Lowe's gives muted outlook as it sees 'pressure' in home improvement spending

Lowe's, the home improvement retailer, has lowered its full-year sales forecast due to soft demand for large renovation projects. This is partly because higher interest rates have discouraged homeowners from taking out loans to fund costly home improvements. In addition, rising mortgage rates and higher home prices have put a damper on the broader real estate market.

CEO Marvin Ellison stated that while Lowe's professional and online services continue to grow, there is pressure on discretionary DIY spending in the near term. Despite this, the retailer's second-quarter net sales increased by 8.3% year-over-year, reaching $25.96 billion. Adjusted earnings per share were $4.40, surpassing analysts' expectations.

However, Lowe's has adjusted its outlook for the 2026 fiscal year, projecting flat comparable sales compared to the previous year. The company anticipates total revenue of $92 billion, up from the previous range of $92 billion to $94 billion. The revised outlook factors in tariff refunds from the second quarter but excludes any potential refunds in the latter half of the year.