Sales edge higher as guidance is revised
Lowe’s reported a modest year over year sales increase in the third quarter but lowered its full year profit outlook to reflect a more challenging economic environment. Total annual sales are now expected to reach 86 billion dollars, driven in part by the recent acquisition of Foundation Building Materials. Comparable sales are projected to be flat versus last year, down from the previous expectation of flat to up one percent.
The retailer now anticipates adjusted earnings of roughly 12.25 dollars per share, toward the lower end of its prior range. Chief financial officer Brandon Sink said the revised guidance incorporates ongoing economic uncertainty and the impact of the acquisition, which closed in October.
Homeowners remain cautious on larger projects
CEO Marvin Ellison told CNBC that U.S. homeowners remain financially stable but cautious, noting that ongoing headlines about the prolonged government shutdown and higher tariffs are influencing household budgeting. Many customers continue to delay major renovation projects as they weigh whether this is the right moment to invest.
For the quarter, Lowe’s posted adjusted earnings of 3.06 dollars per share, above analysts’ expectations. Sales totaled 20.81 billion dollars, in line with forecasts. Comparable sales rose 0.4 percent, and shares gained more than five percent on Wednesday after the company said the current quarter began with positive momentum.
Industry conditions stay challenging
The wider home improvement market remains constrained by a slower housing sector and elevated borrowing costs. Lowe’s net income fell to 1.62 billion dollars, or 2.88 dollars per share, compared with 1.7 billion dollars a year earlier. Revenue, however, increased from 20.17 billion dollars in the prior year’s quarter.
Competitor Home Depot also lowered its full year profit forecast this week, citing weaker demand, limited storm activity and continued consumer uncertainty. Both companies have noted that elevated mortgage rates and slower housing turnover are weighing on large project spending.
Pro segment and strategic buys offer support
Despite a mixed backdrop, Lowe’s highlighted encouraging trends heading into 2026. Sink said stronger sales among professional customers and continued growth in appliances offer some optimism. He also pointed to “early signs of life” in the company’s home services segment.
Ten of the retailer’s fourteen merchandise divisions posted positive sales growth, including appliances, flooring and kitchen and bath — categories typically tied to higher value projects. Lowe’s continues to expand its professional business, most recently through the 8.8 billion dollar acquisition of Foundation Building Materials. Earlier this year, it also agreed to acquire Artisan Design Group for nearly 1.33 billion dollars to strengthen its design and installation capabilities.
