Lowe’s reported quarterly results this week, beating on both the top and the bottom lines — and raised its annual revenue guidance both on revenue and profits – based on the strength in home improvement trends. Yes, homeowners continue to invest… as their equity remains at high levels. Home Depot was proud to have identified a trend that they called “improving in place” for those who considered selling their homes, but instead are staying put.

Despite inflation in the economy, homeowners are indeed proving resilient.  After all, home prices are 11.4% higher than a year ago. And collective equity grew by some $1.2 trillion in the first quarter.  

There remains a true shortage of available homes… amid historically, low mortgage rates.

What’s more, our channel is witnessing a continued resilience of homeowners — based on their enduring increase — in disposable personal income.

When one considers that 50% of US housing stock is over 40 years old… the macro trends create a very positive backdrop for home improvement.

And it’s not just DIY projects. Lowe’s conducted a survey of their professional customers, who claimed that their backlog of work and their business is as robust as they’ve seen it in many years.

Of course, the future is never clear. And hind-site is always 20/20. Volatility in materials likely will continue as lumber inflation was pronounced earlier in the year. Yet, the channel has experienced recent deflation — and prices actually fell — in categories like copper.


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