Home improvement projects have been on the rise during the lockdown. Hey, you might have done a thing or two yourself! So, it shouldn’t be a surprise that Lowe’s made headlines yesterday after beating expectations.
But what baffles investors is its competitor Home Depot, which Lowe’s beat by a long shot after releasing its quarterly results.
Although both stores are go-tos for home improvement enthusiasts, investors are wondering how did one beat the other? Well, it all comes down to creativity and strategy. Namely: location, location, location, and of course, good marketing.
First, it appears that Lowe’s, which is seen as a more “upper-class” DIY base, tends to be located in areas less affected by the coronavirus. Their stores are less likely to be in busy cities and more likely in suburban neighborhoods.
And second, they continued doing promotions despite the paranoia but combined that with shorter store hours and other crowd-control methods. They also made an effort to promote via the NFL virtual draft and American Idol, which paired well with the pandemic.
Perhaps it’s just luck but these smart moves gave them a massive 11% boost in sales, which the company hasn’t seen since 2003.
Although their shares (LOW) were up 5.7% in pre-market, they ended at 0.15%. Why? It’s a mystery. Investors believe there’s anything to worry about. It seems that the company set themselves up very well for the current situation and now appear to have a promising future.
It was a good day for most markets around the globe, despite the fact that Moderna’s vaccine criticism continued to cripple their stock.
The Dow ended with a gain of 369 points, or 1.52%. The S&P 500 went up 1.67%. And the Nasdaq won the day with a 2.08% rise.
Moderna (MRNA), meanwhile, ended better than it started – at $73.47, an impressive recovery from its daily low of $67.41.
It was a nice day for oil as well, which was up 4.94% to $ 33.55 at market close. And gold had two green days in a row, valuing at $1,751 after the bell.
Target published its Q1 results yesterday. Much like Walmart, Target beat expectations thanks to a 141% rise in digital sales. They also noticed that people now tend to take fewer shopping trips but tend to fill up their baskets a little more than average.
While revenue was up compared to last year, net income was at a loss. But this should not be surprising considering that they spent a massive $500 million on coronavirus safety measures and gave their employees an increase in pay.
Since they expect this extra spending to continue, at least through Q2, investors didn’t seem too keen. Target’s stock (TGT) closed at $119.63, down by 3.29% at the end of the day. Seems a bit silly, considering the CEO (and Target loyalists) are optimistic about the future outlook. Much like Lowe’s, if nothing else, this is likely just a small hiccup for the retail giant.
Or is the bigger question – why is everyone suddenly so negative on what they previously viewed as an obvious win? Something to think about. What are your thoughts? Share them with us via a reply!
Tesla in Tulsa?
After Elon Musk threatened to move his factory out of California, Mayor G.T. Barnum took no time to suggest that Tesla makes Tulsa their new home.
And to sweeten the deal, the city’s mayor promised to upgrade the local polite fleet to Tesla’s futuristic Cybertrucks. Perhaps he was inspired by Dubai?
He claims that it only makes sense that if Musk invests his cash into the city that the favor must be paid back.
Call it a spin on the “Buy Local” trend. And let’s give Barnum a thumbs up for quick thinking, not to mention the fact that he made his offer on Twitter, which Musk is known to frequent.
According to a recent report by the Associated Press, Tesla is considering either Tulsa or Austin as the new location for the gigafactory, but the scouting operation is still ongoing. Given that Austin hasn’t proclaimed any enthusiasm after AP’s announcement, might we see Tesla in Oklahoma very soon?
Tesla (TSLA) was up 0.93% on Wednesday, ending at $815.56.
A Sip to Summer
Summer without a bottle of fine rose wine is just not the same. At our office, we always associate it with a sunny day on the beaches of Cote d’Azur.
So, if you’re seeking a suggestion, we have one that will give you a taste (pun totally intended) of that magical Mediterranean holiday you’re dying to take.
Entering… Rosa by Dolce & Gabbana which was inspired by Sicily and is guaranteed to transport you to the times when Italy wasn’t off-limits.
The 2019 vintage is a smart mix of Nocera and Nerello Mascalese grapes, which are considered iconic in the region. By flavor, expect fruity notes of wild strawberry and peach mixed with exotic flowery hints of jasmine and bergamot.
The wine will be available from June on Dolce & Gabbana’s website.
Airlines: You’re Doing It Wrong!
The hot topic these days seems to be what can the travel industry (airlines specifically) do to get their frequent flyers back?
If you’ve been keeping up with your junk mail, you might have received an email or two yourself from the likes of Delta or American Airlines about how they’re gonna make flying “safe” again.
Unpopular opinion: They’re doing it wrong!
Because the last thing we want when paying for an overpriced (trust us – prices will likely go up) First Class ticket is knowing that we have to spend the entire 10-hour intercontinental flight suffocating in a mask, eating a bagged lunch, and having zero freedom to take a stroll to stretch our legs.
Does that mean no more unlimited Champagne refills? 🙁
Sure, some things like empty middle seats and half-filled flights are nice gestures (although not everyone is doing this), but the rest is just ridiculous!
While sure, it’s understandable some people may be worried about their safety when traveling, but the majority of the COVID paranoiacs will likely NOT be flying anytime soon. However, their existence will make the lives of everyone else around them completely miserable.
Honestly, we wouldn’t be surprised if even those that are pro-safety will get sick of this after a while.
We think this strategy is likely to lose their customers (or at least their well-paying ones) in the long run. Don’t you?