Lowe's Trims Forecast as Consumer Spending Stalls

The retailer now projects total annual sales of $92 billion, down from its earlier forecast of up to $94 billion. Adjusted earnings per share are expected to hit $12.25, marking the bottom of the company's prior range. Investors responded to the tempered expectations by sending shares down roughly 2% in premarket trading.

For the second fiscal quarter, Lowe's posted revenue of $25.96 billion, trailing analyst expectations of $26.16 billion. Despite these challenges, the company managed an adjusted earnings per share of $4.40, bolstered by an 11-cent benefit from tariff refunds. Comparable sales saw a modest 0.2% increase, largely driven by strength in the professional and home services segments and a 15.7% surge in online sales. These gains were insufficient to fully counteract the broader pullback in discretionary spending.

CEO Marvin Ellison acknowledged the dynamic near-term environment, noting that teams are focused on the company's "Total Home" strategy to drive growth. The results mirror those of rival Home Depot, which reported a day earlier that customers are increasingly avoiding large-scale projects amid what it described as frozen housing market conditions.