Lowe’s quietly edges past Home Depot in battle for shoppers

Core Viewpoint - Lowe's has outperformed Home Depot in the competition for consumer spending in the home improvement sector, but the CEO expresses caution due to changing consumer behavior and potential threats to future sales [1][6]. Group 1: Sales Performance - In Q4 2025, Lowe's reported a 1.3% year-over-year increase in comparable sales, while Home Depot's U.S. comparable sales rose only 0.3% [1][2]. - Lowe's operating income decreased by approximately 6.6%, contrasting with Home Depot's 14.4% decline in operating income [1][2]. Group 2: Strategic Acquisitions - Lowe's completed the acquisition of Foundation Building Materials for $8.8 billion, enhancing its distribution capabilities in interior building products [3]. - The retailer also acquired Artisan Design Group for $1.3 billion, focusing on expanding product offerings for Pro customers [2]. Group 3: Consumer Behavior and Market Trends - Lowe's experienced a decline in foot traffic, with same-store visits dropping 2.2% in October, increasing by 2.9% in November, and falling 1.5% in December [4]. - Home Depot's foot traffic showed a smaller decline, with a 1.5% drop in October, a 3% increase in November, and a 0.5% dip in December [4]. Group 4: Economic Factors - The CEO noted persistent volatility in the housing market, which affects consumer confidence and spending on big-ticket home improvement projects [6][10]. - Despite a decrease in mortgage rates, existing-home sales fell by 4.4% year-over-year in January, while the median existing-home sales price rose by 0.9% to $396,800 [8][9]. Group 5: Future Outlook - For the full year of 2026, Lowe's anticipates comparable sales growth to be flat or up to 2% compared to the previous year [11]. - The company expects improvement in the housing and home improvement markets to be gradual due to ongoing economic uncertainties [11]. Group 6: Investment in Technology - Lowe's is increasing its investment in artificial intelligence, launching tools like Mylow Companion to enhance customer service and improve sales associate efficiency [13]. - The company aims to leverage AI to optimize sales processes, improve the shopping experience, and enhance productivity in stores [13].