Lowe’s Cos Inc said its board had authorized a new $15-billion share repurchase program, as the home improvement chain benefited from strong sales of tools and building materials due to people upgrading their homes during the COVID-19 pandemic.
Shares of Lowe’s were up about 4% in premarket trading.
The buyback program has no expiration date and adds to the previous program’s balance, which was $4.7 billion as of Dec. 8, the company said on Wednesday.
The company also said it was introducing a new “Total Home” strategy to boost its market share by offering products and services such as paints, decor and repairs to its do-it-yourself as well as professional customers.
Lowe’s had already been investing in its supply chain and e-commerce unit to better compete with larger rival Home Depot Inc.
The company also reaffirmed its fourth-quarter forecast.
Lowe’s expects total sales for fiscal 2020 to increase about 22% and forecasts adjusted earnings per share to be between $8.62 and $8.72.
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