Over the previous few years, the sluggish U.S. housing market has weighed closely on residence enchancment retail, and Lowe’s hasn’t been immune.
After weak sales growth in 2025, the home-improvement retail chain has just lately expanded its deals and providers to win again prospects. As these adjustments roll out, Lowe’s has seen a regarding shift in how prospects are procuring in its shops.
Within the first quarter of 2026, Lowe’s noticed its comparable gross sales improve by 0.6%, in comparison with the identical quarter the yr earlier than, based on its latest earnings report. Additionally, recent Placer.ai data revealed that foot site visitors in Lowe’s shops through the quarter spiked by 2% yr over yr.
The small elevate in demand comes at a time when Lowe’s has been specializing in making the shopper expertise extra seamless, particularly for its Professional prospects (residential and business commerce professionals).
In February, it expanded product access and added digital instruments to its Professional Prolonged Aisle, a digital catalog that offers Professional prospects entry to real-time stock and pricing.
The next month, Lowe’s introduced a HomeCare+ subscription for MyLowe’s Rewards members, providing seven important residence upkeep providers for $99 a yr. Moreover, it started providing free same-day delivery to MyLowe’s Rewards members who make on-line purchases of $25 or extra.
Lowe’s sees a shift in how prospects are procuring
Throughout an earnings call on Could 20, Lowe’s Chief Monetary Officer Brandon Sink revealed that the typical amount of cash Lowe’s prospects spent per buy in comparable retailer areas through the quarter elevated by 1.5% yr over yr.
This was primarily pushed by “modest value inflation” and a lift in equipment gross sales.
Nevertheless, the variety of transactions prospects made at these areas declined by 0.9% on account of continued low DIY (do-it-yourself) discretionary purchases.
Sink stated prospects are scaling again giant discretionary purchases within the DIY class and are as an alternative specializing in tackling smaller residence enchancment tasks.
“DIY (is) nonetheless very a lot participating, however it continues to be within the restore, upkeep, replacement-related classes,” he stated. “… I might say this has been a pattern now for a number of years. The classes which are associated to big-ticket discretionary are these classes in merch divisions that type of proceed to lag.”
Lowe’s CEO Marvin Ellison stated through the name that the corporate is noticing a shift in how higher-income prospects store in comparison with lower-income prospects as financial pressures mount.
“What we have seen to date is what we have seen all yr lengthy, and that’s we’re working and what we’d describe as a Okay-shape financial system the place the higher-income client spends they usually’re spending on innovation, they usually’re spending on issues to modernize their residence, and the lower-income client is just a little bit extra cautious and just a little bit extra unsure based mostly on the entire macro components that everyone knows so nicely,” stated Ellison.
Lowe’s prospects are slicing again on purchases for giant home-improvement tasks.Picture by Scott Olson on Getty Photographs
Lowe’s CEO reveals why prospects are shifting gears
He additionally flagged that challenges within the U.S. housing market are negatively affecting DIY prospects.
“This has been probably the most tough housing market that I’ve confronted on this enterprise for the reason that monetary disaster,” stated Ellison. “It is virtually completely or disproportionately on the DIY buyer. That is the vast majority of the place our income comes from.”
Housing turnover charges have fallen to historic lows since 2022, the identical yr the 30-year fixed-rate mortgage surpassed 6%. After seeing enchancment late final yr, mortgage charges have slowly climbed again up in latest months.
Amid this spike, existing-home gross sales in April elevated 0.2% month over month, however had been flat in comparison with the time interval final yr.
In a press release, Lawrence YunNationwide Affiliation of Realtors chief economist, stated the variety of days houses are staying available on the market is “lengthening on common, implying that buyers are taking their time earlier than making selections.”
Lowe’s leans on worth to elevate buyer demand
As uncertainty within the housing market persists, Lowe’s plans to double down on worth to maintain prospects engaged.
“We proceed to take heed to the shopper, they usually’re taking a look at all these values that we convey to market,” stated William Boltz, government vp of merchandising at Lowe’s, through the earnings name.
“And so, once we take into consideration Q2 (the second quarter of 2026), what’s up in entrance of us coming into this weekend with Memorial weekend, clearly, is proceed to maintain these values entrance and middle for the shopper,” he continued.
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Lowe’s expects its comparable gross sales this yr to both stay stagnant or improve by 2% yr over yr.
“We began this yr with a fairly muted view that we’d have principally flat development total within the residence enchancment sector,” stated Ellison. “And we principally set our steerage to take share and outperform the market.”
In an analyst observe obtained by TheStreet, Financial institution of America analysis analyst Christopher Nardone wrote that his establishment is decreasing its fiscal yr 2026 earnings-per-share (EPS) estimates for Lowe’s by $0.10 to $12.33 to replicate a “weaker” second-quarter gross sales/margin forecast.
“Given the incremental demand and value pressures, we predict the decrease finish of mgmt’s EPS steerage is extra probably absent an enchancment in underlying housing fundamentals,” wrote Nardone within the observe. “Mgmt is leaning into gross sales driving initiatives like promos and advertising and marketing to assist bolster demand in a weak DIY market whereas value pressures are usually not abating.”
It’s critical for Lowe’s to give attention to enhancing the shopper expertise with worth this yr, because it battles financial headwinds. A latest JD Power survey discovered that the corporate lags behind its high opponents within the residence enchancment retail market when it comes to client satisfaction.
The common client satisfaction rating for the U.S. residence enchancment retailers is 672 (on a 1,000-point scale), up 1 level from the identical survey in 2025.
Menards has the best client satisfaction rating, 690.
Residence Depot takes second place with a satisfaction ranking of 679.
Ace {Hardware} falls proper behind Residence Depot with a 673 rating.
Lowe’s client satisfaction rating hit 659, falling under the phase common. Supply: JD Energy
“Though there have been significant good points in most operational areas, buyers can not ignore the rising costs,” stated Michael Taylor, a senior managing director at JD Energy, in a press release. “This sensitivity to worth for value paid has a direct impression on belief within the retailer, as each dimensions noticed a satisfaction lower this yr.”
“Even with the latest emphasis on expertise and supply, residence enchancment buyers nonetheless need in‑retailer recommendation, and retailers that put money into educated, service-oriented employees can be greatest positioned to rebuild belief and drive long-term loyalty,” he continued.
