By Savyata Mishra
Feb 25 (Reuters) – Lowe’s Cos forecast full-year sales and profit below Wall Street estimates on Wednesday, a more cautious projection than larger rival Home Depot and a sign the retailer expects consumer spending to stay muted.
Shares of the company were down nearly 4% before the bell.
Lowe’s has wrestled with persistent pressure on its do-it-yourself (DIY) business, as households pause big-ticket upgrades such as kitchen remodels and flooring installation while awaiting clearer signals on the labor market, mortgage rates and the broader economy.
“While the housing macro remains pressured, we are focused on directing what is within our control, which includes our ongoing productivity initiatives,” said Lowe’s CEO Marvin Ellison.
In a bid to protect its margins, the company has been cutting jobs and streamlining its operations.
Lowe’s forecast 2026 comparable sales to range between flat and up 2%, largely below analysts’ average expectation of a 2% rise, according to data compiled by LSEG.
It projected adjusted earnings per share in the range of $12.25 to $12.75, compared with expectations of $12.95.
HOUSING MARKET DRAGS
Home Depot posted upbeat results on Tuesday on stable demand in its professional contractor segment, but executives warned that pressures from a frozen housing market will extend into 2026.
Compared to its rival, Lowe’s is more reliant on DIY spending, though in recent months it has bulked up its Pro category through deals.
Management is taking a prudent stance to outlook amid a still‑soft housing market and renewed tariff uncertainty, RBC analyst Steven Shemesh said.
U.S. existing home sales tumbled to the lowest level in more than two years in January as falling inventory raised house prices, highlighting a housing market constrained by higher borrowing costs and tight inventory.
Same-store sales at Lowe’s rose 1.3% in the fourth quarter – the best since the third quarter of 2023 – beating expectations. Its adjusted profit of $1.98 per share surpassed estimates of $1.94.
(Reporting by Savyata Mishra in Bengaluru; Editing by Sriraj Kalluvila)
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