By Sarah Nassauer
Home-improvement retailers Lowe's and Home Depot continue to face headwinds from the housing market.
Both retailers reported that their most recent quarterly comparable sales were up less than 1% this week, missing analysts forecasts. They both cited higher mortgage rates and consumers who continue to be cautious about big home-improvement projects. Home Depot has a slight advantage in this environment as it tends to serve more professional clients that keep projects humming, a balance Lowe's is working to remedy.
"I think overall, this has been the most difficult housing market that I've faced in this business since the financial crisis," said Lowe's Chief Executive Marvin Ellison on a conference call with analysts Wednesday.
Both retailers said they see shoppers still spending, but said the environment ahead was uncertain, particularly as fuel prices rise.
-- The macro-economic environment "certainly introduced some new risks and uncertainties here in the last three or so months," said Lowe's Chief Financial Officer Brandon Sink. "We are seeing a pretty immediate impact from the oil prices," moving higher, he said, as it pressures fuel and commodity products such as resin and plastics. Much of that impact is still to come, he said, and the retailer is working with its vendors to share the cost burden.
-- Tariff refunds could help ease the burden of higher fuel costs, said Home Depot CFO Richard McPhail Tuesday. Fuel costs will hit the retailer directly through transportation expenses, as well as through input costs, he said. But Home Depot has filed for tariff refunds, which will offset the cost, he said. "While we don't disclose the amount and while we have received an immaterial amount to date, we have assumed that that could provide a significant offset."
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May 20, 2026 14:11 ET (18:11 GMT)
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