Lowe’s Cos. shares fell about 3% Tuesday, after the home-improvement retailer missed revenue forecasts for the third quarter and lowered its guidance, warning that consumers favor experiences over goods for now.
The company’s bonds also saw net selling on the news, although they have held up well over the past two weeks.
As the following chart from data solutions provider BondCliQ Media Services shows, Lowe’s has a considerable amount of debt that will mature in the next few years, starting with about $2.5 billion in 2025.
The bonds have seen net buying over the last few weeks.
On Tuesday, there was net selling of the bonds.
Spreads, meanwhile, have been tightening and were holding their gains on Tuesday.
Lowe’s earnings reflected the same concerns reported by rival Home Depot last week with its chief executive noting “pressure in certain big-ticket, discretionary categories” when speaking on the company’s earnings call.
Lowe’s stock
LOW,
has fallen 0.4% in the year to date, underperforming the S&P 500
SPX
which has gained 18%.
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