Our fourth quarter results suggest the worst of the economic cycle is likely behind us. While the psychological impact of falling home prices and an uncertain employment picture continue to weigh on consumers, improving comparable store sales trends, including improvement in many bigger-ticket, project categories, provides an encouraging sign that consumers are gaining the confidence to take on more discretionary projects.
– Robert Niblock, CEO, Lowe’s
Home improvement retailer Lowe’s (LOW) reported earnings for the quarter ended January 29, 2010 this morning. The thing that most caught my attention was the stabilization in same store sales which were down 1.6% compared to the year ago period. That after drops of 7.5%, 9.5%, 6.6% and 9.9% the last 4 quarters. So it looks like stabilization, albeit at a low level.
Disclosure: Top Gun has no position in Lowe’s (LOW) shares.