Story perspectives

Lowe’s Cuts 2026 Outlook, Forecasts Flat Comparable Sales

8/19/2026

Summary

Lowe’s Cuts Outlook

Lowe’s cut its 2026 full-year outlook on August 19, forecasting $92 billion in sales and flat comparable sales, the low end of its prior $92-$94 billion range.
Q2 total sales reached $25.96 billion, up 8.3% YoY, with comparable sales up 0.2% for a fifth straight quarter.
Adjusted EPS was $4.40, beating the $4.22 estimate thanks to $80 million in tariff refunds.
Shares rose about 4% in morning trading after the results.

Summary

Lowe’s Discounted Valuation

Lowe’s forward 12-month P/E is 16.64, below the industry average of 19.63, indicating a discounted valuation.
Over the past three months the stock fell 0.6% while Home Depot rose 12.1% and Floor & Decor rose 28%.
Zacks gives Lowe’s a Rank #4 (Sell) and an Earnings ESP of –0.91%, signaling low odds of an earnings beat.

History

Historical Context

During the 2009 Great Recession, U.S. home-improvement retailers such as Lowe’s Companies and Home Depot saw sales contract by roughly 5 % amid tightened consumer credit. The Federal Reserve cut the funds rate to 0 % in December 2008, the U.S. Treasury allocated $300 billion stimulus, and Walmart reported a 3 % sales dip. Today, Lowe’s 2026 outlook cut to $92 billion sales and EPS beat mirrors post-crisis profit pressures, while Home Depot outperforms and sector P/E ratios stay low. The parallel suggests that cyclical downturns still dictate valuation gaps, prompting investors to monitor credit conditions and potential stimulus as determinants of future earnings.

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Lowe’s Cuts Outlook

Lowe’s cut its 2026 full-year outlook on August 19, forecasting $92 billion in sales and flat comparable sales, the low end of its prior $92-$94 billion range.
Q2 total sales reached $25.96 billion, up 8.3% YoY, with comparable sales up 0.2% for a fifth straight quarter.
Adjusted EPS was $4.40, beating the $4.22 estimate thanks to $80 million in tariff refunds.
Shares rose about 4% in morning trading after the results.

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