Lowe's Cautious Outlook Sends Stock Lower Amid DIY Spending Pressure
Lowe's (LOW) shares fell as much as 3% in premarket trading after the home improvement retailer issued a more cautious outlook, citing pressure on discretionary do-it-yourself spending. In Q2, Lowe’s reported revenue of $26 billion—just below expectations—and adjusted earnings per share of $4.27, which beat forecasts due to IEEPA tariff refunds. Despite strong performance in Pro services, online sales, and home services driving five consecutive quarters of positive comp sales, same-store growth came in at 0.2%, under the expected 0.7%. The DIY segment accounts for roughly two-thirds of Lowe’s revenue but is being impacted by a challenging housing market. Lowe's revised its full-year guidance to reflect lower expectations amid ongoing macroeconomic pressures and high mortgage rates, which have kept home buying activity subdued. It now forecasts total sales of $92 billion in 2026—down from the previous range—and expects flat comparable sales growth compared to a prior target of up to 2%. Adjusted diluted earnings per share are expected at around $12.25, also toward the low end of its earlier guidance.
Topics: consumer_spending DIY_market retail