Lowe's to close underperforming stores in US, Canada

Customers walk toward a Lowe's store in Hialeah Fla

Customers walk toward a Lowe's store in Hialeah Fla

"New blood in the upper ranks was clearly a catalyst for this decision, as we believe there is a greater willingness on behalf of the leadership team to examine the root causes of underperformance", Jefferies analyst Jonathan Matuszewski, said in a note.

The closures are a part of the company's ongoing reassessment of their stores.

Lowe's (LOW) is shutting down 20 stores in the U.S. and 31 in Canada. Twenty of the closings are in the USA, and California leads the way with four (San Jose, South San Francisco, Irvine, and Aliso Veijo).

The company says it will give associates opportunities to transition to other stores. The company will try to find jobs at nearby stores for its employees affected by the closings.

In addition to the 20 USA closings, the news release stated Lowe's will close 31 Canadian stores.

Lowe's said is expects to close the impacted stores by the end of the company's 2018 fiscal year - February 1, 2019.

Some U.S. stores will close immediately, though Lowe's did not immediately announce the locations. Lowe's has partnered with Hilco Merchant Services to help manage the process in the USA and ensure a seamless experience for customers.

To catch up, Lowe's has been working to slash costs and boost profits in recent years. Additional details regarding the impact of the store closings will be provided in the next quarterly earnings release on November 20.

The store closures are expected to have a financial impact of 28-34 cents per diluted share, Lowe's said.

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