Lowe’s said it’s seeing less demand for expensive DIY home projects.
by Sarina Trangle
Investopedia
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The DIY crowd isn’t doing it for Lowe’s.
In a tight housing market, Americans are remodeling less, and that’s challenging for a “DIY dominant business” like Lowe’s, CEO Marvin Ellison said during an earnings call Tuesday. Fewer people are looking to market a home or make it their own: Housing turnover is near a 30-year low, Ellison said, while Americans are still feeling squeezed by high interest rates and inflation.
“Continued underlying pressure in big-ticket discretionary—so, categories like kitchen and bath, flooring and décor—[we] really continue to just see that tied to the macro,” CFO Brandon Sink said, according to a transcript of the call made available by AlphaSense.
In response, executives said, Lowe’s Cos. (LOW) has been trying to focus its core customer on less expensive projects like painting, and generate excitement with a rewards program. The retailer is also trying to serve more home contractors, they said.