The home improvement giant Lowe’s reaffirmed its yearly projections on Wednesday, echoing concerns from competitor Home Depot about difficulties facing the U.S. housing sector as hesitant consumers delay major do-it-yourself renovation projects.
Consumer confidence dropped to an unprecedented low in early May, while mortgage rates climbed to 6.46% last month. The Iran conflict contributed to rising oil costs and Treasury yields, adding strain to a housing market already burdened by high property values.
Lowe’s stock declined approximately 2% during premarket hours Wednesday. The company’s shares have dropped over 9% year-to-date.
According to eMarketer analyst Zak Stambor, home retailers like Lowe’s face reduced renovation demand due to historically low housing turnover rates. However, the maintained projections suggest confidence that professional contractor strength can balance weaker do-it-yourself performance.
Data from the National Association of Realtors this month revealed properties remain on the market longer compared to the same timeframe last year.
Similar to Home Depot, Lowe’s surpassed first-quarter revenue projections due to consistent professional customer demand.
The retailer has focused investments on its professional segment, which serves small and medium contractors, carpenters and builders through expanded product selections and job-site delivery options.
CEO Marvin Ellison stated, “Strong spring execution and continued momentum in Pro, Appliances, Online, and Home Services supported a solid start to the year …”
For fiscal 2026, the company anticipates comparable sales ranging from flat to a 2% increase, with adjusted earnings projected between $12.25 and $12.75.
First-quarter revenue reached $23.08 billion, exceeding analyst predictions of $22.97 billion based on LSEG data.
Store visits increased roughly 2% during the first quarter, according to analytics firm Placer.ai.
The company reported quarterly adjusted earnings of $3.03 per share and recorded $96 million in pre-tax costs from recent purchases of Foundation Building Materials and Artisan Design Group. Analysts had projected adjusted earnings of $2.97 per share.
