Lowe's Companies, Inc. (LOW.US) performance outlook highlights weak demand, the recovery of the American housing market is still far away.

The latest performance data released by Lowe's Companies, Inc. (LOW.US), a large retailer of home improvement and home decor products in the United States, shows that the company's full-year sales guidance is lower than the unanimous expectations of Wall Street analysts. This indicates that due to high borrowing costs in the United States, fluctuations in the labor market and economic growth trajectory, the American housing market will remain sluggish in the short term. The company's management stated that they expect comparable store sales to remain flat compared to the same period last year, or at most increase by only 2%. The midpoint of this range is lower than the average expectations of Wall Street analysts for this period. Lowe's Companies, Inc. reported fourth quarter comparable store sales and adjusted earnings per share exceeding Wall Street expectations as of January 30. The fourth quarter performance as of January 30, 2026, showed that Lowe's Companies, Inc. had total sales of approximately $20.584 billion, an increase of about 11.0% year-on-year; operating profit was approximately $1.708 billion, a decrease of 6.7% year-on-year; and the adjusted earnings per share were $1.98, compared to $1.93 in the same period last year. Over the past three years, with interest rates still high and concerns about inflation lingering across the United States, American consumers have been delaying moving or postponing home decor upgrade plans. The latest performance of Lowe's Companies, Inc. indicates that the American housing market has not yet rebounded, and households are delaying significant expenditures. The company stated on Wednesday that the housing market is still under pressure, and it is focusing on improving productivity and reducing operating costs among other controllable factors. The stock fell about 3% in pre-market trading in New York. The stock has risen about 16% so far this year, significantly outperforming the S&P 500 index. The American housing chain is still in a low-active state caused by "high interest rates + macroeconomic policy uncertainty." For Lowe's Companies, Inc. and other operators centered around housing, there have been some early signs of recovery, but overall, they remain in a dark moment in the real estate market, with these companies reporting weak sales in recent years. Mortgage rates in the United States have been falling in recent months, and median home prices have remained relatively stable, factors that could potentially reactivate the housing market, but there has not been any significant growth change in demand. American consumers are still concerned about inflation, unemployment, and other macroeconomic factors. They are spending money on necessities and new goods they deem valuable, but are delaying large, discretionary projects. While American homeowners remain a relatively healthy consumer group, many American consumers are significantly postponing home improvement projects and hoping to move when interest rates drop in the coming years. However, people have not changed their purchasing philosophies or long-term buying philosophies. The company's competitor, Home Depot, Inc., said on Tuesday that, except for a few product categories (such as appliances and countertops), customers have not universally "downgraded" in their spending. The company expects comparable store sales to increase by at most 2% this year. As investors seek clues about consumer health and observe how the latest trade policies will affect businesses, Lowe's Companies, Inc. has become one of the latest large retailers to announce quarterly results. The Supreme Court overturned a wide-ranging global tariff measure by U.S. President Donald Trump last week, and he subsequently pledged to introduce new tariffs. During a period of continued slowing growth in performance, home improvement retailers have been trying to expand customized renovation/decoration products and services for professional contractors, as contractor spending far exceeds that of DIY customers. In addition, the growth rate of sales brought by the e-commerce market has been one of the bright spots in this industry. The comparable store sales guidance provided by Lowe's Companies, Inc. management only indicates an expected flat to +2% growth, emphasizing that "the housing market is still under pressure, DIY demand is weak, highlighting that residents are continuing to postpone moving and major renovations, and even though the quarterly data is still acceptable for home improvement retailers, the management's grasp of a "strong demand recovery" is still insufficient. Macro and real estate data also support the judgment of "cool trading, slow recovery in demand": NAR shows that existing home sales (annualized) in January 2026 fell to 3.91 million units, a month-on-month decline of -8.4% and a year-on-year decline of -4.4%; pending home sales in the United States in January also fell by 0.8% month-on-month and 0.4% year-on-year, indicating that there is no clear turning point in the transaction chain yet. At the same time, according to Freddie Mac, the 30-year fixed mortgage rate was around 6.01% in mid-February, down from about 6.85% a year ago, but still in a range that suppresses the willingness to buy homes and refinance - lowering rates bring "green shoots", but not enough to immediately reverse demand.