Lowe's issues cautious 2026 forecast as customers delay big home projects

Lowe's forecast for full-year sales and profit came in below Wall Street estimates as the retailer said customers are deferring costly home remodels; same-store sales rose 1.3% in the fourth quarter and adjusted profit topped estimates.

Lowe's has issued a cautious full-year forecast after reporting fourth-quarter results. The company projected comparable sales of flat to up 2% for 2026 and adjusted earnings per share of US$12.25 to $12.75. Management said households are pausing big-ticket upgrades such as kitchen remodels and flooring while broader economic signals remain unclear. The retailer has been cutting jobs and pursuing productivity initiatives to help protect margins. Key facts: - Full-year comparable sales forecast of flat to up 2%, below analysts' average expectation of a 2% rise, according to LSEG. - Adjusted earnings per share projected at US$12.25 to $12.75, compared with analysts' expectation of US$12.95. - The article reports weaker do-it-yourself demand as customers defer costly remodels; CEO Marvin Ellison said the company is focusing on what it can control, including productivity measures. - Same-store sales rose 1.3% in the fourth quarter and adjusted profit was $1.98 per share, above the $1.94 estimate; the company's shares were down nearly 4% before the bell. Summary: Lowe's guidance came in below Wall Street expectations and signals the company expects consumer spending on large home projects to remain muted. Management is trimming costs and streamlining operations to defend margins amid a soft housing backdrop. Undetermined at this time.