Home improvement retailer Lowe’s delivered disappointing projections for the coming year on Wednesday, signaling that consumers will continue holding back on major home renovation spending.
The company’s stock dropped 3% in pre-market trading following the announcement.
For 2026, Lowe’s anticipates comparable store sales will either remain unchanged or increase by up to 2%, falling short of the 2% growth that Wall Street analysts had predicted, based on LSEG data.
The retailer also set its adjusted earnings per share forecast between $12.25 and $12.75, missing analyst expectations of $12.95.
Lowe’s continues to face challenges in its do-it-yourself customer segment, as homeowners are postponing expensive projects like kitchen renovations and new flooring while they monitor job market conditions, interest rates, and overall economic stability.
“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.
The company recently eliminated 600 positions in corporate and support functions last month, affecting less than 1% of its workforce, as part of efforts to maintain profit margins.
Meanwhile, competitor Home Depot reported stronger results the previous day, benefiting from steady business with professional contractors, though its leadership cautioned that housing market challenges will continue through 2026.
The broader housing market remains strained, with existing home sales in the United States dropping to their lowest point in over two years during January. Limited housing inventory has driven up prices, creating additional pressure from elevated borrowing costs.
Despite the cautious outlook, Lowe’s fourth-quarter performance exceeded expectations, with same-store sales climbing 1.3% and adjusted earnings reaching $1.98 per share, topping the anticipated $1.94.
