In the following video, analysts Brenton Flynn and Austin Smith discuss recent news in home improvement retail. On Monday, Lowe's, second only to Home Depot in the U.S., reported disappointing earnings that fell below expectations. It's amusing that a company that serves professional remodelers is in need of its own makeover, with the company continuing to lose market share to its larger rival. Lowe's underperformance is most obvious at the store level, where same-store growth has lagged Home Depot considerably. That dynamic has allowed the latter to operate its stores much closer to pre-financial crisis productivity, while Lowe's is running about 10% below those levels today.
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Austin Smith has no positions in the stocks mentioned above. Brenton Flynn has no positions in the stocks mentioned above. The Motley Fool owns shares of Lumber Liquidators. Motley Fool newsletter services recommend Lumber Liquidators, Home Depot, and Trex Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.