Lowe’s, Inc. (NYSE:LOW) will be likely be the largest beneficiary of increased demand in home-improvement supples relating to Hurricane Florence.
Tens of thousands of homes have been damaged in Wilmington, North Carolina, and the National Weather Service has warned that the worst is “still to come.” Checks on Lowe’s home-improvement stores within 175 miles of Wilmington, NC showed that more than 3/4ths of the stores were “busy” in the several days leading up to the storm, with nearly half open on Friday night during the most intense phase of the storm.
CNBC provides more information:
The analyst called 85 Lowe’s stores in the storm-affected area and noted nearly half of them were open on Friday night. The checks also revealed more than three-quarters of the stores were “busy” in the days preceding the storm’s arrival.
As a result, Matuszewski estimates the storm will add more than 50 basis points of incremental same-store sales to the retailer’s results.
Flooding is predicted to continue in the Carolinas where major efforts will have to be taken to repair houses, buildings, and other forms of infrastructure.
Lowe’s, Inc. shares . Year-to-date, LOW has gained 26.79%, versus a 10.06% rise in the benchmark S&P 500 index during the same period.