(Yuki Iwamura/Bloomberg News)
February 25, 2026 8:13 AM, EST
Lowe’s Cos. forecast sales guidance for the full year that fell short of expectations, a sign the housing market will remain lackluster in the near term due to high borrowing costs and economic volatility.
The company said it expects comparable sales to be flat to as much as 2% higher compared with the prior year. The midpoint of that range is lower than what Wall Street analysts were expecting for the period. Lowe’s comparable sales and adjusted earnings for the fourth quarter ended Jan. 30 beat estimates.
U.S. consumers have held off on moving or upgrading their homes over the past three years as interest rates remain elevated and inflation worries reverberate across the country. The results underscore that the housing market is far from a rebound, with households postponing big-ticket purchases.
The company said Feb. 25 that the housing market remains pressured and that it’s focusing on improving productivity and other factors it can control.
Shares fell about 3% in premarket trading in New York. The stock had gained about 16% this year, outpacing the S&P 500 Index.
There are some early green shoots for Lowe’s and other housing-focused operators, which have reported soft sales in recent years. U.S. mortgage rates have been declining in recent months, while median home prices are staying relatively flat. These could serve as catalysts for reinvigorating the housing market, but there has yet to be any notable change in demand.
Americans remain concerned about inflation, job losses and other macroeconomic factors. They are spending on necessities and new items that they find valuable, but are deferring large discretionary projects. While homeowners represent one of the healthier consumer cohorts, many are putting off home improvement projects with the hope of moving in the coming years when rates fall.
Still, people aren’t changing their buying philosophies. Rival Home Depot Inc. said Feb. 24 that customers are not broadly trading down with the exception of a few product categories, like appliances and countertops. The company expects comparable sales to grow up to 2% this year.
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Lowe’s is among the latest retailers to report quarterly results as investors look for clues on the health of the consumer and indications of how the latest trade policies will impact companies. The Supreme Court struck down President Donald Trump’s expansive global levies last week, and he has since promised new tariffs.
During the persistent slowdown, home improvement retailers have sought to expand offerings for professional contractors who spend more than do-it-yourself customers. E-commerce has been among the bright spots for the industry.
Lowe’s ranks No. 15 on the Transport Topics list of the top private wholesale/retail carriers. Home Depot ranks No. 50 on the Transport Topics Top 100 list of the largest private carriers in North America and No. 23 on the wholesale/retail carriers sector list.
