Lowe's cuts sales forecast to $92 billion amid home improvement pressures
Key Facts
Lowe's cut its fiscal 2026 sales forecast to $92 billion, according to second-quarter results released on August 19, 2026, as macroeconomic pressures continued to weigh on its do-it-yourself home improvement business. The company had forecast annual sales of between $92 billion and $94 billion before revising its outlook to the bottom of that range. Second-quarter sales totaled $26 billion, compared with $24 billion in the same quarter a year earlier. Comparable sales grew 0.2% in the second quarter of fiscal 2026. The company attributed comparable sales growth to strength in sales to professional customers, home services and digital sales. It said in its earnings release that these businesses supported performance amid continued pressure on its do-it-yourself business.
The focus on professional customers follows Lowe's acquisition of Foundation Building Materials, a deal completed on October 9, 2025, according to the company's filing with the U.S. Securities and Exchange Commission. Cash consideration totaled $8.8 billion, subject to customary closing adjustments under the purchase agreement. To finance part of the consideration and acquisition-related fees and expenses, Lowe's drew down the full amount of a $2.0 billion unsecured loan facility. Marvin Ellison said when the deal closed that the acquisition aimed to strengthen service to large professional customers. Lowe's estimated the addressable market for this segment at about $250 billion, placing expanded services for these customers at the heart of the deal's objectives.
Foundation Building Materials' network comprised more than 370 locations in the United States and Canada when the acquisition's completion was announced. The company served 40000 professional customers when the purchase agreement was announced, according to Lowe's statement filed with the Securities and Exchange Commission. Its products include metal framing, ceiling systems, and commercial doors and hardware, according to the Associated Press. These products serve new construction, repair and renovation work in residential and commercial projects. Lowe's said the acquisition would support service to professionals through "faster fulfillment, enhanced digital tools and a robust trade credit platform." The deal's stated operational objectives thus covered order fulfillment and the tools customers use, alongside access to trade credit.
Financially, Foundation Building Materials generated revenue of approximately $6.5 billion in 2024 on a pro forma combined basis, according to the acquisition agreement announcement. Adjusted earnings before interest, taxes, depreciation and amortization totaled $635 million on the same basis. Lowe's presented these figures as part of the acquired company's financial background when announcing the agreement. From 2019 to 2024, its revenue grew at a compound annual rate of about 25%. Adjusted earnings before interest, taxes, depreciation and amortization grew at a compound annual rate of about 30% over the same period, according to the statement.
The deal was part of a broader expansion by Lowe's into services and products related to construction and finishing work. The company completed its purchase of Artisan Design Group on June 2, 2025, before completing the Foundation Building Materials acquisition. Cash consideration for that acquisition totaled $1.3 billion, and Artisan provides interior finish design, distribution and installation services, according to Lowe's first-quarter 2026 report. Amid competition for professional customers, Home Depot completed its acquisition of GMS through its SRS Distribution subsidiary in September 2025, at an enterprise value of approximately $5.5 billion, including net debt. Neil Saunders, managing director at GlobalData, described the competition to the Associated Press, saying "the professional segment is essentially the new battleground in home improvement." His assessment came as Lowe's and Home Depot expanded their services to this customer segment.
In early trading when the Foundation Building Materials acquisition agreement was announced in August 2025, Lowe's shares rose 2% to $261.70, according to Reuters. The gains coincided with the company raising its annual sales forecast and second-quarter earnings beating analysts' estimates. When the acquisition closed, Lowe's confirmed that the acquired company's founder, Ruben Mendoza, would continue to lead it alongside its senior management team. Lowe's lists its third-quarter 2026 earnings conference call on its investor events calendar for November 18, 2026. The company describes the date as tentative.