Lowe’s earnings reaffirm ‘cautious’ consumer trend

Lowe’s on Wednesday released its second-quarter earnings report, indicating that consumers are prioritizing household repairs over replacements, echoing rival Home Depot’s assessment on Tuesday. 

What’s happening: During the quarter, Lowe’s same-store customer transactions fell 2.1 percent year-over-year, and its average ticket rose 2.3 percent — reflecting inflation. Lowe’s executives said the trend was driven by homeowners navigating an uncertain economy. 

• “Customers continue to tell us that they’re being cautious about their spending and prioritizing where and when they invest in their homes,” Lowe’s CEO Marvin Ellison said on the company’s earnings call on Wednesday. 

What they’re saying: “Affordability remains the major concern… That’s really translating to [the] prioritization of repair [and] maintenance spend… and this ongoing trend of caution around big-ticket discretionary [projects],” said Brandon Sink, Lowe’s CFO. 

• “That played out in the first half, and our outlook essentially reflects more of the same, and that’s going to play out in the second half,” he added.

Zoom out: Over 70 percent of homeowners have been focused on preventative maintenance to avoid costlier issues later, according to Angi’s 2025 State of Home Spending report. 

Yes, but: Executives cited steady revenue from the company’s Pro customers — contractors who partner with Lowe’s — amid what they described as a “K-shaped economy.”

• “In our recent survey, our core Pro customers shared that their backlogs are steady,” said Joe McFarland, Lowe’s Executive Vice President. 
• “However, they are seeing a homeowner that is more cautious about their spending,” he added. “This is leading to consistently smaller projects focused on repair and maintenance needs.”

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