Wed, May 18, 6:26 AM
- Lowe's (NYSE:LOW) reports comparable-store sales rose 7.3% in Q1.
- Comps for the U.S. home improvement business increased 7.5%.
- Gross margin rate fell 43 bps to 35.04%.
- SG&A expense rate improved 188 bps to 22.28%.
- Merchandise inventory +4.2% to $11.06B.
- Home improvement and hardware stores +17 Y/Y to 1,860.
- FY2016 Guidance: Sales growth: ~+6%; Comparable-store sales: ~+4%; Operating margin: +80 bps to +90 bps; Tax rate: ~38.1%; Diluted EPS: ~$4.11; New stores: ~45.
- LOW +2.56% premarket.
Wed, May 18, 6:01 AM
Tue, May 17, 5:30 PM
Mon, May 16, 12:10 PM
- Leon Cooperman's Omega Advisors sold its roughly 3M share stake in Citigroup (NYSE:C) in Q1, which had accounted for about 3.4% of the fund's holdings.
- He took new stakes in PayPal Holdings (NASDAQ:PYPL), UnitedHealth (NYSE:UNH), Coach (NYSE:COH), Lowe's (NYSE:LOW), Autozone (NYSE:AZO), and Electronic Arts (NASDAQ:EA).
- Cooperman also cut his FANG exposure, selling more than 50% of his Facebook (NASDAQ:FB), and about one-third of his Google (GOOG, GOOGL).
- While the 13F also shows a new 227K share stake in Apple (representing 0.7% of the total portfolio), CNBC reports that holding has since been sold.
Sat, May 14, 11:01 AM
- The retail sector stays in focus next week with Target (NYSE:TGT), Wal-Mart (NYSE:WMT), TJX Companies (NYSE:TJX), and Ross Stores (NASDAQ:ROST) all due to report on Q1 earnings to follow on a week of dismal reports and guidance from the department store sector (Nordstrom, L Brands, Macy's, Kohl's). Home improvement chains Home Depot (NYSE:HD) and Lowe's (NYSE:LOW) are also due to spill numbers.
- The story from the Commerce Department's April read of retail sales (+3.0% Y/Y, +1.3% M/M) is one of a consumer spending on housing, entertainment, and personal care/fitness over apparel and general merchandise. The 10% Y/Y gain in the nonstore retailer category also tipped that the Amazon (NASDAQ:AMZN) Effect is magnifying.
- Amplify ETFs CEO Christian Magoon tells Seeking Alpha that the traditional retail model appears to be broken. Amplify's Online Retail ETF (NASDAQ:IBUY) is a bet on companies such as Netflix (NASDAQ:NFLX), GrubHub (NYSE:GRUB), Blue Nile (NASDAQ:NILE), and Shopify (NYSE:SHOP) that are reeling in millennial dollars.
- Magoon on retail: "Traditional retailers face the headwinds of higher cost structures including the very real threat of increasing wages in the form of the $15 minimum wage campaign. Less flexible with inventory management, they also are more vulnerable to issues like weather and changing consumer preferences."
- Retail ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, PBJ, IYK, FXD, IYC, RHS, FDIS, PEJ, FSTA, PSL, SCC, RCD, UCC, PEZ, PMR, PSCC, UGE, PSCD, SZK, BITE.
- Apparel stocks: KATE, ANN, LULU, PVH, VNCE, CRI, UA, HBI, VFC, COLM, GIL, SQBG, JCP, KSS, DDS, M, JWN, ARO, AEO, ANF, WTSL, TLYS, CACH, ZUMZ, PSUN, EXPR, BKE, GIII, SQBG, HBI, VRA, ICON, SHOO, PERY, DXLG, BONT, GES, URBN, RL,GIL, NKE, OXM, HBI, VNCE, PERY, ICON, FL.
Fri, May 13, 10:55 AM
Thu, May 12, 10:24 AM
- What should investors make of Home Depot (HD -0.2%) and Lowe's (LOW +0.1%) with the retail sector having a tough earnings week on general consumer spending weakness?
- Though home improvement spending was solid in Q1 on a broad measure, the outlook for the rest of the year from the home improvement chains is where the focus will fall.
- Other factors in the mix are the soft sales for Kohl's in the home goods category (spillover?) and the planned re-entry of J.C. Penney into the appliances business (supplier leveraging?).
- Shares of Home Depot and Lowe's have held up over the last five trading sessions amid some retail sector chaos, with HD actually out-performing the S&P 500.
Wed, Apr. 13, 10:47 AM
- Lowe's (LOW +0.1%) plans to use the proceeds from a series of notes to fund the acquisition of Rona.
- The company is selling $250M of floating rate notes due 2019, $350M of 1.15% notes due 2019, $1.35B of 2.5% notes due 2026, and $1.35B of 3.7% notes due 2046
- SEC Form 424b
- Now read 23 Stocks For April 2016
Wed, Apr. 13, 8:42 AM
- Retail sales for March were dragged lower by chain stores once again.
- Department store sales fell 0.6% M/M and 6.1% Y/Y as weak traffic trends continue to overwhelm.
- Clothing stores sales were down 0.9% M/M and were up only 0.1% on a year-over-year comparison, compared to the overall 1.7% gain in retail sales
- The category showing the most vitality during the month was building material & garden equipment with 1.4% M/M and 11% Y/Y sales gains. That trend bodes well for Home Depot (NYSE:HD) and Lowe's (NYSE:LOW).
- Previously: March retail sales miss estimates, prior months revised higher (April 13)
- Related ETFs: XLY, XRT, VCR, RTH, RETL, FXD, FDIS, RCD, PMR.
Fri, Mar. 18, 4:36 PM
Tue, Mar. 15, 8:49 AM
- Retail sales fell in February to mark the second month in a row of negative growth.
- Sales fell in key categories such as auto dealers (discounting?) and general merchandise stores (TGT, WMT, COST) in a disturbing trend, while gas station sales plummeted as largely expected due to prices.
- The building materials/garden equipment category showed strength, up 1.6% M/M and 12% Y/Y, as warmer weather helped traffic for companies such as Home Depot (NYSE:HD) and Lowe's (NYSE:LOW).
- Tepid traffic at restaurants has been a leading indicator that U.S. consumers aren't spending freely.
- Retail sector ETFs: XLP, XLY, VDC, XRT, VCR, RETL, RTH, FXG, IYK, PBJ, IYC, FXD, PEJ, FDIS, RHS, FSTA, SCC, UCC, RCD, PSL, PMR, PEZ, UGE, PSCC, PSCD, SZK, BITE.
- Previously: Retail sales slip in February, January revised significantly lower (Mar. 15 2016)
Mon, Mar. 14, 11:40 AM
- Credit Suisse can't shake off a deja vu feeling with the rally in some beat-up retail names.
- The investment firm notes that last year Dick's Sporting Goods (DKS +0.1%), GameStop (GME +2.5%), and Michaels (MIK -0.2%) staged a similar early rally before ending the year with below-par returns.
- Retailer with strong financials look more attractive to CS than comeback stores. Home Depot (HD +0.3%), Lowe's (LOW +0.3%), O'Reilly Automotive (ORLY -0.3%), and AutoZone (AZO -0.1%) are cited as examples.
Wed, Feb. 24, 6:28 AM
- Lowe's (NYSE:LOW) reports comparable-store sales rose 5.2% in Q4.
- Comps for the U.S. home improvement business grew 5.5%.
- Gross margin rate flat Y/Y at 34.7%.
- SG&A expense rate increased 340 bps to 28.6%.
- Merchandise inventory +6.1% to $9.46B.
- Home improvement and hardware stores +17 Y/Y to 1,857.
- FY2016 Guidance: Sales growth: ~+6%; Comparable-store sales: ~+4%; Operating margin: +80 bps to +90 bps; Tax rate: ~38.1%; Diluted EPS: ~$4; New stores: ~45.
Wed, Feb. 24, 6:01 AM
- Lowe's (NYSE:LOW): Q4 EPS of $0.59 in-line.
- Revenue of $13.24B (+5.6% Y/Y) beats by $170M.
Tue, Feb. 23, 5:30 PM
Tue, Feb. 23, 9:42 AM
- Home Depot (HD +2.7%) and Lowe's (LOW +0.3%) are both higher in early trading after warm weather across the U.S. in Q4 appears to have extended fall product buying from consumers past the normal time period.
- Home Depot's 9% gain in Q4 comparable-store sales blasted past the consensus estimate for a 5% rise. That mark bodes well for Lowe's which reports tomorrow.
- A bigger trend is also in play. The home improvement chains are benefiting from a general willingness by consumers to spend on house projects and accessories over apparel. The department store sector (JCP, KSS, JWN, M, SHLD) in particular is being hard hit by the pronounced shift in consumer preferences as comparable-store sales growth continues to retreat despite some store weaning.
- Previously: Home Depot beats by $0.07, beats on revenue (Feb. 23 2016)
- Previously: Home Depot +2.6% post record Q4 results (Feb. 23 2016)
Lowe's Cos., Inc. is engaged in the retail sale of home improvement products. The company offers products for maintenance, repair, remodeling, home decorating and property maintenance. It also offers home improvement products in the following categories: appliances, bathroom, building supply,... More
Industry: Home Improvement Stores
Country: United States