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Monday, May 18, 2009

Lowe's: "Pressures on consumers remain intense"

by Calculated Risk on 5/18/2009 08:41:00 AM

Press Release: Lowe's Reports First Quarter Sales and Earnings Results

"The economic pressures on consumers remain intense, and bigger ticket projects continue to be postponed as wary home improvement consumers watch the economic climate and housing market dynamics very closely," [Robert A. Niblock, Lowe's chairman and CEO said] "But, as spring arrived, we saw relative strength in smaller, outdoor projects."
From the WSJ: Lowe's Earnings Slide 22%, Narrows Revenue Outlook
[Lowe's] now sees [fiscal-year] revenue ranging from down 2% to up 1%, from February's view of down 2% to up 2%. It still sees same-store sales down 4% to 8%.
A 4% to 8% decline in same store sales is a very difficult environment and indicates that home improvement remains very weak.