Lowe’s shares closed slightly higher (+0.8%) following Q2 results that showed modest comparable sales growth and ongoing margin pressure amid a challenging macro environment. The market’s muted response suggests investors remain cautious given weak DIY discretionary spend and persistent cost headwinds despite solid online and Pro segment execution.
- Revenue reached $26 billion with comparable sales up just 0.2%, reflecting softness in DIY discretionary categories.
- Online sales grew 15.7%, driven by digital investments and strong adoption of the AI assistant Mylow, which triples conversion rates among users.
- The Pro segment maintained growth supported by differentiated assortment and inventory strength, partially offsetting weaker consumer demand.
- Home Services continued to advance, benefiting from simplified experiences and strong engagement in replacement projects.
- Elevated fuel, transportation, and energy costs pressured margins, although expense management efforts helped absorb some input cost inflation.
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