced a steady performance of the shares over the years and also experienced a surge during the pandemic.

These reports indicate that Lowe’s has only closed down their underperforming stores in the view to reinvesting their resources into a more healthy and productive store and not going out of business.

What Are The Reasons Of Lowe’s Stores Shutdown?

Lowe’s Recent Store Closures

A drastic step was taken by Lowe’s; shutting down its 51 underperforming stores in the United States and North America surprised many of its investors.

However, if you look at it from the company’s point of view, it was rather a smart and strategic move as all the stores that were closed down were identified as underperforming in terms of sales and productivity.

The objective of the company is to employ its resources from low performers to healthier and more profitable stores.

This decision of Lowe’s stands to improve its efficiency, drive growth, and solidify the company’s standing position in the domain.

What Is The Future Of Lowe’s & How It’s Competing With Its Rival Home Depot?


So, is Lowe’s going out of business?

It’s necessary to distinguish between the store closures and the shutting down of the entire empire. Store closures are simply a strategy to cut losses and reinvest resources into more profitable and productive operations.

By reallocating the company’s funds into more profitable ventures, it enhances the financial health and overall viability of its operations.

Moreover, it’s important to look at the financial statements and records of the company to get a more precise view of the strategies of the company.

We hope this article has provided you with a clear view of Lowe’s performance by debunking the myth of its running out of business.


What is happening with Lowe's?

Lowe’s will change the name of all its Canadian stores to RONA, and it also announced that it sold its 450 stores to a private entity named The Sycamore Partners.

Is Lowe's Stable?

Lowe’s has a stable business model and revenue streams. The company is known for its stability.

What is the weakness of Lowe's?

Lowe’s generates 93% of its total revenue from the U.S. market, and relying on only one market can be risky for the company.

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