Home Depot & Lowe’s Q2 Earnings Provide Good Snapshot

The Home Depot and Lowe’s continued their rivalry in earnings calls on two consecutive days last week. Here are some of the highlights. 

# # # Sales strengths # # #

Home Depot
Of 16 merchandising departments, 13 posted positive comps: storage, electrical, hardware, power, plumbing, indoor garden, kitchen, paint, bath, outdoor garden, building materials, flooring and millwork. The three departments not making the list were appliances, lighting and lumber.

Big ticket ($1,000 plus) comp transactions were up 2.4 percent from the same quarter last year. 

"We were pleased with the performance we saw in portable power and patio, however larger discretionary projects remain under pressure," said Billy Bastek, EVP merchandising.

Lowe's
Of 13 merchandise divisions, 9 delivered positive comps, including the seventh consecutive quarter of positive comp-sales growth in appliances. 

# # # Tickets and transactions # # # 

Home Depot 
Comp average ticket increased 2.8 percent, and comp transactions decreased 1.0 percent.

Lowe's 
Comp average ticket increased 2.3 percent, and comp transactions decreased 2.1 percent.

# # # Online sales # # #

Home Depot
Sales leveraging Home Depot's digital platforms increased 11 percent compared to the second quarter of last year. That growth marks the fifth consecutive quarter of double-digit year-over-year growth in e-commerce. 

Lowe's
Online sales growth of 15.7 percent. The retailer partially credited online AI agent, MyLow. The conversion rate for online customers who use MyLow is triple that of customers who do not use the tool, the company said.

# # # The pro # # #

Home Depot
Pro sales posted positive comps and outperformed DIY sales.

Lowe's
In Building Products, the company generated broad-based growth with positive comps in Rough Plumbing, Millwork, Electrical, and Lumber. "These results reflect our strategic investments in Pro and ongoing strength in repair and maintenance projects," said William Boltz, EVP - merchandising.

# # # The outlook # # #

Home Depot
Comp store sales in a range from flat to positive 2 percent
Total sales growth in a range from 2.5 percent to 4.5 percent
SRS organic sales growth in the mid single digits
Open about 15 new stores and 40 to 50 new SRS branches. 
Capital expenditures of about 2.5 percent of sales for fiscal 2026.

Lowe's 
Full-year outlook was updated in line with the bottom end of previous guidance, including:
Sales of about $92 billion
Comp-store sales coming in about flat.
Capital expenditures of up to $2.5 billion.

# # # The macroeconomic environment # # #

Home Depot
EVP and CFO Richard McPhail: "While consumer uncertainty and housing affordability continue to pressure demand for larger home improvement projects, we remain focused on what we can control."

Lowe's
CEO Marvin Ellison: “While the long-term fundamentals supporting home improvement remain intact, the near-term environment continues to be dynamic. Elevated fuel prices combined with broader economic uncertainty have influenced household budgets. Customers continue to tell us that they're being cautious about their spending and prioritizing where and when they invest in their homes.”