Aug 19 (Reuters) - Home-improvement retailer Lowe's said on Wednesday it now expects no growth in annual comparable sales, as consumers remained cautious on expensive renovation projects and discretionary spending.
The company, whose shares dropped 3.3% in premarket trading, earlier expected this year's comparable sales in a range of flat to up 2% from the previous year.
In contrast, larger rival Home Depot beat quarterly sales and profit estimates on Tuesday and stuck to its annual targets, betting
on demand for smaller repair and maintenance projects.
Higher mortgage rates and limited housing turnover have continued to weigh on demand for larger projects such as kitchen remodels, bathroom renovations and flooring-installations.
A slowdown in existing-home sales has reduced renovation activity tied to home purchases, an important demand driver for home-improvement retailers.
Lowe's forecast fiscal 2026 adjusted earnings per share of $12.25, at the lower end of its previous expected range of $12.25 to $12.75.
The company said its outlook now includes tariff refunds recognized in the quarter, but excludes any additional refunds that may be received in the second half of the year.
Lowe's has historically generated a large share of sales from do-it-yourself customers, leaving it more exposed when discretionary consumer spending softens.
Despite pressure in discretionary do-it-yourself spending, the company gained due to growth in its pro and home service segments, CEO Marvin R. Ellison said.
Second-quarter sales of $25.96 billion missed analysts' average estimate of $26.16 billion, according to data compiled by LSEG.
The company's same-store sales for the quarter ended July 31 increased by 0.2% — below analysts' estimates of 0.8% growth.
(Reporting by Angela Christy in Bengaluru; Editing by Joyjeet Das)
