Please ensure Javascript is enabled for purposes of website accessibility

Here's a Surprising Winner at Lowe's Right Now

By Daniel B. Kline - Mar 26, 2020 at 11:44AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The chain's sales have held strong during the coronavirus pandemic.

It makes sense that shoppers have flocked to Lowe's (LOW 3.69%) during the coronavirus pandemic. The home improvement chain sells cleaning products and basics like paper towels, trash bags, and other necessities.

Those items have likely been selling, but the chain has also had success in a surprising category. CEO Marvin Ellison shared some details with Fortune that explained what has been selling and why.

Lowe's workers load a pickup truck.

Lowe's has stayed open during the coronavirus pandemic. Image source: Lowe's.

What is Lowe's surprise winner?

The chain has seen an uptick in sales of appliances. This has been led by people buying freezers and refrigerators to help them prepare for extended quarantines and social distancing, Ellison said. Lowe's has also seen an increase in people buying hot water heaters.

"We feel good about where we are, but this is a very fluid situation," Ellison said. "We just don't know what the trends are going to be in two weeks or three weeks."

Ellison refused to specifically say how his company was doing except that it's holding its own. That's a somewhat vague statement, but it makes sense given the uncertainty of the situation.

The strong will win

Lowe's entered the coronavirus pandemic in a strong position and it may exit it even stronger. The retailer is filling both crucial and less essential needs for its customers during this trying time. That should enhance customers' loyalty among regulars while also exposing some new shoppers to the chain.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Lowe's Companies, Inc. Stock Quote
Lowe's Companies, Inc.
$182.84 (3.69%) $6.51

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.