By Sabrina Escobar

The winter storm that sent Americans scurrying to buy snowblowers, shovels, and rock salt now has them in a deep freeze. And the cold brings a host of new headaches -- frozen pipes, damaged roofs, and power outages.

But the bane for homeowners could drive demand for home improvement retailers and builders in the coming weeks, analysts said.

Their warming outlook is based both on the past and the present.

Citi analyst Anthony Pettinari found that previous winter storms had driven demand for many home improvement categories.

"The storm itself is likely to slow activity between producers and distribution points," Pettinari wrote on Monday, "but contractor activity should pick up when the storm passes, boosting distributor out-the-door sales."

Materials distributors, such as Owens Corning and QXO, should get an uptick in sales from storm recovery. So should the retailers that sell materials to contractors, such as Home Depot and Lowe's.

Ahead of last weekend's Winter Storm Fern, demand spiked for supplies needed to ride out the nasty weather.

Jefferies analyst Jonathan Matuszewski pointed out that Tractor Supply had a surge in both hits to its website and store visits. At the stores, wood and fuel-burning stoves, kerosene, generators, and heat lamps for animals were "flying off the shelves," he wrote.

Grocers also saw shoppers stock up. Photos of empty shelves and long checkout lines flooded social media. Costco Wholesale has noted that extreme weather increases its same-store sales.

So far, stocks in the sector haven't felt the glow of Pettinari's and Matuszewski's predictions.

In midday trading Tuesday, Home Depot and Lowe's were down -- 1.9% and 1.7%, respectively. Both stocks are up more than 10% this month. On Wall Street, Costco was down 1.3%, but Tractor Supply was up a hair -- 0.3%. Both stocks also have gained 10% this year.

And Barclays analyst Seth Sigman is almost gloomy about the broader retail sector. He expects a good number of names won't get any respite from the ice, snow, and cold.

Many companies selling discretionary items stand a good chance of seeing a weaker end to the fourth quarter, Sigman predicted. Sales more than likely will be tamped down by selling days lost to the snowstorm, lingering store closures, supply-chain delays, and shoppers riding out the frigid temperatures at home.

And the bad news, or good news, depending on your perspective: There's more snow in the forecast for this coming weekend.

Write to Sabrina Escobar at sabrina.escobar@barrons.com

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January 27, 2026 13:40 ET (18:40 GMT)

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