Lowe's: "decline in sales trends" in November
Submitted by
CalculatedRisk on Mon, 11/17/2008 - 5:39am (22 comments)
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How Lowe can we go?
long bunker materials
At least they have that Nascar thing going for them. J6P has plenty of cash/credit to bring them out of it.
Moin from Germany,
here are some numbers from Targets Credit Card busines....
All numbers are compared with the quarter last years
Accounts with three or more payments (60+ days)
past due as a percentage of period-end receivables
5.6 % 3.8 %
Accounts with four or more payments (90+ days)
past due as a percentage of period-end receivables
3.8 % 2.6 %
Net write-offs as a percentage
of average receivables (annualized)
9.6 % 5.8 %
Expired
OT data,
From FRBNY, Empire State Manufacturing Survey:
The general business conditions index slipped 0.8 point, to -25.4a record low in this surveys seven-year history.
Empire State Manufacturing Survey (overview) - Federal Reserve Bank of New York
Citi to announce another 53,000 jobs cut. Wow! That's bad.
Expired
jmf,
The trend looks very bad. It appears none of the 3.8% who were 60 days past due were made good in the subsequent 30 days.
Net write-offs as a percentage
of average receivables (annualized)
9.6 % 5.8 %
Expired? .v=1
jmf | Homepage | 11.17.08 - 8:53 am
And that is a HUGE hit to their bottom line.
And to all at Golden Slacks: merry Christmas.
Moin Charlie,
time for Target to join the TARP.......
It surprises me that Lowes is crying despite importing nearly all of its products very cheaply from China. I expect to see businesses that were built on borrowed money to experience micro-Depressions. Examples include Lowes, Home Depot, and building supply companies. This means store closings. They will likely fail to realize that the import-from-China business model does not work indefinitely, though it is clearly not sustainable.
Lowe's tie to NASCAR is not a good thing. NASCAR is going to return to being a regional fringe sport, based on the economics.
There's Home Depot about to open in the next town, and a Lowes not far from that under construction.
This area is reputably recession-proof: five colleges and two hospitals. Unfortunately, the state university is making cuts, the private colleges endowments just took a whacking and a hospital announced job cuts...
Bob in MA-
Nobody is recession proof given the present circumstances. There's simply too much debt and the system can't handle it.
As to Lowes, I read the release as "we're not building any more than are already started and we're going to go for HD's jugular."
HD is toast. Lowe's? Mebbe.
If it truly turns out to be a deflationary environment and the push goes to customer service, all things being equal, I wonder whether this would open the door again for a resurgence of small local operations that got whacked by the Big Box operations.
"We expect continued, broad-based external pressures on our industry, as rising unemployment, falling home prices, tight credit and volatile equity markets continue to erode consumer confidence and impact sales," [Robert A. Niblock, Lowe's chairman and CEO said].
Disingenuous at best. CEOs need to get a whole lot more believable at the blame game. More accurately, we need to get far more critical when evaluating their claims. Sure there are "externalities" and they share some of the blame but then again these smartest guys in the room also get paid the big bucks to anticipate and prepare for all circumstances. True externalities are fire, flood, acts of terrorism, etc. He's blaming business conditions for business results. Big whoop, how much does a chicken that plays the piano cost anyway?
Bob_in_MA,
No offense but Holyoke is a demographic time bomb. The only thing that saved it for another year or two is the collapse of home heating oil.
Signed your former neighbor,
Lowe's / NASCAR:
Lowe's is a major sponsor of Jimmie Johnson, who just last night won his third consecutive NASCAR Nextel Sprint Cup Winston championship thingy...,
I mean, the Halo effect has got to be massive here. That's gotta translate into huge sales at Lowe's right?
That reminds me : I need to go to a big box hardware store to pick up some snowthrower oil and replacement bulbs for my outdoor lighting. I might be spending nearly 20 dollars today!
I think about going to home improvement stores about once every three months now. That is a lot of real estate and big utility bills for once every three months.
Why spend money on a home if they are jsut going to foreclose on you anyway?
Message to Distressed Borrowers: You Have to Help Yourselves « Your Mortgage or Your Life…
They are building a brand new Lowes by my house, two blocks from the new Home Depot, which does little or no business.
I would short them both!
So the fixing up of all those sold foreclosures hasn't brought more people in? Hmmmm....
So what are we going to do with all these empty big box stores?
Just like with Home Depot, the chart says it may be a good time to buy.
Ezra's Chartbooks : low
The news is always bad at the bottom. I'm not even going to try to claim that this is a big B bottom or that one is coming soon. But the sentiment is really bad here -
Ezra's Chartbooks : _vix
and moods do change.
Sure hasn't hit the LOWE's in Mission Valley San Diego. Despite 100 degree Santa Ana weather, the store was packed on Sunday... where's the discounts?