Aug 19 (Reuters) – Home-improvement retailer Lowe’s said on Wednesday it now expects no growth in annual comparable sales, as consumers remained cautious on expensive renovation projects and discretionary spending.
The company, whose shares dropped 3.3% in premarket trading, earlier expected this year’s comparable sales in a range of flat to up 2% from the previous year.
Higher mortgage rates and limited housing turnover have continued to weigh on demand for larger projects such as kitchen remodels, bathroom renovations and flooring installations.
A slowdown in existing-home sales has reduced renovation activity tied to home purchases, an important demand driver for home-improvement retailers.
Lowe’s biggest rival Home Depot beat quarterly Wall Street sales and profit estimates on Tuesday, helped by strong demand for repair and maintenance and reaffirmed the fiscal guidance.
The company forecast fiscal 2026 adjusted earnings per share of $12.25, at the lower end of its previous expected range of $12.25 to $12.75.
Second-quarter sales of $25.96 billion missed analysts’ average estimate of $26.16 billion, according to data compiled by LSEG.
(Reporting by Angela Christy in Bengaluru; Editing by Joyjeet Das)
