Over the previous few years, the sluggish U.S. housing market has weighed closely on dwelling enchancment retail, and Lowe’s hasn’t been immune.
After weak gross sales development in 2025, the home-improvement retail chain has not too long ago expanded its offers and companies to win again clients. As these modifications roll out, Lowe’s has seen a regarding shift in how clients are purchasing in its shops.
Within the first quarter of 2026, Lowe’s noticed its comparable gross sales enhance by 0.6%, in comparison with the identical quarter the yr earlier than, in accordance with its newest earnings report. Additionally, current Placer.ai knowledge revealed that foot site visitors in Lowe’s shops through the quarter spiked by 2% yr over yr.
The small raise in demand comes at a time when Lowe’s has been specializing in making the shopper expertise extra seamless, particularly for its Professional clients (residential and business commerce professionals).
In February, it expanded product entry and added digital instruments to its Professional Prolonged Aisle, a digital catalog that provides Professional clients entry to real-time stock and pricing.
The next month, Lowe’s launched a HomeCare+ subscription for MyLowe’s Rewards members, providing seven important dwelling upkeep companies for $99 a yr. Moreover, it started providing free same-day supply to MyLowe’s Rewards members who make on-line purchases of $25 or extra.
Lowe’s sees a shift in how clients are purchasing
Throughout an earnings name on Might 20, Lowe’s Chief Monetary Officer Brandon Sink revealed that the typical sum of money Lowe’s clients spent per buy in comparable retailer places through the quarter elevated by 1.5% yr over yr.
This was primarily pushed by “modest value inflation” and a lift in equipment gross sales.
Nonetheless, the variety of transactions clients made at these places declined by 0.9% attributable to continued low DIY (do-it-yourself) discretionary purchases.
Sink mentioned clients are scaling again giant discretionary purchases within the DIY class and are as a substitute specializing in tackling smaller dwelling enchancment tasks.
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“DIY (is) nonetheless very a lot participating, but it surely continues to be within the restore, upkeep, replacement-related classes,” he mentioned. “… I’d say this has been a development now for a number of years. The classes which are associated to big-ticket discretionary are these classes in merch divisions that kind of proceed to lag.”
Lowe’s CEO Marvin Ellison mentioned through the name that the corporate is noticing a shift in how higher-income clients store in comparison with lower-income clients as financial pressures mount.
“What we have seen to date is what we have seen all yr lengthy, and that’s we’re working and what we might describe as a Okay-shape financial system the place the higher-income shopper spends and so they’re spending on innovation, and so they’re spending on issues to modernize their dwelling, and the lower-income shopper is just a little bit extra cautious and just a little bit extra unsure based mostly on all the macro components that everyone knows so effectively,” mentioned Ellison.
Lowe’s clients are slicing again on purchases for giant home-improvement tasks.Picture by Scott Olson on Getty Photos
Lowe’s CEO reveals why clients are shifting gears
He additionally flagged that challenges within the U.S. housing market are negatively affecting DIY clients.
“This has been essentially the most tough housing market that I’ve confronted on this enterprise for the reason that monetary disaster,” mentioned Ellison. “It is nearly solely or disproportionately on the DIY buyer. That is nearly all of the place our income comes from.”
Housing turnover charges have fallen to historic lows since 2022, the identical yr the 30-year fixed-rate mortgage surpassed 6%. After seeing enchancment late final yr, mortgage charges have slowly climbed again up in current months.
In line with knowledge from the Nationwide Affiliation of Realtors, the typical 30-year fixed-rate mortgage reached 6.33% in April, up from 6.18% in March and 6.05% in February.
Amid this spike, existing-home gross sales in April elevated 0.2% month over month, however had been flat in comparison with the time interval final yr.
In a press launch, Lawrence Yun, Nationwide Affiliation of Realtors chief economist, mentioned the variety of days houses are staying available on the market is “lengthening on common, implying that customers are taking their time earlier than making choices.”
Lowe’s leans on worth to raise buyer demand
As uncertainty within the housing market persists, Lowe’s plans to double down on worth to maintain clients engaged.
“We proceed to hearken to the shopper, and so they’re taking a look at all these values that we convey to market,” mentioned William Boltz, govt vice chairman of merchandising at Lowe’s, through the earnings name.
“And so, once we take into consideration Q2 (the second quarter of 2026), what’s up in entrance of us coming into this weekend with Memorial weekend, clearly, is proceed to maintain these values entrance and heart for the shopper,” he continued.
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Lowe’s expects its comparable gross sales this yr to both stay stagnant or enhance by 2% yr over yr.
“We began this yr with a reasonably muted view that we might have principally flat development general within the dwelling enchancment sector,” mentioned Ellison. “And we principally set our steering to take share and outperform the market.”
In an analyst observe obtained by TheStreet, Financial institution of America analysis analyst Christopher Nardone wrote that his establishment is decreasing its fiscal yr 2026 earnings-per-share (EPS) estimates for Lowe’s by $0.10 to $12.33 to mirror a “weaker” second-quarter gross sales/margin forecast.
“Given the incremental demand and price pressures, we expect the decrease finish of mgmt’s EPS steering is extra seemingly absent an enchancment in underlying housing fundamentals,” wrote Nardone within the observe. “Mgmt is leaning into gross sales driving initiatives like promos and advertising and marketing to assist bolster demand in a weak DIY market whereas value pressures usually are not abating.”
It’s vital for Lowe’s to give attention to enhancing the shopper expertise with worth this yr, because it battles financial headwinds. A current JD Energy survey discovered that the corporate lags behind its high rivals within the dwelling enchancment retail market when it comes to shopper satisfaction.
The common shopper satisfaction rating for the U.S. dwelling enchancment retailers is 672 (on a 1,000-point scale), up 1 level from the identical survey in 2025.
Menards has the best shopper satisfaction rating, 690.
House Depot takes second place with a satisfaction ranking of 679.
Ace {Hardware} falls proper behind House Depot with a 673 rating.
Lowe’s shopper satisfaction rating hit 659, falling under the section common. Supply: JD Energy
“Though there have been significant positive aspects in most operational areas, consumers can not ignore the rising costs,” mentioned Michael Taylor, a senior managing director at JD Energy, in a press launch. “This sensitivity to worth for value paid has a direct affect on belief within the retailer, as each dimensions noticed a satisfaction lower this yr.”
“Even with the current emphasis on expertise and supply, dwelling enchancment consumers nonetheless need in‑retailer recommendation, and retailers that put money into educated, service-oriented workers might be greatest positioned to rebuild belief and drive long-term loyalty,” he continued.
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This story was initially revealed by TheStreet on Might 24, 2026, the place it first appeared within the Retail part. Add TheStreet as a Most popular Supply by clicking right here.
