Lowe’s Companies’ $92 Billion Outlook — Is The Housing Drag Already Priced In?

Lowe’s Companies reported second quarter fiscal 2026 sales of $26 billion, an 8.3% increase year-over-year, with comparable sales rising 0.2%. The company noted modest price inflation contributing to a 2.3% rise in average ticket size, although comparable transactions declined 2.1%, pressured by reduced demand in weather-sensitive seasonal and outdoor categories. Sales growth was supported by strong performances in Pro customer segments, online channels—which grew 15.7%—and Home Services, partially offsetting softness in the Do-It-Yourself (DIY) discretionary segment amid macroeconomic challenges including elevated fuel prices and heightened economic uncertainty. Gross margin contracted 80 basis points to 33%, influenced by the dilutive impact of recent acquisitions (Foundation Building Materials and Artisan Design Group) and elevated input costs, though tariff refunds provided a 30 basis point offset. Selling, General & Administrative (SG&A) expenses were well-managed, leveraging 14 basis points to 17.2% of sales. Adjusted operating margin declined 62 basis points to 14%.