Lowe’s reported mixed results for its fiscal second quarter ended July 31, with the home improvement retailer adjusting its full-year outlook downward to reflect softer consumer spending on home projects. The company maintained its full-year guidance range but moved its projections to the lower end, now expecting total sales of $92 billion compared with a prior range of $92 billion to $94 billion, and comparable sales to be flat rather than flat to up 2%. Adjusted earnings per share are now anticipated at $12.25, down from a previous range of $12.25 to $12.75.
For the quarter, Lowe’s posted net income of $2.4 billion, or $4.27 per share, matching year-ago results. On an adjusted basis excluding one-time items, the company reported earnings of $4.40 per share, with tariff refunds contributing 11 cents to per-share results. Total quarterly sales reached $25.96 billion, up from $23.96 billion in the prior year period, while comparable sales grew 0.2%. The company received approximately $80 million in tariff refunds during the quarter.
CEO Marvin Ellison characterized consumer behavior as increasingly cautious, noting that homeowners are observing spending rather than trading down to lower-priced items. Lowe’s experienced a 15.7% increase in online sales, though this gain was partially offset by macroeconomic headwinds affecting do-it-yourself customers. The company’s professional and home services divisions showed strong performance during the period.
Ellison attributed heightened competitive pressures observed in July to competitors deploying tariff refund dollars aggressively, characterizing this dynamic as temporary rather than a structural market shift. Lowe’s chose not to follow competitors’ pricing strategies, citing a commitment to delivering shareholder profitability alongside customer value. The company stated it would prioritize sharing future tariff refunds with customers as it moves through the remainder of the year.
Stock shares rose approximately 2% following the earnings announcement despite the cautious outlook. The results reflect broader challenges facing the home improvement sector, with competitor Home Depot similarly reporting that consumers have not returned to major renovation projects amid what it characterized as frozen housing market conditions.
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