Lowe’s Makes First Purchase in 12 Years
Lowe’s (NYSE:LOW) said Thursday it bought online home-improvement retailer ATG Stores for an undisclosed amount to expand its product offerings and better its Internet business, a key growth area. Expanding mostly through organic growth, this is the first Lowe’s purchase since buying Eagle Hardware on the West coast more than 12 years ago, said spokeswoman Chris Ahearn.
ATG, based in Kirkland, WA, started in 1999 with the launch of a web site. Now ATG has expanded to a collection of more than 500 web sites selling a wide range of items, including furniture, hardware, beauty and apparel.
Closely-held ATG carries 3.5 million stock-keeping units from over 3,300 manufacturers and has two retail locations in its home state.
Here’s how home improvement retailers are reacting to the news:
Lowe’s Companies Inc. (NYSE:LOW): LOW shares recently traded at $25.54, up $0.48, or 1.92%. They have traded in a 52-week range of $18.07 to $27.45. Volume today was 5,642,886 shares versus a 3-month average volume of 16,842,400 shares. The company’s trailing P/E is 18.70, while trailing earnings are $1.37 per share.
The Home Depot, Inc. (NYSE:HD): HD shares recently traded at $41.79, up $0.26, or 0.63%. They have traded in a 52-week range of $28.13 to $42.47. Volume today was 3,174,363 shares versus a 3-month average volume of 11,407,400 shares. The company’s trailing P/E is 18.01, while trailing earnings are $2.32 per share.
To contact the reporter on this story: Jim Wilkerson at firstname.lastname@example.org
To contact the editor responsible for this story: Damien Hoffman at email@example.com