NEW YORK (AP) — Home improvement retailer Lowe's said Friday that it will add $5 billion to its spending plan for buying company stock.
The Mooresville, North Carolina-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.
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.