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Lowe’s cuts outlook as organic growth stays near flat
Second-quarter organic comparable sales rose 0.2%, well below the 0.8% expected, even as adjusted diluted earnings topped consensus.
Lowe’s Companies cut its full-year sales outlook after reporting an earnings beat alongside weak underlying demand, according to Yahoo Finance. In the second quarter, total sales rose about 8.3% to $25.96 billion, supported by acquisitions, but organic comparable sales increased only 0.2% versus 0.8% expected.
The home improvement retailer reported diluted earnings of $4.27 per share and adjusted diluted earnings of $4.40 per share, which exceeded the $4.22 FactSet consensus estimate. Results also included a $0.11-per-share benefit from tariff refunds.
Looking ahead, management reduced its full-year sales forecast to $92 billion and now expects comparable sales to be approximately flat. The company attributed pressure to persistent weakness in discretionary DIY spending and softer housing trends that affect its Foundation Building Materials and Artisan Design Group businesses.
Lowe’s said pro, online, and home services growth helped it maintain positive comparable sales for a fifth straight quarter, with online sales up nearly 16%. However, the company warned that DIY and subdued housing activity are weighing on the broader demand backdrop, even as consumers prioritize repairs over larger projects.