Lowe's Delivers Solid Comps but Weak Pricing, Leading to Reduced Profit Outlook for 2019
Wide-moat Lowe’s bucked its long-term trend, outperforming Home Depot on first-quarter comps; it delivered 3.5% same-store sales growth in the period, ahead of our 3% estimate. However, Lowe’s struggled with profitability, with higher costs, ineffective legacy pricing tools, and changes to the merchandising group hindering the gross margin, which contracted 165 basis points to 31.5%. While operating expenses were a bit better than we anticipated at 23% of sales (versus 25% in the year-ago period...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.
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.
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