Lowe's Issues Cautious Outlook Amid Pressure on DIY Spending
Lowe’s reported second-quarter revenue of $26 billion, slightly below expectations but with adjusted earnings per share beating forecasts at $4.27 due to a tariff refund benefit. Despite the strong performance, CEO Marvin Ellison highlighted ongoing pressure in do-it-yourself (DIY) consumer spending and updated guidance for 2026 sales to the lower end of its previous range. Ellison attributed cautious DIY customer behavior to macroeconomic uncertainty, geopolitical tensions, and high fuel prices. Same-store sales grew only slightly at 0.2%, below expectations, as weather disruptions and competitive promotions impacted performance in outdoor categories. Lowe’s expects flat comparable sales for the year compared to a prior forecast of up to 2% growth. The company plans to use $80 million in tariff refunds strategically but is avoiding aggressive promotional tactics seen from competitors like Home Depot. Both retailers are navigating a challenging housing market with elevated mortgage rates, which have slowed consumer confidence and spending on home improvement projects.
Topics: consumer_spending DIY_market retail