Lowe’s Companies Inc (NYSE:LOW) trimmed its full-year sales and profit forecasts after discretionary home-improvement spending remained under pressure, even as the retailer topped Wall Street estimates for the second quarter.
The company now expects fiscal 2026 revenue of $92 billion, down from its earlier range of $92 billion to $94 billion. Comparable sales are now seen flat for the year, compared with a prior forecast of flat to 2% growth.
Lowe’s also lowered its adjusted profit outlook to roughly $12.25 per share, from a prior range of $12.25 to $12.75. Operating margin is now expected at 11.2%, versus a previous range of 11.2% to 11.4%, while adjusted operating margin is seen at 11.6%, down from 11.6% to 11.8%. Capital expenditure is expected at up to $2.5 billion.
For the second quarter, Lowe’s reported revenue of $26 billion, up 8% from a year earlier, though short of analyst estimates of $26.16 billion. Adjusted earnings per share came in at $4.40, beating estimates of $4.22 and up 1.6% from the prior year.
Comparable sales rose 0.2% in the quarter, marking the company’s fifth straight quarter of positive comps. Online sales grew 15.7%. Operating income rose 2% to $3.5 billion, in line with estimates of $3.53 billion, while gross margin stood at 33%. Net earnings totaled $2.4 billion.
The company operated 1,761 stores with 196 million square feet of retail selling space as of the end of the quarter.
“Sustained growth in Pro, Online and Home Services led to our fifth consecutive quarter of positive comp sales, despite pressure in discretionary DIY spending,” said Marvin Ellison, Lowe’s CEO.
“While the near-term remains dynamic, our teams are executing at a high level, advancing our Total Home strategy and investing to drive growth and profitability.”
Shares of Lowe’s gained around 2.6% at the open on Wednesday.
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