We are turning the corner in home improvement retail this quarter, says Neuberger Berman's San Marco

Home Improvement Retail - Home improvement sector is expected to turn the corner and start to see positive growth, marking a shift from "bad to less bad" [3] - The surge in rates three years prior is a key factor, as new homeowners typically spend heavily on their homes during this period [4] - Home Depot has strategically built capabilities to better serve professional customers, leading to larger and more planned purchases [6] - Home Depot's advantages have been obscured by the current lukewarm cycle for home improvement [7] Big Box Retail - The general merchandise retail environment has been unusually benign, with limited competition [8] - The impact of tariffs on big box retailers in Q2 is expected to be minimal due to resilient consumer spending [9] - Target faces execution issues and a higher skew towards discretionary items, potentially leading to tougher times [10] Walmart & Grocery - Walmart possesses significant momentum and heft, enabling it to showcase its strengths in Q2 [12] - Amazon's increased investment in grocery and rural areas poses a direct challenge to Walmart [13] - There is a risk of declining economics in the battle for everyday wallet share and customer frequency [14]