Page 34 - HW MARCH 2020

global eyes
Patchy year-
end numbers from US hardware players
its Canadian operations and closure of its Mexico business
Lowe’s Q4 top line growth was weak, rising 2.6% to US$16 billion, and, compared to the opposition, its Q4 US comps were also low at +2.6%, the gain thanks almost exclusively to its store network, says the company.
In another nod to its sub-par performance in e-commerce to date, Lowe’s reported Q4 online sales growth of just 3% and restricted itself to forecasting “high single-digit growth” for online sales for the coming year.
It’s a recognised weakness, says Lowe’s. “We have a detailed road map in place
to modernize our e-commerce platform and accelerate Lowes.com sales, which combined with the sales productivity improvement in our physical stores, underscores our opportunity to unlock additional growth,” says Marvin Ellison, Lowe’s President and CEO.
www.lowes.com
Ace shows biggest gains – Ace Hardware upstaged its bigger rivals in
THE HOME DEPOT, Lowe’s and Ace Hardware all reported fourth quarter results in February. One of the most interesting outtakes is their very different levels of online growth...
Home Depot’s strong year end – Altlanta’s orange behemoth reported strong fourth quarter numbers including US comp sales +5.3%, although its top line fell by 2.6% thanks to an extra week in Q4 FY2018.
Q4 online sales also grew by more than 20%, it’s reported.
For the year, US comps were a more moderate +3.8% and the top line rose just 2.8% to US$110.2 billion.
“Fiscal 2019 was a record year for our business and one marked by significant progress as we invest to transform ourselves into The Home Depot of the future.
“We had a strong finish to the year as our fourth quarter results reflect strength in our core business, solid execution around our holiday events and the overall
health of the consumer,” says a bullish Craig Menear, Chairman, CEO and President.
“We are now two years into our multi- year investment program and have more conviction than ever that our strategic initiatives are creating a value proposition that is unique to the marketplace and will extend our leadership position for years to come.
“Through the second year of our One Home Depot investment program, we have grown sales by over $9 billion dollars – a level of growth unmatched in our market.”
As a result, The Home Depot boosted its dividend by 10% no less. For FY2020, the outlook is for gains to both its top line and comps of 3.5-4.0%.
www.homedepot.com
Lowe’s still losing online – Lowe’s too is investing heavily to turn the business around, noting pre-tax operating costs and charges of US$185 million from the previously disclosed strategic review of
32 NZHJ | MARCH 2020
MORE AT www.hardwarejournal.co.nz