Target and Lowe’s cheered everyone up by announcing that they’re doing just fine in the “tough selling market” that Home Depot was so worried about.
Retail stocks have been pressured in recent weeks as investors fret that the deteriorating housing market, rising U.S. mortgage defaults and higher gas and food prices are curbing consumer spending.
Wal-Mart reported a lower-than-expected quarterly profit and cut its full-year earnings forecast last week, saying “economic pressures” like higher fuel prices have depleted shoppers’ wallets.
But Target’s sales at existing stores continue to outpace those at Wal-Mart. Its sales of cheap but trendy clothing and home decor have helped to offset sales of lower-margin goods like groceries. Wal-Mart is struggling in both its clothing and home businesses.
The Associated Press said of Lowe’s:
The nation’s second-largest home improvement chain posted higher-than-expected second-quarter profit as it gained market share and said sales trends were improving in some regions despite the soft housing market.
Poor Walmart and Home Depot. Nobody likes you.