Revenue Growth: Lowe’s Outperformed Home Depot in 2Q17
Lowe’s revenue growth
With revenue growth of 6.8%, Lowe’s (LOW) outperformed Home Depot. In 2Q17, Lowe’s posted revenue of $19.5 billion—compared to 18.3% in 2Q16.
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Lowe’s revenue growth was driven by the acquisition of RONA Maintenance Supply Headquarters and Central Wholesalers, positive SSSG (same-store sales growth), and the addition of new stores. RONA, which was acquired in May 2016, generated $1.0 billion in sales, which contributed 3.0% towards the revenue growth. By the end of 2Q17, the company operated 2,141 stores—compared to 2,108 stores in 2Q16. The net addition of 33 stores and SSSG of 4.5% drove Lowe’s 2Q17 revenue.
Home Depot’s revenue growth
In 2Q17, Home Depot (HD) posted revenue of $28.1 billion—growth of 6.2% from $26.5 billion in 2Q16. The revenue growth was driven by positive SSSG and the net addition of seven stores in the last four quarters. During the quarter, the company’s online sales, which form 6.4% of the total revenue, grew 23.0% year-over-year. In the international business, Canada and Mexico posted positive SSSG. However, the stronger US dollar lowered the company’s revenue by $64.0 million or $0.20%. During the quarter, the company’s sales per square foot increased from $438.61 in 2Q16 to $464.38—growth of 5.9%.
In the next part, we’ll discuss Home Depot and Lowe’s SSSG.