Over the past few years, the sluggish US housing market has weighed heavily on home improvement sales, and Lowe’s has not been immune.
After weak sales growth in 2025, the chain of home improvement stores recently expanded its deals and services to benefit customers. As these changes began, Lowe’s noticed a change in the way customers shopped at its stores.
In the first quarter of 2026, Lowe’s saw its comparable sales increase by 0.6%, compared to the same quarter a year ago, according to its latest earnings report. Also, recent data from Placer.ai revealed that foot traffic at Lowe’s stores during the quarter was up 2% year-over-year.
The slight increase in demand comes at a time when Lowe’s is focusing on making the customer experience seamless, especially for its Pro customers (residential and commercial professionals).
In February, it expanded product reach and added digital tools to its Pro Extended Aisle, a digital catalog that gives Pro customers access to real-time inventory and pricing.
The following month, Lowe’s launched a HomeCare+ subscription for MyLowe’s Rewards members, offering seven essential home care services for $99 a year. Additionally, it began offering free same-day delivery to MyLowe’s Rewards members who shop online for $25 or more.
Lowe’s is seeing a change in the way customers shop
During an earnings call on May 20, Lowe’s Chief Financial Officer Brandon Sink revealed that the average amount of money Lowe’s customers spent per purchase at comparable store locations during the quarter increased 1.5% year over year.
This was largely fueled by “increasing low prices” and increased sales of electronics.
However, the number of transactions carried out by customers in these areas decreased by 0.9% due to continued low DIY (do-it-yourself) purchases.
Sink said customers are putting off big discretionary purchases in the DIY category and instead focusing on tackling smaller home improvement projects.
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“DIY is (still) very active, but it continues to be in the repair, maintenance, and replacement-related sectors,” he said. “… I would say this has been the norm now for many years. The categories associated with the big-ticket options are those categories in the sales categories that continue to fall short.”
Lowe’s CEO, Marvin Ellison, said during the call that the company is seeing a change in the way high-income customers shop compared to low-income customers as economic pressure increases.
“What we’ve seen so far is what we’ve seen all year, and that’s that we’re operating and what we can describe as a K-shaped economy where the high-income consumer is spending and using new things, and they’re spending on things to modernize their home, and the low-income consumer is a little bit more cautious and a little bit more conservative based on things that we don’t know much about,” Ellison said.
Lowe’s customers cut back on purchases for major home improvement projects. Photo by Scott Olson on Getty Images
Lowe’s CEO reveals why customers are switching gears
He also flagged that challenges in the US housing market are having a negative impact on DIY customers.
“This has been the toughest real estate market I’ve been in this business since the financial crisis,” Ellison said. “It’s almost exclusive or unique to the DIY customer. That’s where most of our revenue comes from.”
Mortgage rates have fallen sharply since 2022, the same year the 30-year mortgage rate at 6% exceeded 6%. After seeing an improvement towards the end of last year, mortgage rates have gradually increased and rebounded in recent months.
According to data from the National Association of Realtors, the 30-year mortgage rate averaged 6.33% in April, up from 6.18% in March and 6.05% in February.
Amidst this uptick, existing home sales in April rose 0.2% on the month, but were down from a year ago.
In a press release, Lawrence Yun, economist for the National Association of Realtors, said the number of days on the market “is increasing on average, which means buyers are taking their time before making decisions.”
Lowe’s relies on price to increase customer demand
As uncertainty in the housing market continues, Lowe’s plans to double price cuts to keep customers busy.
“We continue to listen to the customer, and they’re looking at all these values that we’re bringing to the market,” said William Boltz, senior vice president of merchandising at Lowe’s, during the earnings call.
“And then, if we think about Q2 (second quarter of 2026), what’s in front of us coming this Memorial Day weekend, obviously, to continue to maintain these premium prices and focus on the customer,” he continued.
Other Merchandise:
Lowe’s expects its comparable sales this year to be flat or up 2% year over year.
“We started this year with a quiet idea that we would grow a little bit in the home improvement sector,” said Ellison. “And we’re actually laying out our roadmap for sharing and improving the market.”
In an analyst note obtained by TheStreet, Bank of America research analyst Christopher Nardone wrote that his agency lowered its fiscal year 2026 earnings-per-share (EPS) estimates for Lowe’s by $0.10 to $12.33 in light of a “weak” second-quarter sales forecast.
“Given the growing demand and cost pressures, we think the lower end of mgmt’s EPS guidance is unlikely to improve housing fundamentals,” Nardone wrote in the note. “Mgmt is relying on sales driver programs such as promotions and advertising to help bolster demand in the weak DIY market while cost pressures remain constant.”
It’s important for Lowe’s to focus on improving the customer experience with value this year, as it battles economic headwinds. A recent JD Power survey found that the company lags behind its top competitors in the home improvement retail market in terms of customer satisfaction.
2026 home improvement consumer satisfaction ratings:
I a measure of consumer satisfaction for the US home improvement dealers is 672 (with an average of 1,000 points), up 1 point from the same survey in 2025.
Menards has it very high customer satisfaction score, 690.
The Home Depot takes second place satisfaction rating of 679.
Ace Hardware fall behind Home Depot with 673 The result.
“While there have been significant gains in many operating areas, consumers cannot ignore rising prices,” said Michael Taylor, senior managing director at JD Power, in a press release. “This sensitivity to the price paid has a direct impact on trust in the seller, as both of these measures have resulted in a decrease in satisfaction this year.”
“Even with the recent emphasis on technology and delivery, home improvement shoppers still want in-store advice, and retailers who invest in knowledgeable, service-oriented employees will be in the best position to rebuild trust and drive long-term loyalty,” he continued.
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This story was originally published by TheStreet on May 24, 2026, where it appeared first in the Marketing category. Add TheStreet as a favorite source by clicking here.
