Lowe's CEO calls housing market hardest

Lowe’s CEO Marvin Ellison used the company’s first-quarter earnings call on May 20 to describe the U.S. housing backdrop in unusually blunt terms. Ellison said it was “the most difficult housing market” he had faced since the financial crisis, even as Lowe’s kept its full-year forecast in place and pointed to steady demand in parts of the business. The company said comparable sales in fiscal 2026 are still expected to range from flat to up 2%, and total sales are projected at $92 billion to $94 billion. Yahoo Finance reported Ellison’s comments on Thursday after Lowe’s released results and spoke with investors. ### What exactly did Marvin Ellison say? Marvin Ellison said on the May 20 earnings call that this was the hardest housing market he had seen since the financial crisis. Yahoo Finance reported the comment on May 21, and local coverage from the Charlotte Observer said Ellison made the remark while discussing the current home-improvement environment. (finance.yahoo.com) CNBC reported that Ellison also told analysts Lowe’s was still gaining share in what he called a “challenging housing environment” shaped by elevated interest rates, higher costs and low housing turnover. Those conditions have weighed most heavily on larger do-it-yourself projects, an area both Lowe’s and Home Depot have flagged in recent quarters. (finance.yahoo.com) ### What did Lowe’s tell investors about 2026? Lowe’s said on May 20 that it was affirming its fiscal 2026 outlook. In its earnings release, the company said comparable sales were expected to be flat to up 2% from the prior year, while operating margin was projected at 11.2% to 11.4% and adjusted diluted earnings per share at about $11.75 to $12.25. (cnbc.com) Yahoo Finance said that comparable-sales range was below the 2% growth analysts tracked by Bloomberg consensus had been looking for. CNBC reported the company’s adjusted earnings per share for the quarter came in at $3.03, while quarterly comparable sales rose 0.6%. (corporate.lowes.com) ### If the market is so weak, why didn’t Lowe’s cut guidance? Lowe’s said first-quarter sales rose to $23.1 billion, helped by spring demand, online growth and sales to home professionals. CNBC reported strength in appliances, home services and sales to contractors also supported the quarter. (finance.yahoo.com) Ellison told Yahoo Finance that the business was performing well in the early part of the second quarter as weather improved ahead of Memorial Day, Father’s Day and the Fourth of July. That left Lowe’s maintaining its annual targets rather than lowering them. (corporate.lowes.com) ### Where do Memorial Day promotions fit into this story? Memorial Day promotions are arriving as retailers try to capture seasonal home-improvement demand. DealNews said on May 21 that Blinds.com was running a Memorial Day Mega Sale with discounts of up to 50%, an extra 10% off with a promo code and free shipping. The deal site said the sale ends May 27. (finance.yahoo.com) Blinds.com said in its own sale materials that the promotion runs from May 20 to May 27 and includes up to 50% off select brands and free shipping. The company’s sale page also said customers could get free samples and installation help. ### What should readers watch next? May 27 is the stated end date for the Blinds.com Memorial Day Mega Sale, according to DealNews and Blinds.com. (dealnews.com) Lowe’s next major read on consumer demand is likely to come through the summer selling period that Ellison specifically identified — Memorial Day, Father’s Day and the Fourth of July. (blinds.com)