Hechinger Co. reported lackluster sales comparisons for November yesterday, but the company took comfort in the fact that the results were up against a strong month from last year.
Hindered by continued intense competition in the home-improvement industry, sales in established Hechinger Co. stores fell by 1 percent last month compared with sales in November 1993. But the year-ago figures were up 9 percent from November 1992.
Hechinger, based in Landover, operates 72 Hechinger stores and 61 Home Quarters Warehouse stores in 23 states and the District of Columbia.
The company has come under increased pressure this year as powerful competitors such as Home Depot Inc. and Lowe's Cos. have continued to set up shop near Hechinger locations. The dTC competition has affected both the sales and the profits of all three companies.
"During a war, you don't want to own either the survivors or the casualties," said Kenneth Lucas, who follows Hechinger for Johnston, Lemon & Co., a Washington investment house. "Everybody gets hurt during the price wars. You want to pick them up after the casualties have already happened."
Mr. Lucas has rated Hechinger a "hold" for two years. But recently he's been impressed with the company's progress, especially since the price of its "A" shares has fallen into the $9 range from $16.50 earlier this year. The stock closed yesterday at $9.56, down 62 1/2 cents.
His hold rating stands, but "if I was leaning I certainly would not be leaning toward the sell point," he said.
Based on the company's continued expansion of the Home Quarters division and the stabilization of the Hechinger division, "I would say the prospects look better now than they have the last few years," he said.