- Shoppers continue to flock to Home Depot and Lowe’s, as home improvement projects have eclipsed other forms of entertainment spending.
- Investment firm Wedbush Securities highlighted this trend in an August 10 note.
- According to analysts, “reduced travel and entertainment spending” has prompted a shift to home improvement spending.
- Both Home Depot and Lowe’s report second-quarter earnings next week.
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Back before the coronavirus pandemic, people went to the movies, ate out at restaurants, and traveled to faraway places on vacation.
Now that cinemas are shuttered, indoor dining is at reduced capacity, and flights are a risky proposition, consumers’ “fun” budgets are increasingly going towards home improvement projects.
Wedbush Securities equity research analysts Seth Basham and Nathan Friedman highlighted this trend in an August 10 note about two giants in the industry: Home Depot and Lowe’s. Both home improvement retailers have seen major gains from