Lowe's reported solid Q2 results with positive comps, strong online and pro growth, but guided down to the low end of its full-year outlook due to a cautious consumer, persistent DIY softness, and elevated input costs. Management highlighted competitive pricing pressure in July from rivals using tariff refunds. Q2 comp sales +0.2% with strong online (+15.7%), pro, and home services growth offsetting weak DIY demand.
Lowe's reported solid Q2 results with positive comps, strong online and pro growth, but guided down to the low end of its full-year outlook due to a cautious consumer, persistent DIY softness, and elevated input costs. Management highlighted competitive pricing pressure in July from rivals using tariff refunds. Q2 comp sales +0.2% with strong online (+15.7%), pro, and home services growth offsetting weak DIY demand.
Management discussed the positive impact of AI on their digital experience, specifically the online agent Milo and the internal Associate AI Companion, which have supported over 25 million questions. They noted that customers who use Milo convert at triple the rate of those who…
Q2 comp sales +0.2% with strong online (+15.7%), pro, and home services growth offsetting weak DIY demand.
Guidance · revenue to $92B
Management cited heightened competitive pricing in July from rivals using tariff refunds, which Lowe's chose not to match.
Management discussed the positive impact of AI on their digital experience, specifically the online agent Milo and the internal Associate AI Companion, which have supported over 25 million questions. They noted that customers who use Milo convert at triple the rate of those who do not, positioning AI as a clear driver in purchasing decisions.
Management described a cautious consumer, with DIY discretionary demand under pressure due to macro uncertainty and elevated fuel prices. Pro and home services showed continued strength, but homeowners are prioritizing smaller repair and maintenance projects over larger remodeling jobs, reflecting a steady but cautious demand environment.
Lowe's maintained its full-year capital expenditure guidance of up to $2.5 billion, reflecting continued investment in key total home strategy initiatives. The company also committed to investing in growth platforms like FBM and ADG despite near-term pressures.
Management acknowledged persistent macro headwinds and soft DIY demand but highlighted operational discipline, strategic investments, and confidence in long-term positioning, balancing caution with reassurance.
“We observed some heightened competitive pressures, primarily in July. We had competitors being aggressive on price, primarily seasonal categories.”
“As Bill talked about that K-shaped economy, online is a great place to really look at that happen in real time because we see premium customers and value-oriented customers shopping.”
“We're also pleased to welcome Traeger to our already strong grilling lineup.”
“The impact of our perpetual productivity improvement effort is evident in our successful transition of all store and field associates to a new centralized communications portal.”
“We are now projecting that across the second half of the year, and we're actually expecting it to be a bit more elevated as we start to turn through new cost layers that built up through the first half of the year.”
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Capex | FY2026 | $2.5B | $2.5B | GUIDED |
| EPS | FY2026 | $12.25 | $12.25 | LOWERED |
| Op margin | FY2026 | 11.6% | 11.6% | LOWERED |
| Revenue | FY2026 | $92B | $92B | LOWERED |
| Issued | Metric | Target | Guide | Actual | Outcome |
|---|---|---|---|---|---|
| FY2026 Q1 | EPS | FY2026 Q2 | $3.00 | $4.40 | Met / beat |
| FY2025 Q3 | EPS | FY2025 | $12.25 | $12.28 | Met / beat |
| FY2025 Q3 | Revenue | FY2025 | $86B | $86.3B | Met / beat |
Lowe's is partnering with Instacart to enable grocery delivery synced with new smart appliances.
“This refrigerator can scan everyday grocery items and automatically add them to a shared digital shopping list that then can be synced to Instacart for quick delivery.”
… for both planned purchases and urgent replacement needs through a best-in-class omni-channel experience, fast, reliable fulfillment, and the broadest assortment of leading brands including LG, GE, Bosch, and Whirlpool. We're also bringing consumers the latest innovations to make life easier, like the new GE Profile refrigerator with kitchen assistant that features the first-of-its-kind built-in barcode scanning technology. This refrigerator can scan everyday grocery items and automatically add them to a shared digital shopping list that then can be synced to Instacart for quick delivery. And because speed of appliance delivery is so important during a duress occasion, Lowe's can deliver and install the broadest selection of major appliances next day in virtually every U.S. zip code. This is truly the fastest fulfillment in home improvement. Beyond appliances, we saw demand for repair and refresh projects in kitchen and bath across categories like vanities, bathing, and toilets. And paint also remained a bright spot with growth in interior paint, sundries, and buckets. Now let's shift to hard lines. where we grew comp sales in lawn and garden and tools and hardware. Our …
Lowe's saw positive comps in rough plumbing, with A.O. Smith products driving sales in HVAC and water heaters.
“Within rough plumbing, we drove sales in HVAC, water heaters, and air circulation, supported by trusted brands like A.O. Smith and SharkBite, whose solutions make installation fast and simple.”
… of our 13 merchandise divisions, demonstrating continued strong execution, a commitment to value, and disciplined approach to managing through the current challenging environment. In building products, we generated broad-based growth with positive comps in rough plumbing, millwork, electrical and lumber. These results reflect our strategic investments in PRO and ongoing strength in repair and maintenance projects. Within rough plumbing, we drove sales in HVAC, water heaters, and air circulation, supported by trusted brands like A.O. Smith and SharkBite, whose solutions make installation fast and simple. We also delivered positive comps in lumber, specifically in treated lumber, siding, and composite decking, with leading brands like Trex, TimberTech, and Decorators. In electrical, we delivered growth in electrical cable, landscape lighting, and fire safety. This quarter, we completed the rollout of Cree within our light bulb assortment, bringing this innovative brand exclusively to Lowe's in the home center channel. One standout product is Cree's new six-way bulb, which lets customers easily adjust the color temperature either on the bulb or from the wall switch. Turning to …
Lowe's saw positive comps in lumber, with Trex and TimberTech driving sales in composite decking.
… In building products, we generated broad-based growth with positive comps in rough plumbing, millwork, electrical and lumber. These results reflect our strategic investments in PRO and ongoing strength in repair and maintenance projects. Within rough plumbing, we drove sales in HVAC, water heaters, and air circulation, supported by trusted brands like A.O. Smith and SharkBite, whose solutions make installation fast and simple. We also delivered positive comps in lumber, specifically in treated lumber, siding, and composite decking, with leading brands like Trex, TimberTech, and Decorators. In electrical, we delivered growth in electrical cable, landscape lighting, and fire safety. This quarter, we completed the rollout of Cree within our light bulb assortment, bringing this innovative brand exclusively to Lowe's in the home center channel. One standout product is Cree's new six-way bulb, which lets customers easily adjust the color temperature either on the bulb or from the wall switch. Turning to home decor, we delivered strong performance across our interior categories including positive comps in appliances, paint, and kitchen and bath. Starting with appliances, where we …
Lowe's completed its exclusive rollout of Cree light bulbs, which could drive market share gains for the supplier.
… we drove sales in HVAC, water heaters, and air circulation, supported by trusted brands like A.O. Smith and SharkBite, whose solutions make installation fast and simple. We also delivered positive comps in lumber, specifically in treated lumber, siding, and composite decking, with leading brands like Trex, TimberTech, and Decorators. In electrical, we delivered growth in electrical cable, landscape lighting, and fire safety. This quarter, we completed the rollout of Cree within our light bulb assortment, bringing this innovative brand exclusively to Lowe's in the home center channel. One standout product is Cree's new six-way bulb, which lets customers easily adjust the color temperature either on the bulb or from the wall switch. Turning to home decor, we delivered strong performance across our interior categories including positive comps in appliances, paint, and kitchen and bath. Starting with appliances, where we delivered our seventh consecutive quarter of positive comp sales growth as we continue to reinforce our leadership position as the destination for both planned purchases and urgent replacement needs through a best-in-class omni-channel experience, fast, …
Lowe's is expanding into premium appliances with brands like Cafe, presenting a growth opportunity for those suppliers.
… kitchen and bath. Starting with appliances, where we delivered our seventh consecutive quarter of positive comp sales growth as we continue to reinforce our leadership position as the destination for both planned purchases and urgent replacement needs through a best-in-class omni-channel experience, fast, reliable fulfillment, and the broadest assortment of leading brands including LG, GE, Bosch, and Whirlpool. We're also bringing consumers the latest innovations to make life easier, like the new GE Profile refrigerator with kitchen assistant that features the first-of-its-kind built-in barcode scanning technology. This refrigerator can scan everyday grocery items and automatically add them to a shared digital shopping list that then can be synced to Instacart for quick delivery. And because speed of appliance delivery is so important during a duress occasion, Lowe's can deliver and install the broadest selection of major appliances next day in virtually every U.S. zip code. This is truly the fastest fulfillment in home improvement. Beyond appliances, we saw demand for repair and refresh projects in kitchen and bath across categories like vanities, bathing, and toilets. And …
Lowe's is adding new Bosch 4-volt products, indicating continued partnership and innovation with the supplier.
Lowe's continued to see strong demand for appliances, with Whirlpool among the key brands driving performance.
… bulb assortment, bringing this innovative brand exclusively to Lowe's in the home center channel. One standout product is Cree's new six-way bulb, which lets customers easily adjust the color temperature either on the bulb or from the wall switch. Turning to home decor, we delivered strong performance across our interior categories including positive comps in appliances, paint, and kitchen and bath. Starting with appliances, where we delivered our seventh consecutive quarter of positive comp sales growth as we continue to reinforce our leadership position as the destination for both planned purchases and urgent replacement needs through a best-in-class omni-channel experience, fast, reliable fulfillment, and the broadest assortment of leading brands including LG, GE, Bosch, and Whirlpool. We're also bringing consumers the latest innovations to make life easier, like the new GE Profile refrigerator with kitchen assistant that features the first-of-its-kind built-in barcode scanning technology. This refrigerator can scan everyday grocery items and automatically add them to a shared digital shopping list that then can be synced to Instacart for quick delivery. And because speed of …
Lowe's saw strong demand in outdoor power equipment, with John Deere as a key differentiating brand.
… categories like vanities, bathing, and toilets. And paint also remained a bright spot with growth in interior paint, sundries, and buckets. Now let's shift to hard lines. where we grew comp sales in lawn and garden and tools and hardware. Our spring seasonal categories performed well throughout the first half of the year as customers responded to compelling value in live goods, hardscapes, and landscape products. And our attractive credit offers helped support demand in outdoor power equipment as our broad assortment and key brands like John Deere, Toro, Ahrens, and Ego remained key points of differentiation. Tools and hardware also performed well particularly in metal storage and fastening where we have one of the strongest brand lineups in home improvement offering customers both trusted national brands and our own private brands. Craftsman continued to deliver value and innovation with products made in the USA including a limited edition workbench with a magnetic flag designed to celebrate America's 250th birthday. And customers responded to Cobalt's wide range of colors in metal storage helping them personalize their workspace. Looking ahead, while discretionary DIY …
Lowe's is expanding into premium appliances with brands like KitchenAid, presenting a growth opportunity for those suppliers.
… our attractive credit offers helped support demand in outdoor power equipment as our broad assortment and key brands like John Deere, Toro, Ahrens, and Ego remained key points of differentiation. Tools and hardware also performed well particularly in metal storage and fastening where we have one of the strongest brand lineups in home improvement offering customers both trusted national brands and our own private brands. Craftsman continued to deliver value and innovation with products made in the USA including a limited edition workbench with a magnetic flag designed to celebrate America's 250th birthday. And customers responded to Cobalt's wide range of colors in metal storage helping them personalize their workspace. Looking ahead, while discretionary DIY spending remains under pressure and the K-shaped economy continues to shape consumer spending, we're encouraged by the plans that we have in place to drive demand for both our price-conscious and premium customers in the second half of the year. For example, we're expanding our assortment of premium appliances on Lowes.com, giving customers more choices across a wider range of price points and allowing us to unlock additional …
Lowe's is rolling out Traeger grills, which could support Traeger's revenue growth and market penetration through a major national retailer. — Traeger's channel expansion into Lowe's stores is a potential positive catalyst for the company's sales growth.
… Cobalt, we are adding new 4-volt lifestyle products that help our DIY customers complete household tasks more efficiently. To help customers with landscape projects this fall, we're leaning into our outdoor strength by offering compelling values and a great assortment to support lawn restoration, fall planning, and seasonal cleanup projects, particularly in markets affected by droughts this summer. We're also pleased to welcome Traeger to our already strong grilling lineup. As one of the leading brands in outdoor grilling, Traeger will begin rolling out in select stores and online nationwide later this year, further strengthening our assortment of grills, pellets, and accessories and giving our customers even more reasons to choose Lowe's for their outdoor projects. And as those customers engage with Lowe's, we'll continue to build on the momentum from our My Lowe's Rewards Loyalty Program. We have more than 30 million members who shop more frequently and spend more per visit than non-members. We'll continue to reward that loyalty with exclusive member offers, special events and enhanced same-day fulfillment options, making it even more valuable to choose Lowe's. Before I wrap …
Lowe's saw competitive pricing pressures in July as competitors used tariff refunds to aggressively price seasonal categories, leading Lowe's to refrain from matching promotions to protect margins. — Indicates Home Depot likely used its tariff refunds to drive sales and market share, potentially impacting future pricing dynamics in the home improvement sector.
Marvin, you mentioned competitive pressures to end the quarter. And so I was hoping maybe if you could just expand on that comment given the July monthly comp. Are there specific regions, categories, channels where those pressures are emerging? And then maybe just provide a little more color on how you've incorporated maybe reactive or proactive plans to combat those pressures into the back half of the year.
Yes, Steve, thanks for the question. As I said in the prepared comments, We observed some heightened competitive pressures, primarily in July. We had competitors being aggressive on price, primarily seasonal categories. So think about grills, patio, and live goods that probably drove unit and sales performance for them, but obviously was not very profitable. So if you look at our July results, you can see that as an impact. Having said that, our goal is to be Very transparent on what we're seeing in the competitive marketplace, but also to be very clear on the initiatives we're working on and how we're trying to drive the business, not only in the second quarter, but in the second half of the year. So let me hand it over to Bill to just outline some of the things that we're doing to stay really focused on providing value, innovation, and leveraging the differentiation we have with our loyalty platform and some of the other initiatives to serve customers.