COMP NEWS – Lowe’s Home Improvement is giving $55 million in bonuses to its in-store workers in an effort to improve employee retention and combat rising inflation.
Lowe’s Home Improvement plans to give its front-line workers $55 million in bonuses, as well as in-store discounts, to take the pinch off inflation.
Lowe’s announced the employee rewards, which include 20% discounts off household and cleaning items, as the home improvement chain released its second quarter earnings Wednesday.
“To help our hourly front-line associates during this period of high inflation, we are awarding an incremental bonus of $55 million,” Marvin Ellison, Lowe’s chairman, president and CEO, said in a statement. “I’d like to thank our associates for their continued hard work and dedication.”
Lowe’s has pinned poor sales performances on rising inflation along with a shortened spring season, but still reported high net earnings, which it has attributed to efficient store operations. As thanks, it is returning those increased earnings to its front-line workers.
Lowe’s reported lower-than-expected sales, the result of a shortened spring and lower demand, which were offset by improved operations for net earnings of $3.0 billion, in line with previous years.
“I am pleased that our team drove operating margin improvement and effectively managed inventory despite lower-than-expected sales — a clear reflection of our relentless focus on operating discipline and productivity,” Marvin Ellison, Lowe’s chairman, president and CEO, said in a statement.
Lowe’s blamed lower spring sales on inflation as do-it-yourself customers cut back on discretionary purchases. Many items popular during the pandemic, such as freezers, failed to sell as did seasonal products like patio furniture and grills.
Lowe’s competitor Home Depot reported its highest quarterly sales and earnings in the company’s history as it released its second quarter report Tuesday, with net earnings of $5.2 billion.
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