Lowe’s lowers forecasts as home improvement demand weakens

Lowe’s has lowered its annual profit and sales forecasts, citing weak home improvement demand, in line with similar concerns from rival Home Depot. The Federal Reserve’s decision to maintain high interest rates due to persistent inflation has dampened home sales, reducing the need for major renovation projects.

Lowe’s now anticipates a 3.5% to 4% drop in comparable sales for the year and adjusted earnings per share between $11.70 and $11.90, down from its previous forecast. Despite beating second-quarter earnings expectations due to cost controls and gains in its Pro business, Lowe’s faces challenges from declining DIY project demand and unseasonably warm weather.