HOME DEPOT, LOWE'S YEAR END RESULTS ARE OUT

By NZHJ February 25, 2016 International News

Home Depot looks strong at year end but net earnings at Lowe's are hit hard by the Masters impairment.

We will be taking a closer look at the relative performances of these two North American giants in our April issue but for now just the figures tell their own story.

The Lowe's Q4 result is most affected by losing US$530 million straight off the bottom line in the form of an impairment charge due to its Masters exit.

Having said that, its comparables are also somewhat weaker than Home Depot's although there again both the DIY retailers' peak seasons fared well compared to other mainstream US retailers like Target (comps +3.6%) or Walmart (comps +0.4%).

Revenue           Q4                          FY2015
Home Depot      US$20.9b   +9.5%    US$88.5b   +6.4%
Lowe’s                US$13.2b   +5.2%     US$59.1b   +5.1%

Net earnings     Q4                         FY2015
Home Depot       US$1.47b   +7.4%   US$7.0b   +10.5%
Lowe’s                 US$11m    –97.6%  US$2.5b   –8%

Comparables    Q4           FY2015
Home Depot         +7.1%     +5.6%
Lowe’s                   +5.2%     +4.8%

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