Lowe's Closes Gap with Home Depot in Contractor Sales

2 months ago

"We go to Lowe's, remember, ticker elo w up as much as 6%. Home Depot yesterday, they said consumers were pulling back on these big ticket items that pushed them to cut their full year profit target. But Lowe's reported profit topped expectations, so they did better positive same store sales growth second quarter in a row. A big thing for them is that pick in online sales growth from professional contractors and they've really been focusing on this. If you remember, they had that, you know, more than $8 billion cash deal to buy out drywall company foundation building materials, and that deepened their market position with contractors. And the reason contractors are important because they tend to buy more and they spend more frequently compared to every day. Joe Like me who walks in the store. Right. Or John Tucker. Let's talk about John Tucker right now. And what Drew reading said from Bloomberg Intelligence is Home Depot does have a higher percentage of its revenue come from those professionals builders as Lowe's. So I guess Lowe's is trying to close that gap a little bit. They've moved over to Third Avenue, and I can tell you is that the professionals, as you call them, are lined up and fulfilled."

The commentary highlights Lowe's strong Q2 performance with profit topping expectations and improved same store sales growth. The focus is on the company's strategic push to boost online sales among professional contractors, bolstered by a significant acquisition in drywall materials. This move is viewed as an effort to close competitive gaps with Home Depot, which traditionally garners a higher share of contractor business.

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