Lowe's Falls Further Behind Rival Home Depot After Earnings Miss

Lowe's (LOW) posted earnings on Wednesday that missed estimates. The number two home improvement retailer dropped further behind its rival Home Depot (HD), after failing to take full advantage of the strengthening housing market. The company did report a 4.5 percent rise in quarterly sales, but saw a decline in its gross margin.The DIY chain is now planning to open two stores in Manhattan over the coming months. The company reported earnings of $1.20 a share, missing the predicted $1.24 a share. Revenue came in at $17.4 billion, which narrowly beat estimates of $14.3 billion. Lowe's has under performed in four of the last eight quarters. The stock has gained only around 6 percent this year, trailing Home Depot's 16 percent increase. Lowe's shares were up on the earnings news.