Home Depot and Lumber Liquidators were amongst the companies driving the overall industry sentiment of home improvement stores from 2 to 8 September. The industry saw an impressive change of 41 points, reaching a very positive sentiment value of 49.
Although Home Depot issued a warning for investors in August when it cut its sales forecast for the year, analysts expect sales of $27.46 billion for the current fiscal quarter. Compared to the same quarter last year, this would indicate a positive year-over-year growth rate of 4.4%.
The overall sentiment for Lumber Liquidators Holdings increased as Thomas D. Sullivan, who owns 6% of company shares, said that he was working on a plan to take the company private. Lumber Liquidators announced trimming its full-year outlook last month in the earnings report due to lower customer traffic and uncertain tariff environment.
Meanwhile, the Footwear and Accessories industry dropped by 54 sentiment points. Within the category, Nike and Shoe Zone rank bottom with a sentiment score of -17 and -37 points respectively.
‘Legal dispute’ was amongst the most discussed events in the conversation around Nike as the company was accused of making large payments to players in Nike’s Elite Youth Basketball League. Lawyer Michael Avenatti offered his comments on documents alleging that Nike executives were willing to pay $70,000 to keep them affiliated with the company.
At the same time, Shoe Zone’s CEO Nick Davis resigned from his role. The company’s shares dropped 35% following the news. On 30 August, insider Jeremy Sharman sold 32,000 shares at an average price of GBX 128 ($1.67).
1 Companies that contributed most to last week’s industry sentiment change.
2 Top trending event related to the respective company.
3 Weekly aggregated company sentiment score (ranging from -100 to +100).
4 Weekly aggregated company attention buzz (the percentage by which the number of news, blogs and tweets about an asset deviates from normal attention).
*Industry name and classification as per Morning Star
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