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.

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

$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.

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.

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

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

  • Is the homebuilder rally for real?

    Shares of homebuilders rallied Wednesday after Toll Brothers reported strong quarterly results and an industry group said home sales rose in July.

    The nation's leading luxury homebuilder reported a 46% jump in net income to $61.6 million in the quarter ended July 31. Toll Brothers also said new contracts rose 57%, and its contract backlog grew 44% during the quarter.

    Toll Brothers (TOL) stock gained nearly 4% Wednesday. Shares of Hovnanian (HOV), MORE

    - Aug 22, 2012 1:55 PM ET
  • Best of StockTwits: $DELL-uged by bad news

    Dell (DELL) is helping lead the market lower. Maybe housing finally has bottomed? And one trader is skeptical of Expedia's (EXPE) ability to buck the bearish trend today.

    mojoris1977: just because David Einhorn and Whitney Tilson like $DELL doesn't mean you should just blindly follow them in. $XRX

    TrendRida: $DELL takes the meaning of value trap to a new level...

    firstadopter: $DELL call: seeing consumers switching IT spend to alternative mobile devices (Can MORE

    - May 23, 2012 1:39 PM 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! Yes, Urban Outfitters may be finally turnings things around. But $URBN up 17%? Seems a bit excessive, no?
Most Popular
Powered by VIP.