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In Need of Repairs: Profits Collapse at Lowe’s

Written by Gary North on November 16, 2011

Profits at Lowe’s, one of the two major home repair suppliers, fell by 44% in the third quarter.

Lowe’s sells to customers who are improving their lifestyle by upgrading their homes. This is necessary when selling a home. But homes are still not selling. Owners are out of money to make repairs. They sense that repairs will not help them sell their homes; only large price reductions will. So, they hold on.

This is not the first year of the decline in housing prices. It is year four. Lowe’s got hit this hard in year four. This indicates that the housing market is nowhere near recovery.

Housing is in the tank. It is a major employer. The construction industry is still in recession mode. The failure of Lowe’s shows just how bad this market is.

Lowe’s did sell to customers making purchases of under $500. But large-purchase buying fell. This is where the big profits are for Lowe’s.

The company will close 20 stores and fire almost 2,000 people.

Continue Reading on www.nytimes.com

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6 thoughts on “In Need of Repairs: Profits Collapse at Lowe’s

  1. James Boardman says:

    Thank you obama, Freddie Mac and Ms. Fannie. We the people suffer and struggle while you pad your palms. And you wonder why we have no respect for any of you. I respect the office of President, just not the. Person in the office.

    May youall have a blessed Christmas. Maybe a little Light, hope, Peace and Love of Christ be with you and take Roots in your lives.

  2. The Chinese are dumping. The Government of China or some other agency is subsidizing their exports to the US, thereby harming business in America.

    http://www.usitc.gov/press_room/news_release/2011

  3. The reason Lowes is not doing well is because of their prices. I am a contractor and i can tell you that Lowes prices on trim for instance are double what my local lumber yard charges. My local lumber yard also has better prices on lumber. Lowes has selection, and that is about it. Their prices are ridiculous, and most people prefer the warm smiles they get from locally owned businesses.

  4. I'd rather go to lowes than home depot. Home is guided and/or run by homosexuals. Nuf said.

  5. Steven Higgins says:

    well seems like america continues to fall… we have lost control of government. free market will fix the problem. they are the problem. might be time for a price freeze, pay freeze. we will need time to sort the fact from fiction, and not from government,wall street types or bamkers.

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