The Buzz

All markets and investing news all the time

Lowe's struggles against Home Depot

May 22, 2013: 1:14 PM ET

Click the chart to track shares of Lowe's.

As the housing market heats up, so is competition among home improvement retailers.

A day after Home Depot (HD) delivered earnings and revenue that were much better than forecasts and raised its guidance, Lowe's (LOW) reported a weaker-than-expected quarterly profit for the first-quarter on declining sales.

Lowe's CEO Robert Niblock blamed "cooler than normal temperatures and greater precipitation" for the soft sales figures. In contrast, Home Depot CEO Frank Blake said his company continued to "benefit from a recovering housing market" despite the fact that there was "less favorable weather" during the quarter.

The contrasting results gave traders on StockTwits plenty to chat about.

 LDrogen
$HD really took $LOW to school this quarter, completely divergent reports.

 silverjet2
$LOW needs to improve its shopping experience rather than blame the weather for its missed earnings report

That's a good point. It's not the first time Lowe's has underperformed Home Depot, so bad weather isn't the primary problem. Same-store sales, which measure sales at stores open at least a year and are a key gauge of health among retailers, have been weaker at Lowe's than they have been at Home Depot each quarter for the past several years.

 retail_guru
Lowe's is just plain lucky direct peer is Depot. $HD stellar performance keeps dragging $LOW stock up with it, despite some seriously bad Qs.

A lucky break indeed? Despite the lackluster performance, shares were of Lowe's rose 1% Wednesday, just behind Home Depot's 3% increase. Year-to-date, Home Depot shares of climbed almost 30%, while Lowe's shares are up a healthy 20%.

Related: The market doesn't lie. Housing recovery is real

In addition to the two home improvement retailers, Toll Brothers (TOL) was also in focus Wednesday after announcing strong results, thanks to accelerating demand for houses and higher home prices.

Shares of the luxury homebuilder jumped 7% Wednesday.

 timeday
$TOL rocking housing helping banks rip higher big hedge funds own the BANKS will rip higher $SPY

lamonicabuzz
Toll House Rally. Builder $TOL reports profits and revenue that beat forecasts. More good news for housing. $TOL up 4% pre-market.

  • Lowe's earnings, stock keep improving

    Lowe's (LOW) impressed investors with third quarter results Monday that showed the home improvement retailer is following its own slogan to "never stop improving."

    Third quarter profits jumped 76% from a year ago. Investors, in turn, pushed the stock up nearly 7% Monday. That had some traders on StockTwits excited.

    elliottrexler: $LOW. Is an increase in same store sales oversees an indication of what's to come? #Lowes Beats estimates

    Still it's unclear MORE

    - Nov 19, 2012 12:35 PM ET
  • Let's sell something together? Lowe's dips on earnings

    Is the housing market really recovering? If you look at the latest results from Lowe's (LOW), you'd be tempted to answer no. But Lowe's top rival, Home Depot (HD) reported a pretty strong quarter and issued good guidance last week. Shares of Lowe's fell more than 4% in early trading Monday.

    It seems that housing is slowly but surely rebounding. The problem with Lowe's seems to be that Home Depot is MORE

    - Aug 20, 2012 10:11 AM ET
  • Paul Ryan owns today's top Dow and S&P 500 stocks

    The Paul Ryan stock portfolio continues to shine. Two stocks that the Republican vice presidential candidate owns - Home Depot (HD) and Estee Lauder (EL) -- spiked Tuesday after both companies reported better-than-expected quarterly results.

    As of mid-morning Home Depot was up 3%, making it the best performer in the Dow. And Estee Lauder's shares shot nearly 8% higher, making them the top gainer in the S&P 500.

    Ryan seems to have MORE

    - Aug 14, 2012 10:37 AM ET
Fear & Greed
Sponsored by

To view my watchlist

Not a member yet?

Sign up now for a free account
Stupid Stock Move of the Day
#StupidStock Move of the Day! $LAKE down. But only to $14.60? Raising $ in private placement @ $10/share. Why should you pay more than that?
Powered by WordPress.com VIP.
Follow

Get every new post delivered to your Inbox.

Join 241 other followers