Home improvement retailer Lowe’s reduced its full-year sales and profit forecast on Tuesday despite reporting a $23.59 billion revenue in the second quarter, beating estimates.
Lowe’s expects same-store revenue to fall 3.5% to 4% this year, more than its prior projection of a decline of 2% to 3%.
The company’s same-store sales fell 5.1% in the previous quarter as it saw fewer discretionary home projects.
Lowe’s CEO, Marvin Ellison, says people are waiting for the Fed to cut rates. He told CNBC that “inflation remains high” and “big-ticket purchases are being delayed as customers sit back and wait for interest rates to fall.”
Fed Chair Jerome Powell hinted that a rate cut could arrive as soon as September.
Lowe’s estimates come as home-improvement demand slows nationwide. Last week, Home Depot told investors its sales could drop as much as 4% this year, more than the 1% it anticipated.
At the same time, discount and wholesale retailers like Walmart are experiencing strong consumer spending, boosting their yearly outlook.