Lowes and Existing Home Sales Take The Plunge

Summary: Lowes Home Improvement reports 33% decline in Q4 profit.

Existing home sales plunge for a 5th straight month, at lowest level since record keeping began in 1999.

Lowe's, #2 home improvement chain, reported a 33% decline in Q4 profit...

on a same store sales decline of 7.6%, and issued a full year earnings forecast less than analysts' projection. CEO Robert Niblock:

"we faced an unprecedented decline in housing turnover, falling home prices in many areas and turbulent mortgage markets...

that impacted both sentiment related to home-improvement purchases as well as consumers' access to capital
."

Existing Home Sales Jan -0.4% at 4.89M Full Report

Inside the number: YOY -23.4%; inventory +6.2% at 10.3 months; YOY +53.7%.

SFR +0.5% at 4.340M YOY -22.4%; inventory +7.4% at 10.1 months; YOY +55.4%;

YOY Price -5.1% at 198.7K; West YOY price -7.2%; Sales YOY -28%.

Peter Morici, an economics professor at the University of Maryland:

"The Federal Reserve's efforts to restore the mortgage market so credit is available so people can buy houses has largely failed.

There really isn't a lot of hope that things are going to turn around soon
."

Ara Hovnanian, CEO of Hovnanian Enterprises: "We're seeing prices now that are basically back to '02, '03 levels."

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