Home Depot victorious in American DIY battle

Home Depot, leader in the American DIY market, is slowly leaving Lowe's behind. For the second time in three months, the latter had to issue a profit warning while the former announced to expect higher profits. 

Lowe's low quarterly results

Lowe's results were below expectations in the second quarter of 2011. Turnover rose 1.3% to 10.1 billion euro, but on a like-for-like basis, sales went down 0.3%. Profits were marginally lower than one year ago, dropping from 579.3 to 578 million euro. 

 

The group had to close seven unprofitable shops and lowered its expectations for the whole financial year (ending on 3 February) from 4% to only 2%. The only growth the chain really expects comes through the internet, highlighted by the opening of the Spanish language version of their website just this week. Another source of hope for Lowe's is the redecoration of its stores.

Home Depot growth causes Lowe's demise

Lowe's's downfall is caused largely by Home Depot's fierce competition, according to analysts. The latter was larger than Lowe's for the ninth quarter in a row, rising 4.3% worldwide. Total turnover was 14 billion euro, rising 4.3% worldwide. Net profits rose too, from 829 to 847 million euro. Unlike its main competitor, Home Depot confirms its expected growth of 2.5%.

 

Both Home Depot and Lowe's complain about the low consumer confidence in the US, causing many Americans to cancel their renovation plans. However, Home Depot did profit from spring sales and the damage caused by tornadoes. 

Home Depot, leader in the American DIY market, is slowly leaving Lowe's behind. For the second time in three months, the latter had to issue a profit warning while the former announced to expect higher profits. 

Lowe's low quarterly results

Lowe's results were below expectations in the second quarter of 2011. Turnover rose 1.3% to 10.1 billion euro, but on a like-for-like basis, sales went down 0.3%. Profits were marginally lower than one year ago, dropping from 579.3 to 578 million euro. 

 

The group had to close seven unprofitable shops and lowered its expectations for the whole financial year (ending on 3 February) from 4% to only 2%. The only growth the chain really expects comes through the internet, highlighted by the opening of the Spanish language version of their website just this week. Another source of hope for Lowe's is the redecoration of its stores.

Home Depot growth causes Lowe's demise

Lowe's's downfall is caused largely by Home Depot's fierce competition, according to analysts. The latter was larger than Lowe's for the ninth quarter in a row, rising 4.3% worldwide. Total turnover was 14 billion euro, rising 4.3% worldwide. Net profits rose too, from 829 to 847 million euro. Unlike its main competitor, Home Depot confirms its expected growth of 2.5%.

 

Both Home Depot and Lowe's complain about the low consumer confidence in the US, causing many Americans to cancel their renovation plans. However, Home Depot did profit from spring sales and the damage caused by tornadoes. 

Questions or comments? Please feel free to contact the editors


Kingfisher experiences another turnover drop

17/08/2017

DIY group Kingfisher has experienced yet another disappoiting quarter: the British-French group suffered setbacks in both its home markets and the restructuring plan is also weighing down its results.

Sizeable profit drop for Geberit

17/08/2017

Swiss sanitation specialist Geberit has had a disappointing first semester of 2017, in which its profit dropped about 20 %. Turnover also slumped, but only slightly.

Intergamma: departure largest shareholder sparks turmoil

01/08/2017

Irish group CRH, which owns nearly 50 % of DIY Intergamma’s shares, wants to sell those shares, but the other shareholders cannot find an appropriate solution.

Strong Dutch growth for Hornbach

09/06/2017

German DIY chain Hornbach’s turnover and profit grew a lot in the past fiscal year, which ended 28 February 2017. Particularly its Dutch division performed very well.

Cooperative Menouquin joins Hagebau

10/05/2017

Belgian’s largest cooperative in tools, hardware and DIY, Menouquin, will join German Hagebau, a move designed to help Menouquin grow.

Bauhaus opens second Dutch store

05/04/2017

On 14 April, DIY store chain Bauhaus will open its second Dutch store in Twente. Its 15,000 sqm store will be located in the Westermaat business park in Hengelo.

Back to top