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Marvin Ellison, the chairman, president, and CEO of Lowe’s Companies Inc., once celebrated for his impressive gains earlier this year, has recently seen the market value of his stake in the U.S. home improvement giant plummet by nearly $8.1 million.
According to data tracked by Billionaires.Africa, Ellison, recognized as one of the world’s highest-ranking Black CEOs on the Fortune 500 list, has seen the market value of his stake in Lowe’s decline by $8.08 million in the past 39 days.
Lowe’s Companies Inc., a Fortune 50 home improvement powerhouse boasting a vast network of over 2,200 stores and approximately 300,000 associates across the United States and Canada, has thrived under Ellison’s leadership. The company achieved revenue of $97.1 billion in 2022, processing more than 17 million customer transactions per week.
However, this year has presented a different challenge for the company. Lowe’s sales have slowed as the unusually high demand fueled by the COVID-19 pandemic gradually fades. This decline in sales has become a top concern for shareholders, leading some cautious investors to sell their stakes in the home improvement retailer.
For the three-month period ending on Aug. 4, Lowe’s reported net income of $2.67 billion, or $4.56 per share, compared with $2.99 billion, or $4.68 per share, in the year-ago period.
In recent times, Lowe’s shares traded on the New York Stock Exchange have declined by 15.4 percent, falling from $233.61 on Sept. 7 to $197.66 at the time of drafting this report. This decrease in share price has pushed Lowe’s market capitalization below the $120-billion mark.
As a result of the double-digit slump in the company’s share price, the market value of Ellison’s minority 0.038-percent stake, equivalent to a total of 224,800 shares in Lowe’s, has fallen by $8.08 million in the past 39 days, from $52.52 million on Sept. 7 to $44.43 million at the time of drafting this report.
The decline in Ellison’s stake in Lowe’s reflects the current uncertainty surrounding the home improvement retail industry as the pandemic-driven demand fades and the company navigates through challenging market conditions.
