Lowe’s operates in a highly cyclical business. Its financial performance depends on the fundamentals of the US economy, and to a lesser extent, the Canadian and Mexican economies. Personal incomes, discretionary consumer spending (FXD) (XLY) (VCR), housing market (XBH) (ITB) cycles, and interest rates are some of the macro drivers that can take a severe toll on the company’s performance, or boost it.
Lowe’s and Home Depot posted same-store sales declines during the Great Recession with store comps falling between fiscal 2007 to fiscal 2010. In contrast, low price operators like Dollar Tree (DLTR) and Dollar General (DG) thrived with positive comps growth over the period.
View more information: https://marketrealist.com/2016/01/swot-analysis-lowes-strengths-weaknesses/