Report
Jaime Katz

Lowe's operational changes set to fortify its brand intangible asset, but executional risk remains.

Wide-moat Lowe’s fourth-quarter top-line results were solid, with same-store sales of 4% holding overall sales declines to just 1.8%, as the firm lapped a 13-week quarter in the year-ago period (like-for-like sales would have risen 4%). However, Lowe’s couldn’t escape operating margin compression of 130 basis points, to 7.1%, hurt mostly by its ability to take price and a one-time cash bonus payout stemming from tax reform. The management team utilized the call to tout its new, six-pronged strat...
Underlying
Lowe's Companies Inc.

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.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Jaime Katz

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