Lowe's Companies, Inc. reported second-quarter total sales of $26.0 billion, up from $24.0 billion in the prior year. Despite this increase, comparable sales grew by only 0.2%, missing analysts' estimates of 0.8% growth. The company's diluted earnings per share (EPS) for the quarter was $4.27, matching the prior year, while adjusted diluted EPS, excluding acquisition-related expenses and including a tariff refund benefit, was $4.40, a 1.6% increase. This performance led to a revision of its full-year outlook.
Lowe's updated its fiscal year 2026 guidance, lowering its total sales forecast to $92.0 billion from a previous range of $92.0 billion to $94.0 billion. The company now expects comparable sales to be flat, down from a prior projection of flat to up 2%. Operating income as a percentage of sales (operating margin) is anticipated to be 11.2%, and adjusted diluted EPS is projected at $12.25, compared to the earlier range of $12.25 to $12.75. These adjustments reflect persistent pressures on discretionary DIY spending and a difficult housing market, which impacts larger renovation projects.
CEO Marvin R. Ellison attributed the positive comparable sales growth, now at five consecutive quarters, to strong performance in the Pro segment and home services, along with a 15.7% increase in online sales. He acknowledged that the DIY segment, which constitutes 60% to 65% of Lowe's revenue, remains under pressure due to macro uncertainty and elevated fuel prices. Despite the challenging environment for DIY customers, the company is optimistic that ongoing investments in its Total Home strategy, including loyalty programs and fulfillment capabilities, will yield returns when DIY demand recovers. Analysts noted that Lowe's second-quarter results largely mirrored Home Depot's, with both retailers experiencing consumers avoiding big-ticket projects, though Lowe's saw slightly more pressure in DIY demand.
