The generally poor economic outlook, including well-known housing pressures, rising food and fuel prices and a more negative employment picture eroded consumer confidence and impacted discretionary purchases for the home.
– Robert Niblock, CEO Lowe’s
Home improvement retailer Lowe’s (LOW) reported earnings before the open this morning – and it wasn’t pretty.
Same store sales declined 8.4% from the year ago period and net income was down 18%. Their forecast for the next quarter is a 6%-8% same store sales decline (LOW Earnings Release).
Expect more of the same from Home Depot (HD) tomorrow.
Disclosure: Top Gun has no position in Lowe’s (LOW) and is short Home Depot (HD).