LOW - Aristotle Capital - Lowe's Companies: Closing The Gap With Its Nearest Rival

2024-05-16 08:00:00 ET

Summary

• Lowe's Companies is the world's second-largest home improvement retailer, primarily serving retail "do-it-yourself" customers.
• Lowe's has hired a former Home Depot executive to close the gap and better compete with its rival.
• The company has identified quality characteristics, attractive valuation, and compelling catalysts for future growth.

The following segment was excerpted from this fund letter.

Lowe's Companies, Inc. ( LOW )

Based in North Carolina, and with a history dating back to 1921, Lowe's Companies is the world's second-largest home improvement retailer (after Home Depot). The company operates more than 1,700 stores in the United States that offer a wide variety of products to enhance a home, from plants for the garden and house décor to hardware and appliances. Often located in suburban areas, Lowe's stores primarily serve retail "do-it-yourself" customers (~75% of revenue) and sell products that are used for home maintenance and repair (over 60% of revenue). This contrasts with Home Depot ( HD ), whose stores have a higher presence in metropolitan areas and cater more to professional customers....

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