Home improvement retailer Lowe’s is closing 20 underperforming stores in the United States and 31 in Canada as part of a restructuring, the home improvement retailer said on Monday.
Lowe’s, which has trailed Home Depot in sales for years, is in the midst of a turnaround under new Chief Executive Marvin Ellison, who has promised to remove slow-selling products and end unsuccessful ventures.
The company is already shuttering its Orchard Supply chain of 99 stores, leading to between $390 million and $475 million in write-downs.
Lowe’s, which operates over 2,000 stores in North America, said the latest store closures would be complete by February.
“The store closures are a necessary step in our strategic reassessment as we focus on building a stronger business,” Ellison said in a statement.
The store closings will reduce its earnings by between 28 cents and 34 cents per share, and were not included in the forecast the company provided in August. At that time, Lowe’s said it expected to earn between $4.50 and $4.60 per shares in the fiscal year ending Feb. 1, 2019.