Lowe’s CEO Marvin Ellison on Monday provided a extra optimistic outlook for 2023, saying he does not imagine the financial system will slip into a significant recession.
Throughout a keynote session on the Nationwide Retail Federation’s 2023 expo in New York Metropolis, Ellison stated that whereas there “might be elements of the macro surroundings that we’ll see some kind of slowdown,” he does not imagine there might be “some huge huge financial shock.”
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“We do not see something that we imagine goes to be an enormous, huge recession or financial downturn,” Ellison stated whereas talking with NRF CEO Matt Shay.
Ellison, who took over the corporate in 2018, can be very optimistic about its residence enchancment enterprise heading into its busiest season.
The 2 largest sale quantity months for the corporate are April and Could, in keeping with Ellison. Throughout the spring, there may be sometimes a rise in shoppers who begin residence enchancment tasks on the skin of the house, whether or not that is updating the backyard, portray or updating patio furnishings.
“That is actually our vacation season,” he stated.
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In areas of the nation which might be already experiencing heat climate, Ellison stated the corporate is “beginning to see that enterprise carry out.”
“Particularly for residence enchancment, the demand drivers of our enterprise are nonetheless extremely robust,” he added.
Ellison stated that the age of houses, residence worth appreciation and the steadiness sheet of the patron drive demand for residence enchancment. Presently, Ellison stated that the typical residence within the U.S. is 40 years previous.
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Ellison stated there may be nonetheless roughly $1.5 trillion in extra financial savings within the financial institution accounts of shoppers from early householders in comparison with pre-pandemic occasions.
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He additionally famous that “residence constructing is pushed primarily by rates of interest and costs and people issues shouldn’t have destructive correlations for residence enchancment.”
“Having stated all of that, we’re very optimistic that the house enchancment marketplace for 2023 goes to be very robust, and we really feel like we make the precise stage of investments to have the ability to proceed to take possession.”