Lowe’s Marvin Ellison: Barron’s Top CEOs 2022

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Lowe’s

was in need of retooling when CEO Marvin Ellison, 57, took the helm in July 2018. Four years later, the proof of his efforts is in the stock’s performance: Lowe’s shares are up nearly 80% during his tenure, compared with a 34% increase in the S&P 500 index.

The Covid pandemic gave home improvement a boost—but its waning impact, along with a cooling housing market, have hurt Lowe’s shares recently. Still, Ellison says, the retailer can keep winning.

“Homes have become so much more to so many people than in the prepandemic period,” he says. “The majority of our homeowner customers are enjoying the benefit of lower fixed mortgage rates, which is motivating them to stay in their existing home and focus on repairs and renovations to make their home fit their needs.”

Lowe’s has continued to close the gap with rival

Home Depot

in key areas such as same-store sales growth, while widening its lead on the rest of the industry.

During the most recent earnings season, a stressful one for many retailers, gross margins expanded at Lowe’s, helped by factors like higher product margins and an appealing merchandise mix. The company continues to court industry professionals along with do-it-yourselfers, helping to diversify its revenue base.

“The degree to which people think about home improvement as home investment has changed. It has increased,” Ellison says.

Write to Teresa Rivas at [email protected]