Lowe’s (NYSE:LOW) has lowered its full-year sales forecast as persistent weakness in spending on major home improvement projects continues to weigh on the retailer, with CEO Marvin Ellison pointing to a challenging environment for discretionary DIY purchases.
Shares of Lowe’s fell more than 2% in Wednesday premarket trading following the updated outlook.
High interest rates have prompted homeowners to scale back spending on expensive renovations and remodelling projects, which are often financed through borrowing. At the same time, elevated mortgage rates and higher property prices have continued to constrain activity across the broader U.S. housing market.
In a statement, Ellison said the near-term operating environment “remains dynamic,” including “pressure in discretionary DIY spending.” Nevertheless, continued growth across Lowe’s professional and online businesses helped the company deliver its fifth consecutive quarter of positive comparable sales.
Second-quarter net sales increased 8.3% year on year to $25.96 billion, slightly below the Bloomberg consensus forecast of $26.13 billion. Adjusted earnings per share reached $4.40, up from $4.33 in the same period last year and ahead of market expectations.
However, Lowe’s revised its fiscal 2026 guidance to account for its performance during the first half of the year and the latest trends in customer demand.
The company now expects comparable sales to remain flat compared with the previous year. Its earlier guidance called for comparable sales ranging from flat to growth of 2%. Lowe’s also narrowed its full-year revenue forecast to $92 billion, compared with its previous range of $92 billion to $94 billion.
Lowe’s said its updated guidance incorporates tariff refunds recognised during the second quarter but does not include any potential additional tariff refunds that could be received during the second half of the fiscal year.