Lowe's follows rival Home Depot with dismal profit forecast: ‘People aren't moving'

Core Insights - Lowe's has reduced its annual profit and sales forecasts, reflecting concerns similar to those expressed by Home Depot regarding the low likelihood of a recovery in home improvement demand this year [1] - The Federal Reserve's high interest rates, due to insufficient evidence of easing inflation, are negatively impacting home sales and demand for renovation projects [1] - Lowe's anticipates a 3.5% to 4% decline in comparable sales for the full year and adjusted earnings per share of approximately $11.70 to $11.90, down from a previous forecast of $12.00 to $12.30 [1] Sales Performance - Home Depot also projected a decline in annual profit and a larger drop in annual comparable sales [2] - Unseasonably warm weather has negatively affected sales during the typically strong spring season, leading consumers to delay expensive lawn and garden projects [2] - Lowe's experienced a 5.1% drop in second-quarter comparable sales, which was worse than analysts' expectations of a 4.11% decline [2] Market Strategy - Both Lowe's and Home Depot are focusing on engaging more professional contractors and property managers due to weak demand from individual customers for services like plumbing and roofing [4] - Lowe's has managed gross margin and cost control better than anticipated, although lower sales in the second half of the year may pose challenges [4]