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Lowe's Pro Momentum Adds Strength to Its Total Home Strategy
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Key Takeaways
LOW's Pro business delivered growth, helping companywide comparable sales rise 0.2% in Q2.
Repair demand and Pro strength drove positive comps across nine of Lowe's 13 merchandise divisions.
Lowe's is expanding its Pro reach through FBM and ADG acquisitions despite residential construction weakness.
Lowe’s Companies, Inc. (LOW - Free Report) is strengthening its Pro business through differentiated assortments, reliable inventory, dedicated service and fulfillment. Small and medium-sized professionals drove another quarter of growth as discretionary Do-It-Yourself (DIY) spending remained pressured. Management said these customers continue responding to investments centered on saving time, ensuring product availability and delivering value.
Pro investments and repair and maintenance demand supported second-quarter fiscal 2026 merchandise performance. Rough plumbing, millwork, electrical and lumber posted positive comparable sales, with rough plumbing recording six consecutive quarters of growth. Nine of Lowe’s 13 merchandise divisions delivered positive comps. Strength across Pro, online and Home Services helped companywide comparables rise 0.2%, marking a fifth consecutive positive quarter.
Survey feedback points to smaller projects among Lowe’s core Pro customers. They reported steady backlogs but said cautious homeowners favored repairs and maintenance over larger remodeling jobs. Companywide comparable average ticket increased 2.3%, reflecting modest price inflation and continued Pro strength. Comparable transactions declined 2.1%, reflecting pressure in weather-sensitive outdoor and seasonal categories.
Lowe’s digital tools help professionals plan, quote and manage their businesses within its platform, complemented by MyLowe’s Pro Rewards. Integration efforts at Foundation Building Materials (FBM) and Artisan Design Group (ADG) are progressing. Management believes these acquisitions position Lowe’s to serve larger Pros and capture more planned spending over the longer term.
Residential construction weakness nevertheless challenges both acquisitions, with ADG is fully exposed to this market, versus approximately 45% for FBM. Lowe’s outlook assumes continued second-half pressure. Still, management remains pleased with FBM’s commercial business, representing 55% of its operations, and continues pursuing integration benefits and tuck-in opportunities to strengthen the broader Pro platform.
LOW’s Price Performance, Valuation & Estimates
Shares of Lowe’s have inched up 16.5% over the past month compared with the industry’s 15.4% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, LOW trades at a forward price-to-sales ratio of 1.25, down from the industry’s average of 1.30.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Lowe’s fiscal 2026 earnings implies a year-over-year decline of 0.3%, whereas the same for fiscal 2027 indicates an uptick of 6.1%. Earnings estimates for fiscal 2026 and 2027 have been revised downward by a penny and 3 cents, respectively, over the past seven days.
The Zacks Consensus Estimate for Williams-Sonoma’s current financial-year sales and earnings indicates growth of 5.5% and 7.5%, respectively, from the year-ago reported numbers. WSM delivered a trailing four-quarter earnings surprise of 4.9%, on average.
Alliance Laundry Holdings Inc. (ALH - Free Report) is a provider of commercial laundry systems. It currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Alliance Laundry’s current financial-year earnings and sales suggests growth of 32.4% and 6.3%, respectively, from the year-ago actuals. ALH delivered a trailing four-quarter average earnings surprise of 19.7%.
SharkNinja, Inc. (SN - Free Report) is a global product design and technology company focused on small household appliances. It also carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for SharkNinja’s current financial-year earnings and sales indicates growth of 24.1% and 16.9%, respectively, from the year-ago actuals. SN delivered a trailing four-quarter average earnings surprise of 11.4%.
View the Zacks #1 Rank List
Image: Bigstock
Lowe's Pro Momentum Adds Strength to Its Total Home Strategy
Key Takeaways
Lowe’s Companies, Inc. (LOW - Free Report) is strengthening its Pro business through differentiated assortments, reliable inventory, dedicated service and fulfillment. Small and medium-sized professionals drove another quarter of growth as discretionary Do-It-Yourself (DIY) spending remained pressured. Management said these customers continue responding to investments centered on saving time, ensuring product availability and delivering value.
Pro investments and repair and maintenance demand supported second-quarter fiscal 2026 merchandise performance. Rough plumbing, millwork, electrical and lumber posted positive comparable sales, with rough plumbing recording six consecutive quarters of growth. Nine of Lowe’s 13 merchandise divisions delivered positive comps. Strength across Pro, online and Home Services helped companywide comparables rise 0.2%, marking a fifth consecutive positive quarter.
Survey feedback points to smaller projects among Lowe’s core Pro customers. They reported steady backlogs but said cautious homeowners favored repairs and maintenance over larger remodeling jobs. Companywide comparable average ticket increased 2.3%, reflecting modest price inflation and continued Pro strength. Comparable transactions declined 2.1%, reflecting pressure in weather-sensitive outdoor and seasonal categories.
Lowe’s digital tools help professionals plan, quote and manage their businesses within its platform, complemented by MyLowe’s Pro Rewards. Integration efforts at Foundation Building Materials (FBM) and Artisan Design Group (ADG) are progressing. Management believes these acquisitions position Lowe’s to serve larger Pros and capture more planned spending over the longer term.
Residential construction weakness nevertheless challenges both acquisitions, with ADG is fully exposed to this market, versus approximately 45% for FBM. Lowe’s outlook assumes continued second-half pressure. Still, management remains pleased with FBM’s commercial business, representing 55% of its operations, and continues pursuing integration benefits and tuck-in opportunities to strengthen the broader Pro platform.
LOW’s Price Performance, Valuation & Estimates
Shares of Lowe’s have inched up 16.5% over the past month compared with the industry’s 15.4% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, LOW trades at a forward price-to-sales ratio of 1.25, down from the industry’s average of 1.30.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Lowe’s fiscal 2026 earnings implies a year-over-year decline of 0.3%, whereas the same for fiscal 2027 indicates an uptick of 6.1%. Earnings estimates for fiscal 2026 and 2027 have been revised downward by a penny and 3 cents, respectively, over the past seven days.
Image Source: Zacks Investment Research
LOW currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
Williams-Sonoma, Inc. (WSM - Free Report) is a multi-channel specialty retailer of premium-quality home products. It currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Williams-Sonoma’s current financial-year sales and earnings indicates growth of 5.5% and 7.5%, respectively, from the year-ago reported numbers. WSM delivered a trailing four-quarter earnings surprise of 4.9%, on average.
Alliance Laundry Holdings Inc. (ALH - Free Report) is a provider of commercial laundry systems. It currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Alliance Laundry’s current financial-year earnings and sales suggests growth of 32.4% and 6.3%, respectively, from the year-ago actuals. ALH delivered a trailing four-quarter average earnings surprise of 19.7%.
SharkNinja, Inc. (SN - Free Report) is a global product design and technology company focused on small household appliances. It also carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for SharkNinja’s current financial-year earnings and sales indicates growth of 24.1% and 16.9%, respectively, from the year-ago actuals. SN delivered a trailing four-quarter average earnings surprise of 11.4%.