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Lowe's issues cautious outlook as CEO flags 'pressure' in DIY spending
Yahoo Finance • • business
Key Points:
- Lowe's reported second-quarter revenue of $26 billion, slightly below expectations, but adjusted earnings per share beat estimates at $4.27, boosted by tariff refunds.
- CEO Marvin Ellison highlighted ongoing pressure in DIY consumer spending due to macroeconomic and geopolitical uncertainties, though sales grew modestly by 0.2%.
- The company lowered its 2026 sales guidance to $92 billion from a prior range of $92 billion to $94 billion, expecting flat comparable sales amid a challenging housing market.
- Lowe's plans to carefully manage tariff refund benefits to provide customer value without heavy promotions, contrasting with competitors' aggressive discounting strategies.
- Despite cautious consumer behavior, Lowe's customers continue to prioritize innovation and luxury over lowest-price options, with DIY customers comprising 60-65% of revenue.
