Lowe's, which has been struggling for some time due to (among other things) lack of a merchandising strategy, was coming off a disappointing first quarter, for which management blamed the weather. Meanwhile, Home Depot post better-than-expected first-quarter results and raised guidance.
I warned that if Lowe's was serious about narrowing the gap with Home Depot that it needed to adhere to its own slogan and "never stop improving."
On Monday, the company revealed its plans by offering $205 million in cash for Orchard Supply (OSH).One of my biggest criticisms of Lowe's had been the company's lack of a store-expansion strategy and management's unwillingness to take risks.
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