Lowe’s is Betting on Rural Locations, Sees Consumer Softness

Lowe’s reported earnings yesterday for Q1 2023, and it was pretty much the same story that we heard from The Home Depot last week. It was a mix of bad weather, lumber deflation, and consumer softness leading to guiding down for the year.

As weather improves, we are optimistic that customers will reengage with spring projects, and we are ready to support the increased demand with our best in-stock position and staffing levels in 3 years, coupled with improved omnichannel and fulfillment capabilities. However, we are expecting a pullback in discretionary consumer spending over the near-term.