Lowe's is the world's second largest home improvement retailer and operated 952 stores in forty five states at their fiscal year ending January 30, 2004. The company is currently in the midst of the most aggressive expansion in its history with 130 new stores opened in 2003 and another 140 slated for this year. Lowe's saw 2003 sales reach approximately $30.8 billion, due largely to their focus on the retail customers and home-improvement projects.
             Fifty eight years ago Lowe's began as North Wilkesboro Hardware Company, a neighborhood hardware store fittingly named after the small town it was located in. Owned by partners H. Carl Buchan and James Lowe, this concept was more than a living, it was a vision of creating a chain of hardware stores.
             The concept was easy and straight forward. Lowe's concentrated on selling only hardware, appliances and hard-to-find building materials while eliminating wholesalers and dealing directly with manufacturers to establish a reputation of offering the lowest prices. The company went public in 1961 and began trading on the New York Stock Exchange in 1979 (NYSE:LOW). In 1982, Lowe's had its first billion-dollar sales year, earning a record profit of $25 million, establishing them as an industry force.
             Lowe's has posted extremely strong numbers in the past few years and the company has grown rapidly, swelling it's store base from 500 to over 950. Sales have increased an average of 20% per year and net income has surged 30% annually. Impressive earnings growth has translated into accelerated operating cash flow, allowing the company to strengthen their balance sheet and indicative ratios.
             Lowe's profitability ratios are excellent as each of the indicative measures have grown, surpassing each of the previous years. Return on shareholders equity of 18.21%
             is excellent, especially when compared with archrival Home Depot's projected 17%. Gross ...