Looking back through my notes on Lowe's
Results for the company's third quarter were once again quite good. Revenue rose almost 17%, fueled in part by same-store sales growth greater than 6%. Interestingly, for the first time since I started following Lowe's, all product categories showed positive comps for the quarter. So while gas prices may be pinching consumers, those same people are still spending on their domiciles.
Performance in margins and earnings was also solid. Margins improved a bit (and when you're this big, "a bit" adds up to a lot of dollars), and net earnings grew nearly 26%. Cash flow growth was also notable -- operating cash flow rose by better than 50%, and the company produced around $1 billion in free cash flow. Given the considerable ongoing pace of expansion (a 13% increase in selling space over last year), that's a pretty solid performance in my book.
While there's no such thing as a fail-safe retail concept, I think investors would do well to put all of the economic Pollyanna-ism in perspective. People are still going to buy food and clothing and if times get tough, they'll just buy more of it at Wal-Mart
In other words, remember that not all retail is the same. We can all live without the newest Apple
For more retail ruminations:
Best Buy is a Motley Fool Stock Advisor recommendation.
Fool contributor Stephen Simpson has no financial interest in any stocks mentioned (that means he's neither long nor short the shares).