Home improvement retailers Home Depot and Lowe’s had enjoyed an 8% boost in share price since August 24 as consumers in Texas and, more recently, Florida scrambled to prepare for Hurricane Harvey and Hurricane Irma.
But the hurricane-stock rally ended Monday with both companies seeing share prices fall, driven by lower-than-expected damage from Hurricane Irma, Lowe’s share price opened at 77.94 and then dropped 1.73% by mid-morning. Home Depot’s shares opened at 158.42 and then fell 1.38%. Both stocks recovered as the trading day progressed, but remain down from their opening price.
While Lowe’s, Home Depot, and Lumber Liquidators saw their share prices fall Monday, the rest of the stock market rallied on news of the weakening Hurricane Irma.
Share prices of the two big-box retailers were buoyed earlier this month by consumers preparing for the storm and investors speculating that prolonged recovery efforts would boost sales. The stores are a go-to source not just for local homeowners, but officials and first responders looking for generators and building materials.
Lowe’s(low) saw its stock price rise from $72.61 on Aug. 24 before hitting $78.56 on September 8. Home Depot’s(hd) stock price followed a similar path, rising from $148.25 on Aug. 24 to $159.66 on Sept. 8.
Three days before Hurricane Harvey made landfall on Texas, Home Depot activated its disaster-response plan, which involved trucking supplies to store’s in the storm’s path and instructing managers to freeze prices and move storm-related merchandise such as plywood, generators, and chainsaws to the front of the store.