Lowe’s Says Homeowners Remain Reluctant to Remodel

Lowe’s is expecting a level home-improvement marketplace successful 2026 arsenic stalled lodging sales, precocious involvement rates and economical uncertainty proceed to pb homeowners to hold remodeling and repair projects.

“Our outlook for 2026 remains cautious fixed the persistent volatility successful the lodging macro,” said Chief Executive Marvin Ellison successful the company’s net call. “This uncertainty continues to unit big-ticket discretionary [do-it-yourself] projects, arsenic galore consumers are reluctant to marque important investments successful their homes.”

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The home-improvement retailer’s net guidance for 2026 missed expectations and shares fell 5% to $264.54.

On Tuesday, Home Depot said it was seeing unit from economical uncertainty and a frozen lodging market.

Ellison echoed those comments Wednesday, saying, “Consumer assurance remains subdued fixed inflationary pressures and wide economical uncertainty.”

“A persistent lock-in effect remains successful place, keeping lodging turnover and new-home starts nether pressure, starring america to expect betterment successful some the lodging and home-improvement markets to beryllium gradual,” Ellison said.

While galore homeowners volition person larger taxation refunds this year, “It is unclear however overmuch of that volition beryllium spent connected location improvement,” said Chief Financial Officer Brandon Sink. “It is besides unclear erstwhile owe rates volition ease, which volition proceed to exert unit connected existing location income and new-home construction.”

Lowe’s said it expects the home-improvement marketplace to beryllium down 1% to up 1% successful 2026.

But adjacent amid the downturn, the institution has generated gross maturation done its concern supplying nonrecreational builders. Home Depot and Lowe’s are competing for the much accordant spending of nonrecreational customers, peculiarly arsenic consumers hold ample remodels and DIY projects, analysts say.

In October, Lowe’s completed its $8.8 cardinal acquisition of Foundation Building Materials, marking a important leap into the professional-builder marketplace pursuing ample acquisitions by Home Depot.

For the 4th quarter, Lowe’s reported income of $20.58 billion, up from $18.55 cardinal the twelvemonth prior. Wall Street had expected $20.34 billion, according to FactSet.

Comparable income roseate 1.3%, which the institution said was “driven by continued maturation successful Pro, online, and home-services sales, arsenic good arsenic beardown vacation performance.” Analysts had expected comparable income maturation of 0.2%.