Lowe's is Closing Stores -- Can it Keep Up With Home Depot? | Summary and Q&A

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Lowe's is Closing Stores -- Can it Keep Up With Home Depot?

TL;DR

Lowe's third-quarter results were disappointing, with a cut in their forecast and the closure of several stores; however, investors may find confidence in the fact that Target, despite higher costs, maintained their fiscal year guidance.

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Questions & Answers

Q: How did Lowe's third-quarter performance compare to Home Depot's?

Lowe's third-quarter results were not as strong as Home Depot's, leading to a decrease in stock value for Lowe's.

Q: What steps has Lowe's taken in store closures?

Lowe's is closing 31 stores in Canada and 20 stores in the U.S., with most of the stores being eliminated within ten miles of another store. This will help improve the remaining stores' comparable numbers.

Q: Does Lowe's need to focus on delivering good results next year?

Yes, Lowe's needs to deliver positive results next year after making decisions to close stores and manage their inventory efficiently.

Q: What factors are affecting the housing market and Lowe's business?

The housing market is showing signs of softening, with a slowdown in homebuilder confidence. Additionally, the cost of lumber has been increasing due to tariffs and the importation of lumber from Canada.

Summary & Key Takeaways

  • Lowe's third quarter results were not on par with Home Depot's and they also revised their forecast, leading to a decrease in stock value.

  • Lowe's is closing stores in both Canada and the U.S., signaling a contraction in their store count.

  • While these decisions may lead to improved efficiency, they will also result in a significant charge to earnings.

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