Home improvement retailer Lowe’s said Friday that it will add $5 billion to its spending plan for buying company stock.
The Mooresville-based company still has $2.4 billion left over from its previous program, bringing the fund to $7.4 billion.
When a company buys back its shares, it returns cash to its shareholders and also boosts its per-share earnings.
The improving U.S. economy has given homeowners more money and confidence to do work on their houses, a boon for retailers like Lowe’s and Home Depot. Many economists think the housing market will improve in the spring.
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Shares of Lowe’s Cos. have climbed 52 percent over the last year and are trading around all-time highs. The stock closed up 67 cents at $75.23 on Friday.