Lowe’s will open mini Petco outlets inside some shops

Lowe’s is opening petco stores in some of its stores as part of a pilot program. The first is scheduled to open in Texas in February.

Source: Petco

lowes will soon be testing a new offer: A Petco Shop the stores where customers can buy dog ​​food and kitty litter, and even visit a vet while shopping for paint and other materials for home projects.

The two retailers announced a deal Thursday to test the store-in-store locations. The first will open near San Antonio in early February, with 14 additional locations planned in Texas, North Carolina, and South Carolina by the end of March.

The companies declined to share financial terms or the length of the deal.

Lowe’s and Petco have been beneficiaries of the pandemic as Americans took on do-it-yourself projects and adopted pets while spending more time at home. However, retailers could face a more challenging backdrop in the coming months if consumers feel pressured by rising inflation or decide to spend a larger chunk of budget on vacations and nights out rather than pet supplies and home projects.

Lowe’s has been looking at new product categories to keep sales growing while benefiting from a strong real estate market. It added more home decor to its website and stores. It started an initiative to sell and install items that enable seniors to grow old in their own four walls. And it began piloting fitness equipment like treadmills, rowers, and free weights in about 20 of its stores. It already carries some pet-related items, like dog beds and pet-safe rugs.

For Petco, the curated version of its stores is a way to engage more shoppers and potentially get them to visit its larger stores and website as it competes with online players such as Tough.

Nick Konat, Petco’s chief merchandising officer, said he expects the stores will particularly appeal to DIY-savvy millennials. During the pandemic, many of these 20- and 30-year-olds have been leaders “Nesting” trendswhen they bought houses or moved to bigger towns, adopted cats or dogs — and in some cases treated pets as a “trial run” before having children, he said.

“They are high-spending customers and they really care about their pet like family,” he said. “And they’ve done the same to their homes, with many of them being new homeowners or new renters.”

Each shop will feature Petco’s cat and dog logo and merchandise, including some of its exclusive brands such as food brand WholeHearted and fashion brand Youly, as well as national brands. It will feature more than 700 items that customers can buy online and pick up in store if they live near a Lowe’s store that is part of the pilot. Some stores also offer services from visiting veterinarians and pet professionals, including vaccinations, microchipping, prescription pest prevention, and mobile grooming.

The store-in-store will vary in size, but the first location will be about 1,000 square feet and will be in front of the store, said Bill Boltz, Lowe’s executive vice president of merchandising.

The stores will be staffed by a Petco employee, in addition to those at Lowe’s, Konat said.

Other retailers have similar partnerships. aim made a deal with Ultimate beauty to opens curated stores in hundreds of its big box stores — and has similar shop-in-shops Apple and Disney at selected locations. cabbage signed a contract with Sephora to have its beauty salons in stores. Kroger will wear something bed bath beyond Goods in selected stores and Macy’s is Toys R Us stores open.

As of Wednesday’s close, shares of Lowe and Petco are both down about 12% this year. Lowe’s and Petco shares closed Wednesday at $228.10 and $17.43, respectively. Lowe’s shares are up nearly 31% over the past 12 months, giving it a market cap of $153.68 billion. Petco’s shares are down about 37% over the past 12 months, giving it a market value of $5.27 billion.

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.

Lowe’s (LOW) Q3 2021 earnings beat

A customer pushes a shopping cart to the entrance of a Lowe’s store in Concord, California on Tuesday, February 23, 2021.

David Paul Morris | Bloomberg | Getty Images

Lowes On Wednesday, it exceeded analysts’ expectations for fiscal third quarter results as the company saw a surge in home improvement and online sales.

The home improvement retailer raised its forecast, saying it expects sales of $ 95 billion. It had previously forecast sales of $ 92 billion.

In pre-trading hours, stocks rose nearly 4%.

Here’s what the company reported for the third fiscal quarter ended October 29, versus Wall Street expectations, based on an analyst survey by Refinitiv:

  • Earnings per share: $ 2.73 versus $ 2.36 expected
  • Revenue: $ 22.92 billion versus $ 22.06 billion expected

Lowe’s profit rose $ 1.90 billion, or $ 2.73 per share, from $ 692 million, or 91 cents per share, a year earlier. The results surpassed what analysts surveyed by Refinitiv had expected to be $ 2.36 per share.

Net sales rose from $ 22.31 billion last year to $ 22.92 billion, above analysts’ expectations of $ 22.06 billion.

Lowe’s sales in the same store increased 2.2% for the three month period. According to StreetAccount, that was a clear difference to the analysts forecast of a decline of 1.5%.

A strong housing market has boosted sales for Lowe’s and its rival. Home depot. Even as the prices of houses and building materials go up, Americans keep buying. Builders’ trust increased this week, because of the great appetite for new single-family homes.

The dealers also saw customers Shop for paint, pillows, and more as they spent more time at home tackling do-it-yourself projects during the pandemic.

With consumers on the move again, Lowe’s and Home Depot are increasingly trying to attract the home improvement workers who homeowners hire to do renovations or upgrade their kitchens.

Home Depots the third quarter result reflected this shift, As customer transactions decreased, the average tickets increased 12.9% to $ 82.38. The retailer said the momentum continued into the fourth quarter, with sales starting a little above the third quarter level.

Under CEO Marvin Ellison, Lowe’s stepped up its efforts to attract professionals because they are more persistent and more money-conscious. Ellison said in a press release that the company’s sales to professionals rose 16% in the third quarter. He said sales on the website were up 25%.

Lowe plans to buy back $ 3 billion of shares in the fourth quarter, bringing total buybacks to $ 12 billion for the year. In the last quarter, it repurchased 13.7 million of its own shares for $ 2.9 billion.

Read the company’s press release here.

Residence Depot, Lowe’s flip focus to dwelling professionals to propel development

Home Depot has a flatbed distribution center in the Dallas area. It is opening more facilities across the country to handle the bulk of homeworkers’ orders.

Melissa Repko, CNBC

In a huge warehouse in Dallas, a fleet of forklifts transports large and bulky home improvement supplies from drywall and concrete to wood. Freight wagons cross the huge facility on a railway line. Trucks prefer, ready for loading.

Home depot‘s facility – which could accommodate about 14 professional soccer fields – is helping the company expedite store shelves to be replenished and purchases delivered to customers’ doors. Getting more business from electricians, remodelers, and other home improvement enthusiasts, especially those who place large orders, is an important part of the retailer’s strategy.

The pandemic has fueled a hot real estate market and a penchant for “nesting”. Tailwind for Home Depot and Lowes. As Covid-19 cases drop in the US and homeowners spend more time on planes or at parties, the biggest business opportunity is home improvement sales growth.

Home Depot has historically sourced more of its business from these more lucrative and frequent buyers, but Lowe’s is also trying to attract more professionals. About 45% of Home Depot’s total sales come from professional customers versus about 20 to 25% at Lowe’s, the companies say.

Over the past few months, executives at both companies have said they see a lot of catching up to do on professional projects as people are comfortable inviting contractors into their homes and eating and traveling more rather than a list of do-it-yourself Check off projects.

“They all have very good books when they talk to the professionals,” said Ted Decker, president and chief operating officer of Home Depot. “You all have arrears.”

Home improvement retailers need to ensure that they have sufficient inventory to meet this demand, even when the supply chain has challenges – like congested ports. Delay deliveries.

A customer wearing a protective mask loads wood at a Home Depot store in Pleasanton, California on Monday, February 22, 2021.

David Paul Morris | Bloomberg | Getty Images

On the hunt for bigger customers

For years, Home Depot has positioned itself as a convenient alternative to ordering from specialist retailers for professionals. It has doubled with that a $ 1.2 billion supply chain investment, This includes the opening of a network of flatbed distribution centers like the one in Dallas.

Four have so far opened in Dallas, Baltimore, Miami and Newark, New Jersey, and three more will open later this year in Atlanta, Houston and Tampa, Florida. Each facility can hold a large amount of inventory, such as B. hold a larger selection of shingles and deliver orders directly to a project location.

With the massive facilities, Decker said, Home Depot is chasing down larger professionals who only occasionally shop with the company.

“As a sole proprietorship or a father-and-son team, we may have practically all of her wallet,” he said. “The bigger the professionals get, the more we are, however, more of a substitute merchant. They get their main material requirements for a larger order from one of these unequal competitors.”

Home Depot recently started its pro business with. expanded the takeover of HD Supply, a major distributor of home appliances, plumbing, and electrical appliances, for approximately $ 8 billion. It had previously spun off the company.

Decker said Home Depot expects the biggest year-over-year growth numbers to come from professionals in the coming quarters, especially after a year of construction sites closed, consumer remodeling postponed, and DIY projects skyrocketing.

Pro-side growth of the Home Depot business outperformed the DIY side for the first time in a year in the first quarter that ended May 2, Decker said. Combined sale in the same store grew 31% in the quarter.

At Lowe’s, Pro sales growth also outpaced DIY sales in the first quarter, with growth of more than 30% year-over-year. Combined with DIY, same store sales grew nearly 26% in the quarter.

A customer pushes a shopping cart to the entrance of a Lowe’s store in Concord, California on Tuesday, February 23, 2021.

David Paul Morris | Bloomberg | Getty Images

“The pick-up truck professional”

For Lowe’s, resurrecting the professional business was part of CEO Marvin Ellison’s turnaround plan. He said Lowe’s sweet spot was “the pick-up truck professional” and not big corporations.

It has introduced services and perks similar to what Home Depot already had – such as: B. Tool rental and a member-only loyalty program. New brands have also been added and store goods rearranged so that the items needed for the same project are in one place rather than scattered across aisles, saving professionals time.

Fred Stokes, senior vice president of Lowe’s Pro Sales and Services, said these recent investments are already paying off. In a statement, he said Lowe’s had attracted new professionals and increased the wallet share among the existing ones. He said he has “heard from many of our professionals that they appreciate other changes they see”.

A construction worker is remodeling a house in Cambridge, Massachusetts.

Suzanne Kreiter | The Boston Globe | Getty Images

A fragmented market, a growing cake

Lowe’s is gaining ground but is still catching up, said Michael Baker, managing director and retail analyst at DA Davidson. He said the entire difference in sales per store for the two home improvement retailers was due to the gap in the size of the professional companies.

DA Davidson estimates that Home Depot and Lowe’s revenue per average store in 2020 were $ 57.6 million and $ 45.4 million, respectively. That’s because of the huge gap in Pro-per-store sales: $ 24.2 million at Home Depot versus $ 9.5 million at Lowe’s.

Still, he said, Lowe has a better chance. He ranks Home Depot stock neutral, with a target price of $ 317 – below its closing price of $ 322.70 on Friday. On the flip side, he rates Lowe’s stock as a buy and has a target price of $ 217, above Friday’s close of $ 195.71.

“Lowe’s DIY business is as strong as Home Depot’s,” said Baker. “So in theory there is no reason why your business shouldn’t be pro-business. You just have to invest and build it over time.”

Brian Yarbrough, senior research analyst at Edward Jones, said the competition between the two was not a “zero-sum game.” Home Depot and Lowe’s have a diverse mix of competitors, ranging from local mom and pop hardware stores to specialty retailers like wood warehouses and power utilities. This fragmented market enables them to attract new customers and poach them from one another, he said.

Plus, Home values ​​are rising and that is inspiring renovation projects. Baker said this means a bigger pro market for both retailers. “The overall cake is growing,” he said.

Lowe’s (LOW) earnings Q1 2021 beat estimates

A customer pushes a shopping cart to the entrance of a Lowe store in Concord, California on Tuesday, February 23, 2021.

David Paul Morris | Bloomberg | Getty Images

Lowes On Wednesday it announced that fiscal first quarter sales were up 24%, exceeding Wall Street expectations as consumers continued to invest in their homes and sales to professionals such as contractors picked up again.

The hardware store said the momentum continued into May. Based on these trends, the company has exceeded its previous revenue forecast of $ 86 billion for this fiscal year.

Despite the strong quarter, stocks in premarket trading fell 2.4% as investors feared real estate market challenges such as labor shortages and rising lumber prices.

The company reported for the first quarter ended April 30, versus Wall Street expectations based on an analyst survey conducted by Refinitiv:

  • Earnings per share: $ 3.21 versus $ 2.62 expected
  • Revenue: $ 24.42 billion versus $ 23.86 billion expected

Lowe reported net income of $ 2.33 billion or $ 3.21 per share versus $ 1.34 billion or $ 1.76 per share. one year ago. The results exceeded the analysts surveyed by Refinitiv expected $ 2.62 per share.

Net sales rose from $ 19.68 billion last year to $ 24.42 billion, exceeding analysts’ expectations of $ 23.86 billion.

Lowe’s sales in the same store rose 25.9% for the quarter.

At the rival Home DepotSales rose nearly 33% in the first quarter, but the retailer declined to provide a forecast. Shares fell around 1% on the Wednesday before the IPO.

Both do-it-yourselfers have benefited from the booming real estate market, but are also facing challenges. The real estate market remains hot, but a labor crisis, rising lumber prices and land shortages are making it difficult for construction to keep up. House construction of single-family houses fell more than 13% in April Compared to March, the US census reported Tuesday. This is the sharpest drop since April 2020, when the pandemic brought the economy to a standstill.

Also in the financial year Lowe’s competes against large numbers. It opened stores as a major retailer during last year’s lockdowns. Because customers stayed at home, they took on home improvement projects, replaced kitchen appliances, and built up their lawns or backyards. Some investors are skeptical that people will keep eating, going on vacation, and spending their time in other ways.

As of Tuesday’s close of trading, Lowe’s shares are up about 20% so far this year. The stock closed at $ 192.75 on Tuesday, bringing the market value to $ 138.24 billion.

Read the full press release here.

Fernandez claims French Moto2 win in commanding type as Lowes retires – Motorsport Week

Raul Fernandez dominated the French Grand Prix, taking his second Moto2 win of 2021 when title contender Sam Lowes was out.

Pole Fernandez fell behind Marco Bezzecchi from the start but managed to stay in second place at the end of the opening tour despite soon coming under pressure from an accusing Joe Roberts.

The American relieved Fernandez from second place in the encounter before turning his attention to leading Bezzecchi, although his chances of victory would be ruined if he braked too late at Turn 9 and lost the front of his Italtrans-led Kalex trying to evade the leader and eliminated him from the race.

Fernandez soon hit the back of Bezzecchi as he tried to regain the lead. The rookie took a strong step on the Italian to snatch the initiative at Turn 11. The Ajo racer quickly began to move forward only with fresh air.

He managed a lead of just over a second for the majority of the remaining tours, despite coming under pressure from teammate Remy Gardner in the final laps after the series leader managed to push Bezzecchi back to third after having his tires consistently good had cared for.

He reduced Fernandez’s lead to just under 1.5 seconds, and there were barely half a dozen editions left, although the former reacted calmly and was clearly able to withdraw as the race neared its climax, allowing him to roll over the last lap Checkered flag 1,490 in front of Gardner.

Fernandez’s second success in just his fifth start in the intermediate class puts him just one point behind Gardner in the championship standings, while Bezzecchi, who completed the podium after leaving the leading duo in the final stages, was 17 points behind the leader in third place overall Aussie is 17 points behind Gardner.

Tony Arbolino and Bo Bensneyder showed strong performances to get their best Moto2 placements in fourth and fifth. The pair were more than 16 seconds behind in the close battle for sixth place.

Marcel Schrotter ultimately prevailed as the winner of the war when he narrowly held back rookie Ai Ogura from Honda Team Asia, while Fabio Di Gianantonio finished eighth for long laps despite a double penalty.

The Gresini racer forced Hector Garzo into early retirement when he was fighting for sixth place early on at Turn 11. Di Gianantonio received a long round for his part in the incident.

The Italian crossed the white line on the inside of the penalty loop as he entered, but forced him to serve another soon after, leaving him a low 14th place at that point.

Simoni Corsi had a positive appearance for MV Agusta when he finished ninth ahead of Jorge Navarro. The speed up ace Somkiat Chantra denied a top ten result when he died.

Lowes seemed to have had strong pace from the start, despite a sluggish start that dropped him from 10th to 12th place. The Brit pursued Xavi Vierge for sixth place in a couple of laps.

He attempted an overly ambitious move on the Petronas SRT rider at Turn 8 and lost the front of his Marc VDS machine, getting both of them out of the contest Lowes, which is now 22 points away from leading the series.

Cameron Beaubier was another player to lose a great result after fighting from 24th on the grid to sixth. The American Racing driver crashed at Turn 3 with only a handful of circulations left.