Lowe’s full-year outlook is showing unexpected strength even though the U.S. housing market remains under pressure. With better-than-expected second-quarter results and a major acquisition announcement, the home improvement retailer is finding ways to push ahead despite a slowdown in DIY activity and weaker consumer sentiment.
Lowe’s recently posted its second-quarter earnings, and the results surprised many on Wall Street. Revenue rose to about 23.96 billion dollars, slightly higher than last year’s 23.59 billion and ahead of analyst expectations. Comparable sales also improved by 1.1 percent, signaling that both professional and DIY customers are still spending despite housing headwinds.
Net income reached 2.4 billion dollars, translating to adjusted earnings of about 4.27 to 4.33 dollars per share. These numbers exceeded forecasts and gave investors more confidence in Lowe’s ability to manage through a tough retail environment.
Encouraged by these results, Lowe’s lifted its full-year sales forecast. The company now expects revenue in the range of 84.5 to 85.5 billion dollars, compared with an earlier forecast of 83.5 to 84.5 billion.
For earnings per share, Lowe’s has adjusted its guidance slightly upward, now projecting 12.20 to 12.45 dollars. While it also issued a conservative official EPS range of 12.10 to 12.35 dollars, the overall signal is clear: management sees steady demand ahead, particularly in areas where Lowe’s has been investing heavily, such as professional contractor services.
The improved Lowe’s full-year outlook comes at a time when the housing market continues to face difficulties. Rising mortgage rates, higher borrowing costs, and fewer home sales have cooled consumer appetite for remodeling projects.
DIY demand has been particularly soft, with fewer homeowners taking on big projects. Foot traffic at Lowe’s stores fell nearly 4 percent year over year in the second quarter. Rival Home Depot saw a smaller decline of about 2.6 percent, highlighting the pressure across the entire sector.
Still, Lowe’s has managed to offset some of this weakness by strengthening its offerings for professional customers, who tend to buy larger volumes and provide more predictable revenue.
The biggest news beyond earnings was Lowe’s announcement of an 8.8 billion dollar acquisition of Foundation Building Materials, a company that supplies drywall, insulation, ceilings, doors, and other building essentials. FBM serves about 40,000 professional customers through more than 370 locations across the United States and Canada.
The deal, expected to close later in 2025, will be financed with a mix of short- and long-term debt, supported by a 9 billion dollar bridge loan. For Lowe’s, this is not just an expansion of product lines but a direct move to strengthen its relationships with professional builders and contractors.
This acquisition is part of Lowe’s broader “Total Home” strategy, which aims to deepen its presence in every aspect of the home improvement and building process. The company has been working to become a stronger partner for professionals by offering faster deliveries, improved digital tools, and better financing options.
Buying Foundation Building Materials will accelerate that plan. It adds a massive distribution network, expands product categories, and opens up new cross-selling opportunities. Lowe’s believes this will give it a competitive edge not only against Home Depot but also against specialty suppliers in the Pro segment.
The move also follows another acquisition earlier this year, when Lowe’s spent 1.3 billion dollars to buy Artisan Design Group, a flooring installation business. Together, these deals demonstrate a clear shift in Lowe’s strategy: focusing less on one-time DIY purchases and more on long-term professional relationships.
The rivalry between Lowe’s and Home Depot has long shaped the home improvement retail sector. Both are increasingly targeting professional customers, who account for a significant portion of industry sales.
Home Depot recently acquired GMS, a drywall distributor, for about 4.3 billion dollars. Lowe’s new purchase of Foundation Building Materials is nearly twice that size, signaling its determination to compete aggressively in the Pro segment. By doing so, Lowe’s is attempting to level the playing field with Home Depot, which has historically had a stronger foothold among professional contractors.
Investors welcomed the earnings report and acquisition news. Shares of Lowe’s rose between 2.7 and 3 percent in premarket trading after the announcements. Analysts generally remain optimistic, with average price targets suggesting modest upside from current trading levels.
While the market reaction has been positive, analysts caution that risks remain. Tariffs on imported materials could raise costs, and the fragile state of the housing market may continue to limit DIY sales. Nonetheless, the raised outlook and acquisition show that Lowe’s management is confident about long-term growth opportunities.
Despite the improved outlook, Lowe’s faces several challenges. The ongoing slowdown in housing starts and sales could weigh on renovation demand. Inflation remains a concern for many households, which could limit discretionary spending on big projects.
Another risk comes from tariffs and trade policy changes, which may increase the cost of raw materials such as lumber, steel, and appliances. While Lowe’s has been able to pass some of these costs onto customers, higher prices may eventually dampen demand.
Finally, integration risks from the Foundation Building Materials acquisition should not be ignored. Bringing in such a large company requires careful execution to avoid disruptions while delivering promised synergies.
Lowe’s full-year outlook shows that even in a sluggish housing market, there are ways to drive growth. By focusing on professionals, expanding its supply chain, and making bold acquisitions, Lowe’s is betting on a more stable and profitable customer base.
This approach could help Lowe’s weather short-term economic challenges while positioning itself for stronger growth when the housing market eventually rebounds.
Lowe’s full-year outlook is brighter than many expected. Stronger second-quarter results, a raised sales forecast, and the acquisition of Foundation Building Materials show that the company is not waiting for the housing market to recover—it is actively reshaping its future.
While challenges like tariffs, inflation, and weak consumer demand remain, Lowe’s strategy of targeting professional customers could prove to be the key difference-maker in the years ahead. Investors and industry watchers will be paying close attention as the company integrates its new acquisition and pushes further into the professional market.
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