The other day we discussed how Sears lost $2.4 BILLION in Q4 2011. The fourth and final quarter of the fiscal year includes the winter holiday shopping season, and usually represents more than the proportional 25% of annual sales. If a retailer fails to turn a profit during the holiday shopping season, everyone takes notices.
So let’s see how Lowes and Home Depot fared…
As mentioned, Home Depot reported $16 billion in revenue and $774 million in profit. Lowes announced their Q4 results early this morning – $11.6 billion in revenue and $322 million in earnings.
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Some analysts are saying that the warmer winter weather helped drive along home improvement and new construction projects. And as we’ve seen and been told repeatedly, many homeowners are looking towards the DIY route to same money on small-medium sized home improvement projects.
While Home Depot and Lowes did not report a breakdown of revenue by department, it is safe to assume that the holiday season contributed to a boost in tool sales.
According to market research stats from a couple of months back, Sears and their Craftsman brand were still leading the market with about a third of hand tool sales. Home Depot and Lowes both lag behind, with less than 30% market share combined. The reverse is true with power tools, with Sears lagging behind both.
Consumer confidence does not depend on quarterly reports or business metrics, but with some analysts questioning Sears’ survivability, we might see a shift in market share as consumers look for tools with greater warranty and guarantee stability.
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