Lowe's Conference Call Highlights: Optimism Over Housing Market Continues


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


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(NYSE: L) third quarter results which were reported on Wednesday morning, the company hosted a conference call to discuss its quarter and future outlook.Third Quarter In Review
  • As optimism over the housing market continued in the quarter, the company notes that home owner desire to invest in their homes has been the highest since 2006.
  • All 12-product companies generated positive comps.
  • Comp sales were driven by an increase in comp average ticket and an increase in comp transactions.
  • Fashion fixtures, millwork produced above-average comps.
  • No net inflation impacts were noticed.
  • Professional unit comps grew at a higher pace than the company average.
  • Big ticket purchases above $500 rose by nine percent.
  • Gross margin declines of nine percent in the quarter were driven by promotions.
Fourth Quarter Outlook
  • Lowe's is adding more store space for holiday decorations.
  • The ongoing port disturbance in the west coast won't impact holiday inventory
  • Impact on promotions will be the same as it was in the third quarter, largely focused around appliances.
  • Management will share a long-term vision for the business at an investor and analyst conference on December 11.
Full Year Fiscal 2014 Outlook
  • Total share repurchases are estimated to be $3.7 billion, $300 million more than previously projected.
  • Higher level of share buybacks attributed to lower capital expenditures.

27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Posted In: NewsHousing MarketLowe's