Lowe’s says pandemic-fueled residence enchancment demand might cool in 2022

An employee organizes buckets for sale at a Lowe’s Cos. Store in Burbank, California.

Patrick T. Fallon | Bloomberg | Getty Images

Lowes The sales outlook disappointed investors on Wednesday, voicing concerns that the pandemic-induced boom in home improvement and decoration projects is cooling.

In pre-market trading, the company’s share even lost up to 4%. Then the stock rose slightly later on Wednesday morning as new data from home builders showed a great appetite for housing – even during a normally weak season and a period of inflation. That backdrop, coupled with Lowe’s comments about the possibility of market share gains, is helping the stock bounce back.

During an analyst meeting, Chief Financial Officer Dave Denton said the retailer expects its sales to outperform competitors and attract more home improvement deals. Still, he acknowledged that Lowe’s is preparing for a “modest sector retreat in 2022,” compared to a year of such high demand and sales, fueled by government incentives.

Lowe’s sales were fueled by Americans during the Covid pandemic. Even as some of these “nesting trends” declining, but sales were driven by the strong real estate market.

The company forecast that sales in the same business in fiscal 2022 could decrease or stay about the same by up to 3% compared to that fiscal year. Total sales in the same business for the coming year will be between $ 94 billion and $ 97 billion. According to Refinitiv, this was below analyst estimates of $ 97.64 billion.

Lowe’s estimates total sales for this fiscal year at approximately $ 95 billion, which is a week shorter than the next fiscal year.

For fiscal 2022, Lowe’s expects earnings between $ 12.25 and $ 13.00 per share. On average, according to Refinitiv, analysts expected Lowe to make $ 12.93 per share.

CEO Marvin Ellison said the company can continue to grow by introducing new private label brands, expanding and closing its e-commerce business a one stop shop for supplies that help the elderly grow older in their own home. For example, he said that it will debut a modern decor brand called Origin 21. He said it is expediting shipments of large and bulky purchases like home appliances with a new pilot in Florida and Ohio. This more efficient process increases bottom line and customer satisfaction, he said.

Together, he said, these efforts will “expand our share of the wallet for both home improvement and professional customers”.

Ellison said the retailer will also benefit from a favorable environment, including more cash in consumer savings accounts, historically low interest rates, rising home values ​​and an aging US home inventory. About two-thirds of the company’s sales come from repairs and maintenance, he said.

Also, Ellison said the pandemic has inspired people to invest more in their homes, from millennials first buying homes to baby boomers adapting older homes.

“There has been a longer term shift in the way consumers think about the importance of home ownership,” he said. “Our view of home is a haven that may have to serve several different purposes: residence, office, school, gym, and a meeting place for indoor and outdoor entertainment. And given the expansion of remote work, we expect a permanent increase in the repair and maintenance cycle. “

Regardless, the company announced that it plans to buy back approximately $ 12 billion worth of shares both this year and next.

At the close of trading on Tuesday, Lowe’s shares were up 57% in 2021. The stock closed Tuesday, down $ 252.46 1.86%. The company’s market value is $ 170.10 billion.

Do not count on a 2011-style LSU protection, Ed Orgeron says, however count on an enchancment: ‘Make them earn it’ | Sports activities

THE ANGEL – Thirty years ago, while coaching the defensive line in Miami, Ed Orgeron helped oversee a defense with the same goal in every game: keeping the opposing team to less than 13 points.

Back then the idea was sensible.

Defense dominated football, and that’s how the Hurricanes often hit their targets. In 1991 they allowed 8.3 points per game, an undefeated season that ended in a national championship. Most of the points scored against her were 20 from Penn State.

But Orgeron has seen football develop firsthand. Offenses move in a hurry and score dozens of points. The defense tries not to play on their heels. He understands that the idea of ​​keeping another team at 13 points came at a different age.

“I don’t think that’s realistic these days,” Orgeron said. “Violations earn points.”

That’s part of what makes LSU’s season goal of improving defensively after a historically bad year so difficult. Orgeron wants the Tigers to eliminate explosive plays and keep opponents from scoring as many points – but what makes sense now given the attacking football?

Since Orgeron trained in Miami, college offenses have changed.

Quarterbacks below the center are a rare sight. There are hardly any huddles. Defenders have all but disappeared and have been replaced by extra-wide receivers.

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Criminal offenses have evolved over the years. They implemented more vertical passes, used running quarterbacks, increased their pace between games, devised run-pass options, and spread out to stretch defenses across the field as they got more explosive.

“Everyone in college football is attacking the eyes of the defense right now,” said Georgia’s coach Kirby Smart, who served as the defensive coordinator for nine years. “

By and large, the defenses haven’t figured out how to counteract all of the changes.

In 2011, Alabama, the best defense in the country, allowed 8.2 points per game. LSU came second this year with 11.3 points per game. They met in the BCS title game.

Since then, Alabama’s lowest average score per game has been 11.9 in 2017.

But the Crimson Tide has also changed, the team is now defined by a spread offensive. Alabama finished outside of the top 10 in defense for the next three years. When winning the national championship last season, the Crimson Tide allowed 19.4 points per game.

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Orgeron knows how hard it is to stop crime these days, but the Tigers stayed well below their standards last year. The LSU gave up 34.9 points per game, had problems with communication and missed tasks under the then coordinator Bo Pelini.

After the LSU had reached the last place in the Football Bowl subdivision in the allowed yards per game (323), Orgeron replaced Pelini with coordinator Daronte Jones. Since joining the team, the players have said that he will connect better with them and wait for communication to fix one of LSU’s main problems last season.

“I have a feeling that this year this defense will be a lot better,” said Todd Harris, who was safe for the fifth year. “It’s easy. It’s easy. The boys can identify with it more easily. We can act fast. We can do plays.”

For his part, Orgeron hopes the simpler plan will help LSU eliminate explosive plays and the mental defects they cause.

The Tigers allowed 166 games of 10 yards or more last season, including 14 of 50 yards or more.

Orgeron believes that can improve.

He knows the defense can’t keep the teams down to 13 points or less in each game now, but he expects the LSU defense to play better. Football may have changed. He still doesn’t accept what happened last season.

“I want to take care of what we can take care of,” Orgeron said. “Eliminate the big moves, explosive moves. Eliminate the mental defects. And play defense. Run to the soccer ball, grab a hand and make them deserve it. “

What’s going to Topeka’s Capital Enchancment Plan cash go towards?

Topeka City Council is about to vote on an infrastructure investment guide that will set spending close to $ 500 million. The Capital improvement plan 2022-2031 sets schedules for when some roads will work while estimating which road projects might be carried out in the future.

Spending suggested in the plan ranges from road works to utilities.

“If you want to do something important, you have to have a plan,” said Councilor Neil Dobler. “It doesn’t mean the letter is obeyed, but when you have a plan you know where you are going.”

What are the road construction projects?

The CIP had a bottleneck in road projects about five years after the plan began, said city administrator Brent Trout. To address this problem, the city council will be pushing some construction work.

The Topeka Boulevard project from SW 29th to 37th will be postponed until 2023. An additional $ 500,000 per year will be allocated to the Complete Streets program for mill and overlay work, including mill and overlay work on southwest Urish Road from 21st Street to 29th Street; southwest 10th Street from Wannaker to Gerald; and southwest Huntoon Street from Executive to Urish.

More:The Topeka planning commission agrees to send the downtown master plan to the city council.

Mill and overburden projects will repair roads and give them a few more years of useful life, but this type of construction is more like rehabilitation than rebuilding.

The governing body is considering funding the projects included in the plan by temporarily increasing the loan interest rate. Typically, the city borrowed $ 9 million in bonds each year with interest from some councilors to raise them to $ 11 million.

Councilor Spencer Duncan said the bond rate is low and “money is cheap”. Duncan said there is no project to focus on in the CIP, rather he wants to make sure the city is prioritizing projects properly.

More:Topeka city guides say they have a busy road building season ahead of them. Here are 12 of the projects.

He said Urish Road had deteriorated badly and was glad to see it was planned for work.

Councilor Karen Hiller wants to try to complete the road projects without raising the bond limit. She said bonds are usually borrowed in the hope that there will be a new source of money to repay the bonds. For example, a city’s tax base expands, attracting more people to repay the money.

“I want to do everything, but I want to minimize the costs for taxpayers,” said Hiller. “You have to be a little more careful looking at who these other people are who are going to be paying in the future. What have we just done when we or our children pay higher taxes? “

How is some of the money budgeted?

Topeka’s capital improvement plan will invest nearly $ 120 million in road projects and $ 138 million in utility projects between 2022 and 2026, the document says. Road and utility projects together account for 78% of budgeted expenditure between 2022 and 2026.

The 187-page draft online lists dozens of projects and pools of money the city will fund, making it difficult to make a comprehensive list of notable projects. However, a program of interest could help the city’s fire stations.

More:The Topeka Fire Commission recommends building a new fire station. But how is it financed?

The city’s facility improvement, repair and maintenance program is a fund that could be topped up if the CIP is approved in its current form.

FIRM will have around $ 1.7 million in 2022, but will rise to around $ 2.2 million between 2023 and 2026, according to CIP.

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The maintenance fund could be an integral part of the city’s plans for a future fire station. The Topeka Fire Commission recently completed its multi-month process of reviewing fire coverage in the city.

The commission recommended that the city council build a new fire station with renovation work on all fire stations currently funded. FIRM is funding renovations to all city buildings, but the members of the commission hoped that more attention could be paid to the fire stations.

Will there be changes at the meeting of Topeka City Council on April 6th?

Forelle said he hoped the plan would be approved at the first meeting. He said no council members had expressed major concerns about the document and expected only minor adjustments to the overall plan next Tuesday.

Hiller said she hoped the plan better spelled out how some money will be divided. The CIP currently budgets money into a handful of funds specifically designed for one type of project, e.g. B. Money only for curbs and gutters or alleys.

More:Topeka City Council approves the plan to invest in affordable housing across the city

The funds don’t tell you what projects will be done in the near future that she hopes will change.

Duncan said he will continue to campaign for the Topeka Performing Arts Center. He said the building has “good bones” but would like to see improvements to the installation and electrical system.

“Nobody likes to talk about it, it’s not cool, but it is (a necessity),” he said.

How can someone provide feedback on the capital improvement plan?

Everyone the Capital Journal spoke to said any comments on the plan should be directed to your respective councilor.

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The city has programs in place to ensure that all roads are assessed every few years. However, council members said it was best to share your concerns directly. Dobler said it was best to contact your councilor before voting so that it has time to act on the request.

“It is vital to have a plan,” said Dobler. “If you don’t know where you are going, any road will take you there.”