JPMorgan analyst Christopher Horvers noted improved year-over-year store performance at Lowe’s Companies (NYSE:LOW) and strong seasonal traffic at Home Depot, Inc. (NYSE:HD) during a recent visit to Philadelphia.
Horvers observed that while Home Depot continued to lead in overall traffic and sales volume—particularly at its King of Prussia location—Lowe’s stores showed meaningful year-over-year improvement, taking the next two top-performing spots in the Philadelphia area.
His recent store checks revealed stronger lawn and garden traffic at most locations visited, likely boosted by favorable weather and the three-day weekend during Good Friday, with customer activity significantly higher than last year and last week’s visits in New Jersey.
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However, activity among professional customers appeared weaker, with fewer trucks in Pro parking areas and a lower number of Pros at service desks compared to last year.
While “warmer” weather is forecasted for the Northeast, it could lift DIY demand in the near term, but “unsettled” weather patterns over the next two weeks could still pose headwinds.
Horvers writes that Numerator data suggests Lowe’s has faced a greater weather-related drag on spring sales compared to Home Depot.
While both retailers saw a slow start to the season, Home Depot appears to be recovering more quickly.
Outdoor DIY sales at HD rose roughly 4% overall and surged 21% in the week ending April 6, whereas Lowe’s sales remained down about 10% for the quarter to date—though that’s an improvement from the earlier 15% drop—and were roughly flat during the same week.
Encouragingly, seasonal sales have started to pick up for both companies since late March, with Home Depot maintaining a stronger rebound, particularly outside the Southern U.S., where gains have been more muted, the analyst further notes.
Price Action: LOW shares traded higher by 2.9% to $219.07 on Tuesday, while HD shares were up 2.1% to $354.43.
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