Home Retailers Face Challenges and Transformations Amid Economic Headwinds
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 07 2026
0mins
Source: Yahoo Finance
- Weak Consumer Demand: Home improvement retailers faced significant challenges over the past year due to rising prices, job losses, and high interest rates, with foot traffic for Home Depot and Lowe's declining by 3.8% and 3.5% respectively in Q1 2025, indicating a direct impact of the economic environment on consumer spending.
- High Rates Affecting Confidence: Lowe's CEO Marvin Ellison highlighted that affordability concerns and high interest rates in the housing market have severely impacted consumer confidence, leading to reduced spending on larger discretionary items, reflecting the profound effects of economic uncertainty on the retail sector.
- AI Technology Implementation: In 2025, Lowe's rolled out AI voice agents to reduce employee distractions from phone calls on the sales floor, aiming to enhance customer service quality, although consumer preference for human interaction over AI remains a challenge, indicating the need for a balance between technology and personalized service.
- Divergent Competitive Strategies: Home Depot and Lowe's exhibit significant differences in their AI investment strategies, with the former adopting a more disciplined execution-first approach, while the latter treats AI as foundational infrastructure to rebuild its business model, aiming to enhance customer experience and employee capabilities, reflecting different paths in market adaptability.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy LOW?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on LOW
Wall Street analysts forecast LOW stock price to fall
22 Analyst Rating
16 Buy
6 Hold
0 Sell
Moderate Buy
Current: 285.530
Low
250.00
Averages
278.27
High
316.00
Current: 285.530
Low
250.00
Averages
278.27
High
316.00
About LOW
Lowe's Companies, Inc. is a home improvement company. The Company offers a complete line of products for construction, maintenance, repair, remodeling, and decorating. It offers home improvement products in various categories, including appliances, seasonal and outdoor living, lumber, lawn and garden, kitchens and bath, hardware, building materials, millwork, paint, rough plumbing, tools, electrical, flooring, and decor. It is focused on offering a wide selection of national brand-name merchandise complemented by its selection of private brands. Its services include installed sales and Lowe's Protection Plans and Repair Services. The Company offers installation services through independent contractors in many of its product categories. It offers extended protection plans for certain products within the appliances, kitchens and bath, decor, millwork, rough plumbing, electrical, seasonal and outdoor living, tools, and hardware categories. It operates over 1,700 home improvement stores.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Lowe's Cuts 600 Jobs to Optimize Resource Allocation
- Layoff Announcement: Lowe's plans to cut approximately 600 corporate and support roles, representing less than 1% of its total workforce, to better support store employees and enhance customer service experience.
- Industry Context: This layoff aligns with trends among other major retailers like Target and Home Depot, which have also announced job cuts of 500 and 800 positions respectively, indicating a collective effort in the retail sector to optimize resource allocation and improve customer satisfaction.
- Earnings Expectations: Lowe's is expected to report $20.34 billion in Q4 2024 revenues, reflecting a 10% increase from $18.55 billion in the same period last year, with earnings per share projected at $1.94, slightly above last year's $1.93.
- Market Sentiment: On Stocktwits, retail sentiment around Lowe's shares shifted from 'bullish' to 'neutral', indicating cautious investor sentiment regarding the company's future performance, despite a 13% increase in stock price over the past year.
See More
LOWE'S COMPANIES TO CUT ABOUT 600 CORPORATE AND SUPPORT JOBS, REPRESENTING UNDER 1% OF TOTAL WORKFORCE - COMPANY SPOKESPERSON
- Corporate Job Reductions: Lowe's has announced the reduction of approximately 600 corporate and support roles.
- Impact on Workforce: This reduction represents less than 1% of the company's total workforce.
See More
LOWE'S TO ELIMINATE 600 CORPORATE AND SUPPORT POSITIONS - WSJ
Job Cuts Announcement: Lowe's is cutting 600 corporate and support jobs as part of a restructuring effort.
Impact on Workforce: The layoffs are aimed at streamlining operations and improving efficiency within the company.
See More
Cyclical Stocks Show Strong Performance Amid Market Shifts
- DuPont Restructuring: DuPont's split into Qnity Electronics and the new DuPont, focusing on healthcare and water, has shown strong quarterly results, indicating significant progress in its transformation and potential to enhance market competitiveness.
- Dover's Performance Surge: Dover's investments in industrial sectors have resulted in double-digit bookings and near double-digit earnings growth, demonstrating robust performance in a low-interest-rate environment and signaling future growth potential.
- Honeywell's Spin-Off Plans: As Honeywell approaches its split into aerospace and automation businesses, market recognition of its value is increasing, particularly for the security automation segment, which could benefit from lower rates, driving the stock price recovery from the $190s last year.
- Eaton and GE Vernova Price Target Increases: Eaton and GE Vernova's price targets have been raised from $410 and $800 to $425 and $875 respectively, reflecting strong market expectations for data center demand, despite both companies having other business developments.
See More
Wall Street Analysts Forecast 18% Rise for S&P 500
- S&P 500 Forecast: Wall Street analysts predict an 18% increase in the S&P 500 to 8,200 over the next year, reflecting optimistic market sentiment about economic recovery, which may attract more investors into the market.
- Sector Performance: The information technology and consumer discretionary sectors are expected to grow by 33% and 22%, respectively, indicating that these industries will be focal points for investors, particularly through exposure via Vanguard ETFs.
- Vanguard Tech ETF Performance: The Vanguard Information Technology ETF achieved a total return of 776% over the past decade, equivalent to an annual growth of 24%, showcasing its strong performance in the tech sector, despite underperforming during market corrections.
- Concentration Risk Management: The top three stocks in the Vanguard Information Technology and Consumer Discretionary ETFs account for 44% and 43% of their performance, respectively, prompting investors to consider diversifying their portfolios to mitigate concentration risk and enhance resilience.
See More
Wall Street Optimistic on Tech and Consumer Sectors
- Sector Outlook: Wall Street analysts forecast that the information technology and consumer discretionary sectors will outperform the S&P 500 over the next year, with expected gains of 33% and 22% respectively, indicating growing investor confidence in these areas.
- ETF Investment Opportunities: Investors can gain exposure to these sectors through the Vanguard Information Technology ETF and Vanguard Consumer Discretionary ETF, which heavily feature stocks like Nvidia, Apple, and Microsoft, as well as Amazon, Tesla, and Home Depot, reflecting a strong focus on tech and consumer goods.
- Long-Term Return Potential: The Vanguard Information Technology ETF achieved a total return of 776% over the past decade, averaging 24% annually, while the Consumer Discretionary ETF delivered a total return of 311%, averaging 15% annually, highlighting the attractiveness of these sectors for long-term investment.
- Risk and Diversification Strategy: Despite underperformance during market corrections, investors should consider diversifying their portfolios by purchasing index funds tracking financials, industrials, or utilities to mitigate risks associated with economic fluctuations.
See More
Lowe's Cuts 600 Jobs to Optimize Resource Allocation
- Layoff Announcement: Lowe's plans to cut approximately 600 corporate and support roles, representing less than 1% of its total workforce, to better support store employees and enhance customer service experience.
- Industry Context: This layoff aligns with trends among other major retailers like Target and Home Depot, which have also announced job cuts of 500 and 800 positions respectively, indicating a collective effort in the retail sector to optimize resource allocation and improve customer satisfaction.
- Earnings Expectations: Lowe's is expected to report $20.34 billion in Q4 2024 revenues, reflecting a 10% increase from $18.55 billion in the same period last year, with earnings per share projected at $1.94, slightly above last year's $1.93.
- Market Sentiment: On Stocktwits, retail sentiment around Lowe's shares shifted from 'bullish' to 'neutral', indicating cautious investor sentiment regarding the company's future performance, despite a 13% increase in stock price over the past year.
See More
LOWE'S COMPANIES TO CUT ABOUT 600 CORPORATE AND SUPPORT JOBS, REPRESENTING UNDER 1% OF TOTAL WORKFORCE - COMPANY SPOKESPERSON
- Corporate Job Reductions: Lowe's has announced the reduction of approximately 600 corporate and support roles.
- Impact on Workforce: This reduction represents less than 1% of the company's total workforce.
See More
LOWE'S TO ELIMINATE 600 CORPORATE AND SUPPORT POSITIONS - WSJ
Job Cuts Announcement: Lowe's is cutting 600 corporate and support jobs as part of a restructuring effort.
Impact on Workforce: The layoffs are aimed at streamlining operations and improving efficiency within the company.
See More
Cyclical Stocks Show Strong Performance Amid Market Shifts
- DuPont Restructuring: DuPont's split into Qnity Electronics and the new DuPont, focusing on healthcare and water, has shown strong quarterly results, indicating significant progress in its transformation and potential to enhance market competitiveness.
- Dover's Performance Surge: Dover's investments in industrial sectors have resulted in double-digit bookings and near double-digit earnings growth, demonstrating robust performance in a low-interest-rate environment and signaling future growth potential.
- Honeywell's Spin-Off Plans: As Honeywell approaches its split into aerospace and automation businesses, market recognition of its value is increasing, particularly for the security automation segment, which could benefit from lower rates, driving the stock price recovery from the $190s last year.
- Eaton and GE Vernova Price Target Increases: Eaton and GE Vernova's price targets have been raised from $410 and $800 to $425 and $875 respectively, reflecting strong market expectations for data center demand, despite both companies having other business developments.
See More
Wall Street Analysts Forecast 18% Rise for S&P 500
- S&P 500 Forecast: Wall Street analysts predict an 18% increase in the S&P 500 to 8,200 over the next year, reflecting optimistic market sentiment about economic recovery, which may attract more investors into the market.
- Sector Performance: The information technology and consumer discretionary sectors are expected to grow by 33% and 22%, respectively, indicating that these industries will be focal points for investors, particularly through exposure via Vanguard ETFs.
- Vanguard Tech ETF Performance: The Vanguard Information Technology ETF achieved a total return of 776% over the past decade, equivalent to an annual growth of 24%, showcasing its strong performance in the tech sector, despite underperforming during market corrections.
- Concentration Risk Management: The top three stocks in the Vanguard Information Technology and Consumer Discretionary ETFs account for 44% and 43% of their performance, respectively, prompting investors to consider diversifying their portfolios to mitigate concentration risk and enhance resilience.
See More
Wall Street Optimistic on Tech and Consumer Sectors
- Sector Outlook: Wall Street analysts forecast that the information technology and consumer discretionary sectors will outperform the S&P 500 over the next year, with expected gains of 33% and 22% respectively, indicating growing investor confidence in these areas.
- ETF Investment Opportunities: Investors can gain exposure to these sectors through the Vanguard Information Technology ETF and Vanguard Consumer Discretionary ETF, which heavily feature stocks like Nvidia, Apple, and Microsoft, as well as Amazon, Tesla, and Home Depot, reflecting a strong focus on tech and consumer goods.
- Long-Term Return Potential: The Vanguard Information Technology ETF achieved a total return of 776% over the past decade, averaging 24% annually, while the Consumer Discretionary ETF delivered a total return of 311%, averaging 15% annually, highlighting the attractiveness of these sectors for long-term investment.
- Risk and Diversification Strategy: Despite underperformance during market corrections, investors should consider diversifying their portfolios by purchasing index funds tracking financials, industrials, or utilities to mitigate risks associated with economic fluctuations.
See More
