May 20 (Reuters) – Lowe’s on Wednesday backed its annual forecasts, joining larger rival Home Depot in flagging a challenging U.S. housing market as cautious households push back big-ticket do-it-yourself projects.
The popular 30-year fixed mortgage rate rose to 6.46% in early April, as the Iran war pushed up oil prices and U.S. Treasury yields, piling more pressure on the housing market already strained by elevated home prices.
Lowe’s shares were down about 3% in premarket trading. They have fallen more than 9% so far this year.
The company beat estimates for first-quarter sales, helped by steady demand from professional customers.
Lowe’s has been investing in its professional (Pro) segment serving small-to-medium contractors, carpenters and builders by expanding assortments and offering job-site delivery.
“Strong spring execution and continued momentum in Pro, Appliances, Online, and Home Services supported a solid start to the year …,” CEO Marvin Ellison said in a statement.
The company expects fiscal 2026 comparable sales of flat to up 2% and adjusted profit to be in the range of $12.25 to $12.75.
The home improvement retailer posted quarterly sales of $23.08 billion, compared with analysts’ estimates of $22.97 billion, according to data compiled by LSEG.
The company posted quarterly adjusted profit of $3.03 per share and recognized $96 million in pre-tax expenses related to the recent acquisitions of Foundation Building Materials and Artisan Design Group (ADG).
Analysts had expected an adjusted profit of $2.97 per share.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Sriraj Kalluvila)
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