The home-improvement retailer said Thursday that it will pay out one-time bonuses and add to its benefits package, stating that it expects President Trump’s new tax law, the Tax Cuts and Jobs Act, to be beneficial for business in 2018.
More than 260,000 hourly employees are set to receive bonuses of up to $1,000, with amounts based on their time of employment with by company. Benefits are expected to soon include adoption assistance and paid parental leave.
Lowe’s, headquartered in North Carolina, reported that it expects to record additional net tax expenses of roughly $75 million in the fourth quarter of fiscal 2017 due to the tax changes, according to CNBC.
The company said it expects that the charge, combined with the planned bonuses, will drop fourth-quarter earnings by about 14 cents a share. Lowe’s added that it plans to “continue to make investments to better meet the needs of customers and its employees.”
More details on the bonuses and benefits packages are expected to be announced in the coming weeks, according to Lowe’s, which is expected to report its fourth-quarter earnings on Feb. 28.
Thursday’s confirmation of bonuses comes days after the company’s board approved a stock repurchase program of up to $5 billion, according to CNBC.