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Lowe’s (LOW) reported mixed results for its second quarter. TD Cowen Director Max Rakhlenko joins Yahoo Finance Live to discuss the company’s earnings. “Lowe’s had good numbers” and “overall, the company is doing a really nice job of executing in a very mixed to tough backdrop,” Rakhlenko says.

Lowe’s “pro environment remains better than DIY and we are seeing pro continue to outperform,” Rakhlenko notes. “Lowe’s has done a really nice job with the pro business for the last several years. They’re really looking to take market share with the smaller pros, whereas” Home Depot (HD) is “really focused on those large and much more complex pros,” Rakhlenko explains. Lowe’s pro business “is doing well, but the size of the business today does remain much smaller than where Home Depot is,” Rakhlenko says. 

Rakhlenko says for Lowe’s margins, “management has done a great job over the last handful of years, of really improving operations, both at the store level as well as HQ… but we still think that they have several years more to go.” “We are seeing an improvement in margins” and we think some of the company’s “initiatives that they’ve got going… are going to help margins in the back half of the year,” Rakhlenko says.