The positive momentum the wide-moat company has captured through its brand positioning and supply chain is set to continue in 2018.
More dynamic merchandising, a faster supply chain, and better customer read-through from opportunities with its loyalty program have driven solid sales and recent share price gains.
Although some retailers continue to cede share to online peers, some protected businesses should deliver rising profitability.
We expect the company to continue to close stores through attrition and continue to invest in its online platform.
The narrow-moat toymaker expects operating margins to be 'significantly lower' than 2016's.
While we expect healthy operating margin gains in 2018, we operating margins will approach 10% over our long-term outlook.
While this marks another quarter in which Lowe's business lagged that of Home Depot, the performance was still solid.
Although top- and bottom-line results were better than we expected, we still view the shares as overvalued.
With elevated existing-homes sales and prices that help turnover remain inflated--along with overhang of storm-related sales--home improvement spending should persist.