Lowe’s (LOW) stock fell as much as 3% in premarket trading after the company gave a more cautious outlook, citing “pressure” in do-it-yourself (DIY) consumer spending.
In the second quarter, Lowe’s revenue came in at $26 billion, just below the $26.1 billion the Street expected. Adjusted earnings per share, which included a $0.11 benefit from IEEPA tariff refunds, came in at $4.27, above the $4.22 the Street predicted based on Bloomberg estimates.
“Sustained growth in Pro, Online and Home Services led to our fifth consecutive quarter of positive comp sales, despite pressure in discretionary DIY spending,” Lowe’s CEO Marvin Ellison said in the release.
Amid a tough housing backdrop that disproportionately affects DIY customers, Lowe’s same-store sales grew 0.2%, below the 0.7% expected. Sales were boosted by home services, Lowe’s pro business, and online transactions but were “partially offset by persistent DIY macro pressures,” the release said.
The DIY customer made up roughly 60% to 65% of Lowe’s revenue as of the first quarter.
Home Depot (HD) CFO Richard McPhail shared Lowe’s sentiments about pressured consumers on Tuesday, but he noted that customers continued to pursue smaller projects as the company’s quarterly results beat estimates.
McPhail said the team expects housing conditions to remain “frozen” as 30-year fixed mortgage rates remain around 6.7%.
Given that backdrop, Lowe’s updated its guidance, shifting to the lower end of the previously expected forecasts. The company expects total sales of $92 billion in 2026, down from a prior range of $92 billion to $94 billion. Comparable sales are expected to be flat compared to last year; previously, the high end of the range called for a 2% increase.
Lowe’s expects adjusted diluted earnings per share of approximately $12.25, also at the low end of the previously expected range of $12.25 to $12.75.
Brooke DiPalma is a reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.
