Lowe's cuts full-year outlook amid DIY spending pressure

Lowe's Companies, Inc. reported second-quarter sales of $26 billion, up from $24 billion in the previous year, but issued a cautious full-year outlook. The company now expects flat comparable sales for the fiscal year, a reduction from its previous forecast of up to 2% growth.

While comparable sales grew 0.2% in the second quarter, the results highlighted a significant divide between consumer segments. Professional contractor business and home services remained strong, and online sales saw a 15.7% increase. However, do-it-yourself (DIY) spending faced persistent pressure due to high borrowing costs, inflation, and a soft housing market.

Lowe's also noted increased competitive pressure in seasonal categories like grills and patio items, where competitors utilized aggressive pricing and tariff refunds to drive volume. This competitive landscape, combined with macroeconomic headwinds, has led to a more measured approach from consumers regarding large-scale discretionary home improvement projects.