Rivalry Watch: HD vs. LOW
In the closely watched metric of U.S. comp-store sales, The Home Depot increased its lead over Lowe’s in the fourth quarter: 5.3% to 2.6%.
In other tales of the tape from the quarterly head-to-head of the two biggest rivals in home improvement, Home Depot’s $25.8 billion in sales declined from the prior year’s fourth quarter, which benefitted from an extra week. Lowe’s $16.0 billion in fourth quarter sales marked a 2.4% increase.
The bottom line comparison shows a big advantage for the orange vests. The $2.48 billion in net income for Home Depot outdistanced Lowe’s, with $509 million. Still, Lowe's said its profitability exceeded expectations, and the fourth quarter showed a massive swing from the prior year's fourth quarter net loss of $824 million.
Looking ahead to 2020, Home Depot’s forecast for comp-store sales of 3.5% to 4.0% is slightly above the range forecast by Lowe’s, 3.0% to 3.5%.
Forecasts for total sales growth are higher for Home Depot, 3.5% to 4.0%, compared to Lowe’s, 2.5% to 3.0%.
Home Depot finished the fourth quarter with 2,291 stores, Lowe’s had 1,977.
Both companies share an optimism for the health of the consumer, according to statements in each earnings release.
Lowe’s CEO Marvin Ellison said the company is "well positioned to capitalize on solid demand in a healthy home improvement market.”
At Home Depot, CEO Craig Menear pointed to “a strong finish to the year as our fourth quarter results reflect strength in our core business, solid execution around our holiday events and the overall health of the consumer.”
In other tales of the tape from the quarterly head-to-head of the two biggest rivals in home improvement, Home Depot’s $25.8 billion in sales declined from the prior year’s fourth quarter, which benefitted from an extra week. Lowe’s $16.0 billion in fourth quarter sales marked a 2.4% increase.
The bottom line comparison shows a big advantage for the orange vests. The $2.48 billion in net income for Home Depot outdistanced Lowe’s, with $509 million. Still, Lowe's said its profitability exceeded expectations, and the fourth quarter showed a massive swing from the prior year's fourth quarter net loss of $824 million.
Looking ahead to 2020, Home Depot’s forecast for comp-store sales of 3.5% to 4.0% is slightly above the range forecast by Lowe’s, 3.0% to 3.5%.
Forecasts for total sales growth are higher for Home Depot, 3.5% to 4.0%, compared to Lowe’s, 2.5% to 3.0%.Home Depot finished the fourth quarter with 2,291 stores, Lowe’s had 1,977.
Both companies share an optimism for the health of the consumer, according to statements in each earnings release.
Lowe’s CEO Marvin Ellison said the company is "well positioned to capitalize on solid demand in a healthy home improvement market.”
At Home Depot, CEO Craig Menear pointed to “a strong finish to the year as our fourth quarter results reflect strength in our core business, solid execution around our holiday events and the overall health of the consumer.”