Home improvement improves profits
While the construction industry has collapsed, the do-it-yourself industry's picked up. And that means stronger earnings for Lowe's and Hope Depot. Jennifer Collins reports why the chains are doing well.
More on Housing - Real Estate
TEXT OF STORY
Bill Radke: The home improvement chain Lowe's announced it earned a higher-than-expected profit last quarter. And the company raised its forecast for the year. Jennifer Collins reports,for a home improvement store, recession ain't all bad.
JENNIFER COLLINS: It's spring. Birds, children at play. Hammers -- hammering. OK, that last one is annoying, but to home improvement stores... It's a symphony. While the construction industry collapsed, the do-it-yourself movement picked up. Investment advisor Paul Nolte is with Hinsdale Associates.
PAUL NOLTE With the fall off in the housing market we're seeing a lot more people spend the time in their house to fix it up, make paint jobs etc.
And Nolte says Lowe's and Home Depot winnowed their stock down to what customers were really buying. Investor Sheldon Liber says the chains have few competitors.
SHELDON LIBER: And so when the economy does turn around, these companies are going to see a rebound in sales and profits long before anybody is able to compete with them.
That's may be a symphony in itself. I'm Jennifer Collins for Marketplace.
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