Lowe’s wants to catch Home Depot

Lowe’s is shutting down… its Orchard Supply Hardware stores and plans to lower inventory at stores, as well. This announcement seems odd, especially after the company just reported better-than-expected earnings and saw their stock rise more than 7%. Despite the strong results, Lowe’s still cut their sales and profit outlook for the rest of the year.


Home Depot is just better… because although sales at Lowe’s were good, up 5.3%, sales at Home Depot were better, up 8%. To keep pace with Home Depot, significant changes (mentioned above) are in store for the company. Closing all of the Orchard Supply Hardware stores is one way they will accomplish this – a company they acquired just five years ago for $205 million.


Shaking it up… Lowe’s announced that they will be hiring David Denton, the current CFO of CVS. The company also eliminated the COO and CCO position last July. Lately, we have seen companies grabbing the ‘bull’ by the horns and taking control of their future – not a bad idea, and looks like Lowe’s will follow suit.