Stores, shoppers prepare for the possibility of more winter weather

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After Winter Storm Izzy’s shopping rush, where Habersham citizens spent their weekend stocking up on food essentials and supplies to weather power outages, store shelves were left barren and supplies were in high demand.

While fully restocking those shelves seems like the next move, it might not be possible with the potential of more winter weather arriving Friday. Businesses and shoppers are preparing to have everything they need to make it through snowy conditions beforehand.

Lowe’s currently has 165 generators in stock, according to management, after selling out just before Izzy hit Habersham County. As shoppers prepared for the storm, Lowe’s sold over 200 generators.

“We’ve got plenty [of generators] now, I think we’ll be alright,” Jordan Webb, a manager at Cornelia Lowe’s says. In terms of other items, like extension cords, wire, gas cans and snow shovels, though, Lowe’s is either completely sold out or the items are in low stock. Webb says they won’t have any more shipped in before the weekend.

Shelves at Walmart in Cornelia were nearly empty the day before Izzy caused damage, power outages and dangerous road conditions in Habersham. Now Habersham asked Walmart employees for their input on how they were preparing for winter weather but were unable to get further information without the approval of the Walmart Corporation.

“We’re going to take a pass on this opportunity,” Director of Walmart’s press office Charles Crowson said when Now Habersham asked to speak with an employee about how Winter Storm Izzy affected the store. “Our decision at this time is to pass on such interview requests with both corporate and store representatives.”

RELATED: Stocking up for winter storm leaves shelves empty

Shoppers at Ingles in Clarkesville say that while shopping before the storm was chaotic, getting the things they need following it, and preparing for what they may need this weekend, has been a much better shopping experience.

“It was kind of crazy,” says Sonya of North Habersham, reflecting on her shopping trip at the Cornelia Ingles before the storm. She says in comparison to other grocery stores, though, her trip at the Cornelia Ingles was pleasant. “It was a good experience in Cornelia, they had a lot more on their shelves than this [Clarkesville Ingles] store.”

For Faye Brookshire of Clarkesville, whose power was out from Sunday morning until Tuesday, her Ingles trip was to restock spoiled items in her fridge and freezer and get what they need to weather more snow.

She says she’s “absolutely” preparing for the worst. “I will be more prepared this time,” Brookshire says.

Webb says the biggest challenges he sees Lowe’s and their shoppers facing with more winter weather potentially on the way are employees being able to safely come to work, and people last-minute shopping for the things they’ll need.

“Go out and get what you need before the [snow],” Webb says. “Don’t wait until Thursday night at 8:00 p.m. to show up and expect us to have everything you need, because I promise we’re not going to.”

Lowe’s drives successful growth home

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Among the lessons of the pandemic was a new definition of “home.” Residences have always been places of investment, pride and personal reflection, said Lowe’s Companies Inc. Chairman and CEO Marvin Ellison at NRF 2022: Retail’s Big Show, but they quickly became something else — the place for school, office work, recreation, entertainment and sanctuary, too.

Lowe’s had to step up its game to be there for customers, and those customers responded “incredibly well,” Ellison said. The company has not only kept pace amid the challenging times, but also grown exponentially.

NRF 2022: Retail’s Big Show is happening Jan. 16 – 18 in New York City. View the event recap.

Throughout the pandemic, stores have remained open with the exception of Easter, Thanksgiving and Christmas. In 2021, Lowe’s saw revenue of $95 billion, representing 33 percent comparable sales growth on a two-year basis. It has hired almost 100,000 new team members and invested almost $1 billion in incremental bonuses and incentives for front-line hourly associates.

And as for Ellison? “I couldn’t be more proud of my leadership team,” he said.

Ellison joined NRF President and CEO Matthew Shay virtually for a keynote on Lowe’s becoming the “total home” destination. Shay commended Ellison on that leadership team, calling it “part of the transformation that’s taken place.”

Ellison, Shay continued, had already been making major investments in the company prior to the pandemic, including a renewed focus on retail fundamentals. Those investments helped the company execute at the level it did over the last two years.

When Ellison took the helm of Lowe’s in July 2018, the company was not “modern” in relation to modern retail. There was a 10-year-old dot.com infrastructure; there was no coherent merchandising strategy; the supply chain was more suited to bricks-and-mortar; and the labor scheduling system was a static schedule handed down from the corporate office to 2,200 stores, among other challenges.

Lowe’s began making investments in these areas in late 2018 into 2019, so when the pandemic hit, great strides had already been made.

Even so, the company still wasn’t where it needed to be, and some of those investments had to be reprioritized. Lowe’s leaned into things like curbside pickup, buy online pick up in store, improving the mobile app and working to ensure the health and safety of the workforce and customers.

The next plateau is the “total home” strategy to help sustain market share growth. It’s a basic philosophy to make Lowe’s the provider of everything a customer might need for the home. That means, for example, towels for the bathroom remodel, and pots and pans for the kitchen.

NRF 2022 On Demand Watch NRF 2022: Retail’s Big Show on demand and catch up with latest sessions.

Home improvement is a roughly $900 billion market, Ellison said, and Lowe’s and its chief competitor make up only $300 billion of it combined. There’s still room for expansion.

The conversation also touched on a partnership with AARP that helps customers “age in place” with solutions for changing mobility needs; Ellison’s unique perspective as one of only a few Black Fortune 500 CEOs, as well as someone who came up through the workforce loading trucks, being a janitor, catching shoplifters and working graveyard shifts; and how Lowe’s celebrated its 100th birthday in 2021 by completing 100 impact projects in communities nationwide.

“As we think about what we need to be as a company, it’s been really simple,” he said. “We want to take care of associates and be the best workplace we can be. We want to delight our customers. We want to make our communities better.”

And doing those things consistently, he said, will satisfy shareholders and create great shareholder value. “I’m proud of the work that we’ve done,” Ellison said, “but we have to maintain it.”

Lowe’s Companies, Inc. Announces Quarterly Dividend of $0.80 (NYSE:LOW)

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Lowe’s Companies, Inc. (NYSE:LOW) announced a quarterly dividend on Friday, November 12th, Zacks reports. Investors of record on Wednesday, January 19th will be given a dividend of 0.80 per share by the home improvement retailer on Wednesday, February 2nd. This represents a $3.20 dividend on an annualized basis and a yield of 1.31%. The ex-dividend date is Tuesday, January 18th.

Lowe’s Companies has raised its dividend by 57.3% over the last three years and has increased its dividend every year for the last 47 years. Lowe’s Companies has a dividend payout ratio of 22.1% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Lowe’s Companies to earn $12.86 per share next year, which means the company should continue to be able to cover its $3.20 annual dividend with an expected future payout ratio of 24.9%.

NYSE LOW opened at $243.40 on Friday. The business has a 50 day simple moving average of $249.67 and a 200 day simple moving average of $220.91. Lowe’s Companies has a 52-week low of $150.84 and a 52-week high of $263.31. The company has a debt-to-equity ratio of 49.23, a quick ratio of 0.39 and a current ratio of 1.19. The stock has a market cap of $163.99 billion, a price-to-earnings ratio of 21.15, a PEG ratio of 1.49 and a beta of 1.31.

Lowe’s Companies (NYSE:LOW) last posted its earnings results on Wednesday, November 17th. The home improvement retailer reported $2.73 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.35 by $0.38. The business had revenue of $22.92 billion during the quarter, compared to analysts’ expectations of $22.06 billion. Lowe’s Companies had a return on equity of 25,100.30% and a net margin of 8.63%. Lowe’s Companies’s revenue for the quarter was up 2.7% compared to the same quarter last year. During the same period in the prior year, the business earned $1.98 EPS. On average, analysts predict that Lowe’s Companies will post 11.95 EPS for the current year.

A hedge fund recently raised its stake in Lowe’s Companies stock. Camden National Bank grew its position in shares of Lowe’s Companies, Inc. (NYSE:LOW) by 17.1% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 2,291 shares of the home improvement retailer’s stock after buying an additional 335 shares during the period. Camden National Bank’s holdings in Lowe’s Companies were worth $368,000 at the end of the most recent quarter. 74.17% of the stock is owned by institutional investors and hedge funds.

Lowe’s Companies declared that its Board of Directors has authorized a stock repurchase program on Wednesday, December 15th that allows the company to buyback $13.00 billion in shares. This buyback authorization allows the home improvement retailer to purchase up to 7.6% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s leadership believes its shares are undervalued.

Several equities analysts have recently weighed in on the stock. Guggenheim raised their price target on shares of Lowe’s Companies from $275.00 to $300.00 and gave the stock a “buy” rating in a research note on Thursday, December 16th. Wells Fargo & Company raised their price target on shares of Lowe’s Companies from $280.00 to $295.00 and gave the stock an “overweight” rating in a research note on Monday, December 13th. Loop Capital increased their price objective on Lowe’s Companies from $220.00 to $240.00 and gave the company a “hold” rating in a report on Thursday, November 18th. Morgan Stanley increased their price objective on Lowe’s Companies from $260.00 to $265.00 and gave the company an “overweight” rating in a report on Thursday, December 16th. Finally, DA Davidson increased their price objective on Lowe’s Companies from $286.00 to $292.00 in a report on Thursday, December 30th. One analyst has rated the stock with a sell rating, four have issued a hold rating and twenty-one have given a buy rating to the stock. Based on data from MarketBeat, Lowe’s Companies presently has an average rating of “Buy” and an average price target of $258.71.

About Lowe’s Companies

Lowe’s Cos., Inc engages in the retail sale of home improvement products. The firm offers products for maintenance, repair, remodelling, home decorating and property maintenance. It also provides home improvement products in the following categories: appliances, bathroom, building supply, electrical, flooring, hardware, paint, kitchen, plumbing, lighting & fans, outdoor living, windows and doors.

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This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat’s editorial team prior to publication. Please send any questions or comments about this story to [email protected]

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Don’t Waste Your Money: Big-ticket item inflation

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(WHTM) — We all feel the impact of inflation every time we go grocery shopping. But, if you are buying big-ticket items, it can really hit home as one Aurora, Indiana man just learned.

Gary Allen found the perfect backyard cedar shed at Lowe’s last spring and says he pre-paid $9,400 on his credit card. “Found it online, ordered it in March, and had a delivery date of April 23rd,” Allen said.

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But April became July and then September came and went and still, no shed. It was on backorder. Allen says the store has a lot of other sheds in stock, but none of them were like the farmhouse he ordered and, he says, by the time they had one for him, the price was so much higher.

“I paid $9,400, and now it’s $12,100,” Allen said. Why the almost $3,000 rise from the original price? Rising lumber costs.

“They’re having trouble with the price point from their vendor. And that told me they are having to raise the price because it is unavailable,” Allen said.

We contacted Lowe’s where a spokesman promised to look into Allen’s case. A week later, they offered him a gift card for $750. Though Allen says it still does not bring the shed down to what he originally paid.

The same inflation is also hitting new and used cars, appliances, and other items. So how can you protect yourself if something you want is out of stock? Ask if you can lock in the current price. If you can’t, then consider a different model that is currently in stock. Or, look at a smaller version. In this case, Lowe’s now has a small shed for $9,000.

When it comes to big-ticket items, that is where inflation really hits home. As always, don’t waste your money.

Home Depot stock is now a buy, as analyst cites strong housing market and aging infrastructure

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Home Depot Inc. was upgraded by Truist analyst Scot Ciccarelli, who said he expects supply and demand imbalances in the housing market, pandemic-driven behavioral changes and aging housing infrastructure to drive “significant” growth for the home improvement retailer.

Ciccarelli said he also believes the company’s size and scale benefits and enhanced supply chain capabilities will help it gain market share from rivals.

The stock HD, -1.92% slipped 0.2% in afternoon trading, erasing an earlier gain of as much as 1.3%. The stock has now shed 6.6% since it closed at a record $416.18 on Dec. 7, but still had run up 14.9% over the past three months while the Dow Jones Industrial Average DJIA, -0.96% had gained 5.5%.

Ciccarelli assumed coverage of Home Depot with a buy rating, after it was rated hold at Truist for at least the past three years. The stock price target was raised to $448 from $420.

“With existing home inventory levels near historic lows, we expect continued home price appreciation, which should drive further home investment activity,” Ciccarelli wrote in a note to clients. “Further, housing infrastructure continues to age, with ~65% of single family homes in the U.S. now at 30+ years old and older houses need more maintenance/repair activity.”

He said Home Depot’s more than $11 billion investment in its supply chain to provide next- and same-day delivery on large parcel product to more than 90% of the U.S. population should help the company gain market share and expand its reach into newer markets.

Also read: Home Depot teams up with Walmart’s GoLocal for speedy delivery service.

“Home Depot is ~50% bigger than its top-rival Lowe’s, providing it with unrivaled size and scale in the favorable home improvement sector,” Ciccarelli wrote. “Heavy investments in the company’s One Home Depot strategy should help accelerate share gains in this still highly fragmented sector.”