Feb 25 (Reuters) - Lowe's Cos forecast full‑year sales and profit below Wall Street estimates on Wednesday, a more cautious projection than larger rival Home Depot and a sign the retailer expects consumer spending to stay muted.
Shares of the company were down 3% before the bell.
Lowe's expects 2026 comparable sales to range between flat and up 2%, largely below analysts' average expectation of a 2% rise, according to data compiled by LSEG.
It projected adjusted earnings per share in the range of $12.25
to $12.75, compared with expectations of $12.95.
The company has wrestled with persistent pressure on its do-it-yourself business, as households pause big-ticket upgrades such as kitchen remodels and flooring installation as they wait for clearer signals on the labor market, mortgage rates and the broader economy.
"While the housing macro remains pressured, we are focused on directing what is within our control, which includes our ongoing productivity initiatives," said Lowe's CEO Marvin Ellison.
Last month, the company cut 600 corporate and support roles, representing less than 1% of its total workforce, in a bid to protect its profitability.
Home Depot posted upbeat results a day earlier on stable demand in its professional contractor segment, but executives warned that pressures from a frozen housing market will persist into 2026.
U.S. existing home sales tumbled to the lowest level in more than two years in January as falling inventory raised house prices, highlighting a housing market constrained by higher borrowing costs and tight inventory.
Same-store sales at Lowe's rose 1.3% in the fourth quarter, beating expectations, while adjusted profit of $1.98 per share surpassed estimates of $1.94.
(Reporting by Savyata Mishra in Bengaluru; Editing by Sriraj Kalluvila)
