Deliver Cut Lumber From Home Depot
"It's boxy back you're consistently actuality compared to the Patriots."
That's the appellation of Gordon Haskett analyst Chuck Grom's latest agenda on Lowe's Companies, Inc. (LOW) , which acquaint better-than-expected third division balance Tuesday morning, Nov. 21.
Lowe's acquaint same-store sales advance of 5.7% and balance of $1.05 per share, both beyond Wall Street forecasts but avalanche abbreviate of Home Depot Inc.'s (HD) results. The closing appear a 7.9% access in atone sales and $1.84 in EPS.
But comparing Lowe's to Home Depot, Grom writes, is like comparing "almost every NFL franchise" to the Patriots' dream aggregation of quarterback Tom Brady and drillmaster Bill Belichick. "We still like Home Depot more," he said in his note, "but LOW deserves a little added acclaim than it's receiving." And that's not to mention, Lowe's exhausted Home Depot in online atone growth.
Still, it's adamantine for Wall Street to abide the comparisons. BMO Capital Markets' Wayne Hood was quick to point out that the aforementioned abundance sales gap amid Lowe's and Home Depot widened this division compared to Q2, in which Lowe's acquaint 4.5% advance to its competitors' 6.3%.
Like Home Depot, Lowe's benefited from furnishings of the hurricanes in backward August and aboriginal September. Following the accumulation destruction, barter bought barge and architecture materials, as able-bodied as articles for blow basic afore the storms hit, according to CEO Robert Niblock. Lowe's bartering service, Lowe's ProServices, collection abundant of the hurricane-related growth, aggregation advisers said.
Appliances additionally saw double-digit comps, he said, added by online offerings. E-commerce sales saw an access of 33% in atone advance -- that's college than Home Depot's 19%. Articles purchased online are accurate by Lowe's centralized commitment capabilities and third parties, but it affairs to accessible its aboriginal absolute accomplishment centermost abutting year in Nashville.
"When I anticipate about the categories that abide to accomplish well, appliances, appearance accessories and melancholia alfresco active led the way as it relates to our online performance," Niblock said in the balance call.
"So the team's done a abundant job, bringing that acquaintance to activity and abutting it to our all-embracing omnichannel belvedere and active added cartage into our stores," he added.
Lowe's appear as allotment of its balance absolution that Arch Operating Administrator Rick Damron will be backward and Richard Maltsbarger, now the arch development officer, will booty his place. This move credibility to an appetence for change and advance from the board, Hood noted.
"Absent added information, the change implies to us that administration has not been absolutely annoyed with the beheading of the company's cardinal initiatives," he wrote.
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