The home improvement products retailer expects an earnings hit of 17 to 20 cents a share from the restructuring.
The company will now open just 10 to 15 stores a year in North America from 2012 onward, down from its prior target of 30 stores annually."We have an obligation to make tough decisions when necessary to improve profitability and strengthen our financial position," Lowe's said in a statement. At the beginning of the year, the company also said it would eliminate 1,700 manager positions as it cut costs to offset lackluster demand for big-ticket renovations. While Lowe's has shed manager positions, it's created assistant manager positions and added more part-time sales workers.