Lowe Down

Well I do my best to understand dear
But you still mystify
And I want to know why
--Nick Lowe

A couple of days ago I stopped at my local Lowe's (LOW) to browse some plants. The garden center was a wreck. Flowers wilting from lack of water. Potted plants knocked over with dirt spilled in the aisle ways. Items in the wrong place. Long lines at only one open register.

Hard to imagine a retail store that appeared more poorly managed.

This week many retailers have been reporting their quarterly earnings. Ahead of retail earnings reports, many investment firms conduct 'channel checks'--on the ground observations of how things are moving thru the stores.

While the same size of my personal channel check on Lowe's was certainly tiny and unscientific, it did not project well to the corporation at large.

This morning LOW reported an ugly quarter and reduced guidance for the year. The stock is blowing up out of the gate.

No surprise here. Just wish I was short the name...

no position