Lowe's Follows Leader

During a conference call with analysts Monday, CEO Niblock said that Lowe's lowest same-store sales were in the areas that had seen a lift in sales during intense hurricane rebuilding efforts last year. There were also weak sales in California and in the Northeast, where home prices appreciated slowly or declined.

Meanwhile, the holiday season likely won't be particularly merry for either Lowe's or Home Depot. C. Brit Beemer, chairman and founder of consumer research firm America's Research Group, says the retailers "lack the driving power to get on many shopping lists for Christmas," as most consumers are focused on buying gifts rather than improving their homes.

"Lowe's has a solid track record," Beemer says. "They have a good operation and the customers are relatively happy. They're in a battle with Home Depot and I think in retail it's good to have an enemy. It gives you something to focus on."