Keeping with our calendar theme (see previous St. Patrick’s Day post), how about a story tethered to the arrival of Spring? That would be March 20, a welcome day in any climate even if much of the East Coast has been basking in Spring-like weather for a few weeks now.
Spring is a time for “spring cleaning” for homeowners, or repairs and improvements around the house. For many of us, that usually includes a trip to a home improvement store, such as Home Depot (NYSE: HD) or Lowe’s (NYSE: LOW), two companies whose stocks are trading at three-year highs.
Could their much smaller cap peers in home improvement or home furnishings be growing nicely as well? Best to do some due diligence before you invest, but here are some random selections:
Toano, VA-based Lumber Liquidators Holdings Inc. (NYSE: LL, http://www.lumberliquidators.com/ ) is a multi-channel specialty retailer of hardwood flooring, and flooring enhancements and accessories in the US. From its founding in 1993, it has grown to become the largest independent retailer in the country specializing in hardwood flooring (as ranked by Floor Focus Magazine, 2006). The environmentally conscientious company only purchases from suppliers who practice sustainable harvesting, which allows forests to heal and re-grow faster. LL has a $671 million market cap and a 52-week range of $13.43 – $27. It closed March 19 at $24.33, up 37 cents for the day.
San Jose, CA-based Orchard Supply Hardware Stores Corp, (Nasdaq: OSH, http://www.osh.com/ ), through its subsidiaries, operates home improvement retail stores in California. OSH completed its spin-off from Sears Holding Corp on December 30, 2011, and began trading on the Nasdaq market in January. The company, which operates 87 stores, does about $650M in sales a year with a 35 percent gross margin. Orchard has a market cap of $130 million, and a 52-week range of $21.50 – $24.57. It closed March 19 at $21.86, up 5 cents on the day.
Nashville, TN-based Kirkland’s Inc. (Nasdaq: KIRK, http://www.kirklands.com/ ) is a specialty retailer of home décor and gifts in the US, with nearly 300 stores in 30 states, offering various merchandise, including garden-related accessories, wall décor and decorative accessories. Kirkland’s opened its first store in 1966 and has grown steadily since. With a market cap of $315 million and a 52-week range of $7.69 – $17.42, KIRK closed March 19 at $17.19, up 5 cents on the day.
Atlanta, GA-based Haverty Furniture Companies Inc. (NYSE: HVT, http://www.havertys.com/ ) operates as a specialty retailer of residential furniture and accessories in the US. HVT has more than 100 showrooms in 17 states in the Southern and Midwestern regions. The company was founded in 1885 and went public in 1929. Haverty has a 52-week range of $9.47 – 13.76, and a market cap of $267 million. HVT closed March 19 at $12.51, up 48 cents on the day.
Boucherville, Canada-based RONA Inc. (RON.TO, http://www.rona.ca/ ) is involved in the distribution and retail of hardware, home improvement and hardening products inCanada. RONA, which was founded in 1939, operates 800 corporate, franchise and affiliate stores, and has a network of 17 hardware and construction materials distribution centers, as well as 60 plumbing and HVAC sales outlets. RONA has a market cap of $1.2 billion and has a 52-week range of $8.64 – $14.54. It stock closed March 19 at $9.20, down 8 cents on the day.