Lowe's Q3 Earnings Preview: Can the Home Improvement Retailer Expand Profit Margins?
The calendar year 2020 was a phenomenal year for Lowe's (NYSE: LOW). The company thrived by serving a population stuck at home indefinitely. All of a sudden, people had to do more things at home that they were accustomed to doing elsewhere; think exercising, remote learning, and remote working.
All the changes required adapting your home with fixtures and additions that Lowe's provided exceptionally well. Customer demand has remained elevated even as economies reopen, and one of the new challenges for Lowe's is to deliver on that demand. That's becoming increasingly more difficult as supply chain disruptions and rising costs are hitting businesses worldwide. That's why operating profit margin is one thing investors will focus on when Lowe's reports third-quarter earnings on Nov. 17.
Lowe's stock is up 46% in 2021. Image source: Getty Images.
Source Fool.com
