Employees are heavily pushed to sign customers up for Lowe’s Pro accounts/cards, including people who aren’t actually contractors or professionals. They routinely sign up 70 year old grannys by winking and nudging at them and telling them to say yes when they ask if they were a paid contractor to get a Pro card. They’re just regular retail customers who get pushed into the Pro ecosystem.
How much of Lowe’s reported Pro/customer growth represents actual growth in professional contractors, and how much is simply existing DIY customers being reclassified as Pros? Basically none, I suspect.
The stock is down because they even admitted the DIY customer base is weakening and has a bad outlook. They are trying to trick idiot investors by making them think they are growing their contractor base but it's the complete opposite.
They also try and push their garbage 35% APR credit card on customers relentlessly which is pissing people off and making them lose customers. The CEO is a complete idiot who also helped destroy JC Penneys
Position: Lowes 125 puts 12/27