Lowe's to Give Over $100M in Bonuses to Frontline Workers This Quarter
In its second-quarter earnings report, Lowe's announced it would be doling out over $100 million in discretionary and profit-sharing bonuses to its frontline employees. The home improvement retailer employs roughly 300,000 associates, according to its website.
Payscale, a compensation software and data company, estimates the average hourly rate at Lowe's to be $14.74.
Shares of Lowe's rose Tuesday after the company reported a strong but mixed earnings report, sticking with its full-year forecast but falling short of expected sales. The company ended the quarter with nearly $25 billion in sales and net earnings of $2.7 billion, a decrease of 10.6 percent year-over-year.
“Our ability to reduce expenses while improving customer service is the result of excellent execution by our team, and we remain confident in the mid- to long-term outlook for the home improvement industry," Marvin Ellison, Lowe’s chairman, president and CEO, said.
Total Retail's Take: Lowe's, like many others in categories associated with the home, received a boost in sales during the COVID-19 pandemic as more people stayed home and spent time improving their homes. As the pandemic-fueled demand slowed, Lowe's was forced to contend not only with waning demand, but also with continued rising interest rates and higher costs of goods, impacting consumer spending (top line) and costs (bottom line).
To see its way through this challenging time, Lowe's introduced and made investments in its Total Home Strategy, which provides a full complement of products and services for pro and DIY consumers alike, enabling a total home solution for every need in the home. Foundational to this strategy is providing customers one of the world’s most customer-centric, omnichannel retail experiences. Lowe's reports that its Total Home Strategy is driving growth for its online business, as well as the market share of professionals who buy from Lowe’s. Credit goes to the leadership team for sharing those wins with the frontline staff in the form of bonus payments.