Lowe's Beats Profit Estimates as Online, Pro Sales Grow

Watch Lowe's Beats Profit Estimates as Online, Pro Sales Grow - Bloomberg on Dailymotion

Transcript

00:00Low shares are climbing. They did, though, trim their outlook, but they reported strong

00:04online sales, growing demand for professional contractors, a stark difference from rival

00:09Home Depot, who had earnings yesterday. Bloomberg Intelligence home builder analyst Drew Redding

00:14joins us for more. Drew, how much of this is just the fact that Lowe's was down 11 percent

00:20heading into this earnings this year, that it was down yesterday off the back of Home Depot,

00:24so expectations were incredibly low. Hi, Danny. I think you make a good point,

00:29and that's certainly part of it. The bar had been lower coming into the quarter. So I think this

00:36was really, you could characterize this as better than feared results, particularly in light of what

00:41we saw from Home Depot. As you alluded to, they did trim their four-year same-store sales guidance.

00:47Now they're looking for flat comp sales versus flat to up 1 percent. So that would imply that 4Q is

00:53relatively flat-ish. First consensus was looking for about a 1 percent gain. So big picture, I think

01:00that Lowe's is still facing some of the same challenges that Home Depot is, whether it's challenges

01:06among the consumer and housing in particular, which just hasn't re-accelerated despite the pullback

01:12and mortgage rates.