Dive Brief:
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Fallout from The Home Depot’s September data breach appears to be no match for the recovering economy, as the big-box home-improvement retailer reported higher-than-expected sales in the third quarter.
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Similarly, third-quarter earnings by competitor Lowe’s improved by 17%, while Home Depot’s jumped by 14%. After starting the year slowly as bad weather and sluggish home sales hampered building and remodeling projects, both companies have benefited from recent gains in job creation and the housing market.
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That The Home Depot's performance slightly trailed that of Lowe's is likely due to The Home Depot’s third-quarter costs related to its data breach. The company has said it does not know how much the breach will cost it in future quarters.
Dive Insight:
Ironically, the same cold weather that chilled sales at the beginning of 2014 has returned to improve big-box business as do-it-yourselfers and remodelers buy products like portable generators and weather-stripping to protect their homes as winter approaches. Still, predictions of severe winter weather, coupled with a cold snap this week that sent temperatures in parts of all 50 states below freezing, could keep shoppers at home during the holidays—typically the year’s busiest retail season.