Both Lowe's Cos. Inc. (Mooresville, N.C.) and The Home Depot Inc. (Atlanta) reported strong second quarters, buoyed by the housing market's ongoing recovery.
Lowe’s saw its net income rise in the second quarter by 26 percent. Same-store sales were up 9.6 percent. And Home Depot gained 17 percent in earnings and 9.5 percent in sales.
Both home improvement giants exceeded Wall Street expectations.
Last week, the U.S. Commerce Dept. said July housing starts were up 6 percent in June. And the National Association of Home Builders/Wells Fargo Builder Sentiment Index reported that confidence among U.S. homebuilders is at its highest level in nearly eight years, fueled by optimism that demand for new homes will drive sales growth into next year.
Lowe's also announced that its acquisition of Orchard Supply Hardware (San Jose, Calif.) has been approved by the U.S. bankruptcy court. Orchard Supply, a former non-profit cooperative that was owned by Sears Holdings Inc. (Hoffman Estates, Ill.) from 1996-2012, was spun off into a public company and declared bankruptcy in 2013. Its 91 locations are expected to be run as a Lowe’s subsidiary, keeping its brand name and remaining in California.