NEW YORK - home improvement retailers are evolving to meet the needs of budget-conscious consumers trapped in houses, that they cannot sell.
Home Depot Inc. focuses on more products affordable and projects and Cos. Lowe, on the improvement of services to the customer as outdoor equipment repair - changes dictated by the results of the first quarter of the companies, which show customers holding on their cash until it is the right time to spend.
Home Depot, the largest chain of U.S. home renovation, said Tuesday that its income declined by 0.2% to 16,82 billion for the quarter ended May 1, estimate the 17.06 billion of missing Wall Street. Lowe, published quarterly earnings Monday, saw its revenue decrease by 2%.
Weather is critical both strings and early spring quarter - their second more grand in income after the start of the summer - usually prompts a flurry of seasonal purchases, including plants, patio furniture and barbecue grills. But difficult conditions have covered most of the nation for a large part of the first quarter and shoppers stayed indoors.
Kind of Home Depot and Lowe, know that their customers will come from the products of spring once the weather to improve, now working on new ways to keep their rear entrance. Home Depot raised his earnings forecasts throughout the year, but Lowe soaked his prospects.
Home Depot executives said in a Tuesday conference call offerings such as painting and storage of the tool with flexible walls as maintenance and repair is to strengthen their string - instead of major renovations - stay at the forefront of the minds of consumers.
The owners have a lot of causes for caution, with the construction of the new home to the Netherlands in April and U.S. builders worry about the housing market does recover this year. Shoppers abandoned all but large projects during the recession.
Home Depot Chief Financial Officer Carol Tome said in an interview with The Associated Press that his company offers a variety of costs, as the firm re-facing options, for customers who want to upgrade their kitchens. This price-sensitive approach has helped contribute to an increase of 1.5% the amount of the average transaction to the House of filing for the quarter. S Lowe, the average reception was almost flat.
Lowe, President and CEO Robert Niblock said at the appeal conference Monday that rising gas prices are pushing consumers to shop at what store is the most practical.
Based on store count, that would most often place shoppers in Home Depot. Lowe had two stores in United States, Canada and the Mexico of 29 April, eclipsed by retail murdered the Home Depot in the 50 States, the District of Columbia, Puerto Rico, Virgin Islands, Guam, 10 Canadian provinces, the Mexico and China.
To combat the convenience factor, Niblock said Lowe is differentiating its products and services and the opening of new stores in targeted areas. Lowe, said Monday that its net income in the first quarter fell by 6%.
Tome of the Home Depot said, however, that it is too early to draw a correlation between the price of gasoline and customer traffic. And his company said Tuesday that its net income raised 12 per cent of 812 million, or 50 cents per share, from $ 725 million, or 43 cents per share, a year earlier. Who beat the 49 cents per share analysts surveyed by FactSet under average.
Based in Mooresville, N.C. Lowe lowered its Outlook of the year, to $ 1.56 to $ 1.64 per share on revenue of nearly 4% increase which means 50.79 billion in revenue. He has previously forecast earnings of $ 1.60 to $ 1.72 per share on an increase of 5% of income.
Home Depot, based in Atlanta, has increased its 2011 earnings estimates and now expects to earn $2.24 per share, from $2.20. It retained its revenue forecasts of growth of 2.5% in 2010, when it took in $ 68 billion, implying $ 69.7 billion revenue in 2011.
Wall Street predicts earnings of $2.30 per share on revenue of $ 6972 billion.
Shares of Home Depot gained $52 cents to 37.50 in mid-afternoon, while Lowe stock slipped 9 cents $24.76.
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