Shares of Lowe’s Companies, Inc. (NYSE:LOW), and The Home Depot, Inc. (NYSE:HD) slipped in midday trade Thursday, dragged lower by Lumber Liquidators Holdings Inc. (NYSE:LL) and Tractor Supply Company (NASDAQ:TSCO), which both pre-announced weaker-than-expected Q2 results that missed Street expectations.

On Wednesday, Lumber Liquidators estimated Q2 earnings will fall to $0.59 to $0.61 a share from $0.73 a year earlier, missing the consensus estimate of $0.91 as measured by Capital IQ. The hardwood flooring retailer said the weakness in sales was not only caused by bad weather, but also by consumers’ putting off home-improvement projects until the fall or next spring.

“The improvement in customer demand we experienced beginning in mid-March did not carry into May, and June weakened further,” said LL CEO Robert Lynch. “Our reduced customer traffic has coincided with certain weak macroeconomic trends related to residential remodeling.”

TSCO said Q2 net sales increased 8.8% to $1.58 billion from $1.46 billion a year earlier. The Capital IQ consensus estimate is for $1.6 billion. The company expects Q2 EPS at between $0.94 to $0.95. The Capital IQ figure is $1.02. In a note on Thursday, Deutsche Bank analysts cut their Q2 comparative sales growth forecast on Lowe’s to 4% from 4.5% and on Home Depot the forecast was lowered to 4.5% from 5% based on the weak results reported by LL and TSCO.

According to Deutsche Bank analyst Mike Baker, the comparative sales of Lowe’s and Home Depot “have historically had a positive correlation with” the comparative sales of Lumber Liquidators and Tractor Supply. Baker noted that Lumber Liquidators, much like Home Depot and Lowe’s, is exposed to housing markets and that Home Depot and Lowe’s are also exposed to the outdoor/weather sensitive sector, much like Tractor Supply. However, Baker added that differences exist between the companies’ business models, and that Home Depot and Lowe’s comparative sales are likely trending better than those at Tractor Supply and Lumber Liquidators.

Baker maintains Q2 EPS estimates on Home Depot and Lowe’s at a penny below consensus levels, and reiterated a buy rating on Lowe’s and hold ratings on Home Depot and Tractor Supply. In midday trade, LOW shares were down 1% to $47.35, HD shares were off 1.6% to $79.42, TSCO was down 2% to $60.13 and LL shares plummeted 20% to $56.07.

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