Lowe’s cuts annual sales growth forecast as consumers curb high-cost renovations

Home-improvement giant Lowe's has revised its annual sales growth forecast downward, citing consumer hesitation to undertake costly renovation projects and limited discretionary spending. The company, which saw its stock prices fall by 3.3% in premarket trading, had previously projected this year's comparable sales to either remain stable or increase by up to 2% compared to the previous year.

Factors such as higher mortgage rates and reduced housing turnover have continued to dampen demand for major renovations, including kitchen remodels, bathroom renovations, and flooring installations. The declining trend in existing-home sales has also reduced renovation activity linked to home purchases, a key sales driver for such retailers.

Lowe's main competitor, Home Depot, outperformed Wall Street's sales and profit estimates on Tuesday, driven by robust demand for repairs and maintenance, and reaffirmed its fiscal guidance. The company now expects fiscal 2026 adjusted earnings per share of $12.25, which is at the lower end of its previously anticipated range of $12.25 to $12.75. However, second-quarter sales of $25.96 billion fell short of analysts' average estimate of $26.16 billion, as reported by data gathered by LSEG.