Lowe’s slashes annual forecast as sluggish housing market dents demand

Lowe’s has dramatically lowered its full-year outlook, now predicting flat comparable sales for the fiscal year after second-quarter comparable sales rose just 0.2% and missed Wall Street estimates. The retailer’s weaker-than-expected performance reflects a persistently soft housing market, where high borrowing costs, persistent inflation concerns, and elevated mortgage rates have curbed consumer spending on home-improvement projects. While Lowe’s professional contractor business remained robust, DIY demand continued to lag, setting the company apart from rival Home Depot, which reported stronger-than-expected second-quarter sales on August 18. Lowe’s shares initially climbed as much as 2.4% following the announcement but remain down 11% for the year through August 18, underperforming the S&P 500 Index, which gained 12% over the same period. The company’s revised guidance contrasts sharply with its prior forecast of up to 2% comparable sales growth. Lowe’s attributed the slowdown to cautious consumer behavior amid economic uncertainty, including the impact of geopolitical tensions in the Middle East, which have further dampened sentiment and pushed mortgage rates to their highest level in over a year. The retailer ranks 15th on Transport Topics’ list of top private wholesale/retail carriers, while Home Depot holds the 50th spot on the Transport Topics Top 100 list of largest private carriers in North America and is ranked 27th in the wholesale/retail carriers sector.