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 progress in 2025, the home-improvement retail chain has lately expanded its offers and providers to win again clients. As these adjustments roll out, Lowe’s has observed a regarding shift in how clients are procuring 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 12 months earlier than, in accordance with its newest earnings report. Additionally, current Placer.ai information revealed that foot site visitors in Lowe’s shops in the course of the quarter spiked by 2% 12 months over 12 months.
The small raise in demand comes at a time when Lowe’s has been specializing in making the client expertise extra seamless, particularly for its Professional clients (residential and industrial commerce professionals).
In February, it expanded product entry and added digital instruments to its Professional Prolonged Aisle, a digital catalog that offers 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 providers for $99 a 12 months. 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 procuring
Throughout an earnings name on Might 20, Lowe’s Chief Monetary Officer Brandon Sink revealed that the typical amount of cash Lowe’s clients spent per buy in comparable retailer places in the course of the quarter elevated by 1.5% 12 months over 12 months.
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% on account of continued low DIY (do-it-yourself) discretionary purchases.
Sink mentioned clients are scaling again massive 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 partaking, nevertheless it continues to be within the restore, upkeep, replacement-related classes,” he mentioned. “… I might say this has been a pattern now for a number of years. The classes which are associated to big-ticket discretionary are these classes in merch divisions that form of proceed to lag.”
Lowe’s CEO Marvin Ellison mentioned in the course of 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 12 months lengthy, and that’s we’re working and what we might describe as a Ok-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 slightly bit extra cautious and slightly bit extra unsure primarily based on the entire macro elements that everyone knows so effectively,” mentioned Ellison.
Lowe’s clients are reducing again on purchases for big home-improvement tasks.Picture by Scott Olson on Getty Pictures
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 troublesome housing market that I’ve confronted on this enterprise for the reason that monetary disaster,” mentioned Ellison. “It is virtually completely or disproportionately on the DIY buyer. That is the vast majority of the place our income comes from.”
Housing turnover charges have fallen to historic lows since 2022, the identical 12 months the 30-year fixed-rate mortgage surpassed 6%. After seeing enchancment late final 12 months, mortgage charges have slowly climbed again up in current months.
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 12 months.
In a press launch, Lawrence Yun, Nationwide Affiliation of Realtors chief economist, mentioned the variety of days properties are staying available on the market is “lengthening on common, implying that buyers 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 client, and so they’re taking a look at all these values that we deliver to market,” mentioned William Boltz, govt vp of merchandising at Lowe’s, in the course of the earnings name.
“And so, after 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 middle for the client,” he continued.
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Lowe’s expects its comparable gross sales this 12 months to both stay stagnant or enhance by 2% 12 months over 12 months.
“We began this 12 months with a reasonably muted view that we might have principally flat progress total 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 reducing its fiscal 12 months 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 possible 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 price pressures are usually not abating.”
It is important for Lowe’s to concentrate on enhancing the client expertise with worth this 12 months, because it battles financial headwinds. A current JD Energy survey discovered that the corporate lags behind its prime 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.
Residence Depot takes second place with a satisfaction ranking of 679.
Ace {Hardware} falls proper behind Residence Depot with a 673 rating.
Lowe’s shopper satisfaction rating hit 659, falling beneath the phase common. Supply: JD Energy
“Though there have been significant beneficial properties in most operational areas, customers 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 influence on belief within the retailer, as each dimensions noticed a satisfaction lower this 12 months.”
“Even with the current emphasis on expertise and supply, dwelling enchancment customers nonetheless need in‑retailer recommendation, and retailers that put money into educated, service-oriented workers shall be greatest positioned to rebuild belief and drive long-term loyalty,” he continued.
