Equity Snap: Lowe’s Companies, Inc (LOW US): Resilient execution amid cautious demand; FY27 outlook tightened

研报英文原文证据摘录

19 August 2026

Equity Snap: Lowe’s Companies,

Inc (LOW US)

Resilient execution amid cautious demand;

FY27 outlook tightened

◆ 2Q benefited from tariff refunds, but management still guides

to a softer near-term backdrop

Lowe’s Companies, Inc (LOW US, USD215.64, Hold, TP USD220.00)

(Priced as of 18 Aug 2026)

Sales performance was positive: Lowes delivered positive top-line performance in

2QFY26, with net sales increasing 8.3% to USD26.0bn (in line with consensus and

HSBC). Comparable sales rose 0.2% in the quarter, supported by a 2.3% increase in

average ticket, which offset a 2.1% decline in average transactions reflecting continued

pressure on customer traffic and discretionary DIY demand. Monthly comps remained

volatile at -0.4% in May, +1.7% in June, and -1.2% in July. E-commerce remained a

key bright spot, with online sales up 15.7% y-o-y, while 9 of 13 products categories

posted positive comps. In comparison, Home Depot delivered stronger comps of

+1.7%, with a 2.8% increase in average ticket and smaller 1% decline in transactions.

Equities

Specialty Retail

United States

Joe Thomas*

Senior Analyst, Head of Equity Research Mexico

HSBC Mexico, S.A., Institucion de Banca Multiple, Grupo

Financiero HSBC

Guilherme Domingues*

Analyst, US Consumer Staples

Banco HSBC S.A.

Saket .*

Associate

Bangalore

* Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

not registered/ qualified pursuant to FINRA regulations

Cost and profits: Gross profit declined 77bps to 33% (yet was still 20bps above

HSBCe). This was despite a 30bp benefit from tariff reimbursement. However, given

that there was also an adverse 100bp impact from M&A last year in these results, the

underlying performance is broadly flat. The tariffs, as well as some lower credit

provisions, offset cost inflation (fuel and transportation). By way of contrast, Home

Depot yesterday reported a 25bp gross margin improvement after a 145bp tariff

benefit and a -60bp mix impact. On an underlying basis, therefore, it went backwards.

Lowe’s expects more tariff refunds to come through in Q3, though it does not guide

the quantum. It suggests that this could be reinvested in price.

…