Lowe's fiscal fourth-quarter net income slumped 33%. Lowe's expects the weakness to persist for several more quarters.
Chairman and Chief Executive Robert A. Niblock
said sales were below expectations "as we faced an unprecedented decline in
housing turnover, falling home prices in many areas and turbulent mortgage
markets that impacted both sentiment related to home improvement purchases as
well as consumers' access to capital."
He might be overstating it inorder to provide a cover for the bad results. But it's worth reading the above statements.
He went on to say "the next several quarters will be challenging on many fronts as industry sales are likely to remain soft."
The housing downturn is going to get worse before it gets better. Unlike Daniel Oppenheim of Bank of America, we do not expect a quick turnaround to this housing market.
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