Home improvement improves profits

Marketplace Staff May 18, 2009
HTML EMBED:
COPY

Home improvement improves profits

Marketplace Staff May 18, 2009
HTML EMBED:
COPY

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.

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.