In-line Q2, FY18 guidance lowered
LOW delivered a broadly in-line quarter, with comps ~20bps below consensus and margins in-line, although buy side expectations may have been higher, given HD's strong results and the broader industry momentum. FY18 guidance was lowered however, with comps now expected to be +3.0% (prior +3.5%), as the new CEO focuses on rationalising inventory. LOW also announced that it is closing its 99 Orchard Supply stores, incurring $620m-$705m of costs this year. This is seeing margins decline 180bps YoY (prior -40bps), with FY18 GAAP EPS guidance lowered to $4.50-$4.60 (from $5.40-$5.50). A slightly messy quarter, but early evidence of Ellison trying to implement significant change.Lowe's Companies is a home improvement retailer. The company provides home improvement products in lumber and building materials, appliances, seasonal and outdoor living, tools and hardware, fashion fixtures, rough plumbing and electrical, paint, millwork, lawn and garden, flooring, and kitchens categories. The company provides installation services through independent contractors in product categories, including appliances, flooring, kitchens, lumber and building materials, and millwork. The company also provides extended protection plans for various products within the appliances, kitchens, fashion fixtures, millwork, rough plumbing and electrical, seasonal and outdoor living, and tools and hardware categories.
Formed in 2003 by an established team from Cazenove, one of the most respected investment banks in the UK, Atlantic Equities conducts and publishes fundamental, bottom up research on mid and large cap US companies.
Atlantic provide order execution through a wide range of DMA products and algorithmic trading suites.
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