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Lowe's Spending $100 Million More for Pandemic Bonus for Workers

All of Lowe's active hourly associates in its U.S. stores, distribution centers and store support centers will receive a bonus on Oct. 16.

Lowe's  (LOW) - Get Free Report said Wednesday it would spend another $100 million in bonuses for U.S. hourly employees this month to recognize their service during the coronavirus pandemic, bringing the total to $775 million.

Shares of the Mooresville, North Carolina-based home-improvement retailer were rising 2% to $167. 

Lowe's said that all active hourly associates in Lowe's U.S. stores, distribution centers and store support centers will receive the bonus on Oct. 16.

Full-time hourly associates will receive $300, and part-time and seasonal associates will receive $150. 

The October bonus will match the funds Lowe's provided to all hourly associates in March, May, July and August.

With this latest round of coronavirus relief, Lowe's said it will have provided more than $775 million in incremental financial support to associates this year. 

Along with the previous special payments and bonuses, Lowe's increased pay for full-time, part-time and seasonal associates by $2 per hour for the month of April. 

"Throughout the spring, summer and now into fall, our front-line associates have shown remarkable resilience and dedication to our communities in the most trying times we have faced together,"  said Marvin Ellison, Lowe's president and CEO, in a statement.

The company, which has about 300,000 full-time employees, said it also will continue its longstanding tradition of closing stores on Thanksgiving.

Separately, Lowe's announced Wednesday a $3.5 billion cash debt tender offer.

"The purpose of the tender offers is to reduce interest expense and manage the maturity profile of the company's outstanding debt," Lowe's said in a statement.

In mid-September, Lowe's and Home Depot both received a downgrade after analysts at Oppenheimer expressed concerns over near-term risks in the home-improvement retailers.