May 26, 2023
Waning demand forces forecast cuts
Lowe's Cos Inc has cut its annual sales and profit forecasts, joining Home Depot in highlighting waning demand for home improvement tools with sticky inflation forcing consumers to cut back on discretionary spending, says a Reuters report. A shift in spending to services, falling lumber prices, and a damp start to the spring season also squeezed sales against the backdrop of inflation-wary consumers pausing larger projects and scouting for cheaper options even for small-scale renovations. Lowe's forecast cut was smaller than Home Depot's. Lowe's expects full-year comparable sales to fall between 2% and 4%, compared to its prior outlook of flat to down 2%. In comparison, Home Depot slashed its same-store sales forecast to a 2% to 5% fall from nearly flat sales.
Sign up for our Daily News Alerts to receive relevant industry news, articles, and previews for our next issue of Home Improvement Retailing. Delivered directly to your inbox. Subscribe here.