Lowe’s is trimming its corporate workforce and issuing restrained guidance as elevated mortgage rates and weak housing turnover continue to pressure home improvement spending.
The retailer eliminated 600 corporate and support roles earlier this month as part of broader productivity efforts. CEO Marvin Ellison said the reductions are designed to increase financial agility while preserving investment in customer-facing areas.
For the year ahead, Lowe’s expects total sales between $92 billion and $94 billion, up 7% to 9%, with comparable sales projected to range from flat to up 2%.
Capital expenditures are forecast at $2.5 billion. Executives described the outlook as “cautious,” citing ongoing macroeconomic headwinds.
The guidance follows a stronger-than-expected fourth quarter. Net sales rose 10.9% year over year to $20.6 billion, while comps increased 1.3%.
Nine of 14 merchandising categories posted positive comps, including electrical, kitchen and bath, paint and millwork.
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The company also reported growth in pro, online and home services sales, alongside a solid holiday performance.
Still, Ellison acknowledged that large discretionary DIY projects remain under pressure.
“Consumers are reluctant to make significant investments in their homes within this challenging macro environment,” he told analysts, pointing to subdued housing turnover and elevated borrowing costs.
In response, Lowe’s is focusing on operational levers within its control, including expanding its pro and home services capabilities.
The retailer has strengthened its professional contractor business through acquisitions of Foundation Building Materials and Artisan Design Group, moves aimed at positioning the company for an eventual housing recovery.
With housing recovery expected to be gradual, Lowe’s is betting that disciplined cost control and deeper pro penetration will help it outperform peers as conditions stabilize.
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