Home Depot, Lowe's Keep Eyes on the Prize

"They're focused on fixing what they have," says Binder, "which includes everything from merchandising, systems, distribution, store experience and customer service, to name a few."

Until the larger business climate changes, both Home Depot and Lowe's will be at the mercy of economic forces beyond their control. Lowe's can only expand so much, and Home Depot has found that better service isn't enough to bring in waves of new shoppers. Although both chains have seen an uptick in sales of outdoor-related products as the weather warms up, their outlooks remain cautious for the rest of this year.

But being cautious doesn't mean refusing to move forward. By keeping their larger goals in mind, both companies are doing the best they can with weak hands. But the ultimate payoff may be worth it: a far stronger company in the years ahead.