Lowe's forecasts downbeat annual sales as customers defer big-ticket home remodels (updated)

Lowes Companies

25/02/2026 11:13

Lowe's CEO cites unpredictable tariffs, high interest rates as challenges

Company beats Q4 sales, profit estimates

Shares down nearly 5% in morning trading

Adds CEO comment in paragraph 4

By Savyata Mishra

Feb 25 (Reuters) - Lowe's Cos LOW.N forecast full-year sales and profit below Wall Street estimates on Wednesday, a more cautious projection than larger rival Home Depot amid a stagnant U.S. housing market and guarded consumer spending.

Its shares, which gained on Tuesday after Home Depot kept its annual forecast intact, fell 5% in morning trading.

"This is a pretty unique environment with unpredictable tariffs, high interest rates and a consumer demand that is not as sustained as we would like it on the DIY side," Lowe's CEO Marvin Ellison said on a call with analysts.

DIY UNDER PRESSURE

The company's do-it-yourself (DIY) business has been under pressure as households paused big-ticket upgrades such as kitchen remodels and flooring installation while awaiting clearer signals on mortgage rates and the broader economy.

In contrast, Home Depot's HD.N focus on professional contractors with large, ongoing jobs has helped it weather the downturn better. The company retained its annual forecast for comparable-sales growth of up to 2% and as much as a 4% increase in profit per share.

Still, executives on Tuesday warned that the effects of a frozen housing market are likely to persist into 2026.

Lowe's has in recent months bulked up its Pro category through deals.

"Lowe's cautious guidance suggests the road ahead may be uneven," Emarketer analyst Zak Stambor said.

"While Lowe's is gaining share, sharper acceleration is likely to hinge on a housing rebound and firmer consumer confidence."

Deepening the gloom, off-price retailer TJX TJX.N underscored the strain on lower-income shoppers with subdued annual forecasts, while shoemaker Steven Madden SHOO.O withheld its 2026 profit expectation on the latest tariff turmoil.

RENEWED TARIFF JITTERS

Lowe's CEO Ellison said the tariff policy remains fluid and that the company, like others, was still reviewing the changes.

The U.S. imposed a new 10% tariff on all non-exempt goods starting Tuesday after President Donald Trump announced a temporary global 10% tariff following a Supreme Court ruling against his earlier duties.

Lowe's forecast 2026 comparable sales to range between flat and up 2%, largely below analysts' average expectation of a 2% rise, according to data compiled by LSEG.

Adjusted earnings per share are projected in the range of $12.25 to $12.75, compared with expectations of $12.95.

Same-store sales at Lowe's rose 1.3% in the fourth quarter - the best since the third quarter of 2022 - beating expectations. Its adjusted profit of $1.98 per share surpassed estimates of $1.94.

Lowe's comparable sales show early signs of rebounding https://reut.rs/4kT0Z33

Home Depot's shares have declined over the past year compared to broader S&P 500 index https://www.reuters.com/graphics/HOME%20DEPOT-RESULTS/xmvjygyedpr/HD_stock_gfx.png

 (Reporting by Savyata Mishra in Bengaluru; Editing by Sriraj Kalluvila)

 ((Savyata.Mishra@thomsonreuters.com;))