Dive Brief:
- Lowe’s digital experience investments drove strong online sales growth of 15.7% in the second quarter, CEO Marvin Ellison said on a Q2 2026 earnings call Wednesday.
- Those investments include more personalized experiences on the retailer’s website and mobile app, expanded visualization capabilities, growth of its online marketplace and its AI assistant Mylow.
- “Online customers who use Mylow are three times as likely to convert as customers who do not use the tool, “reinforcing that a well-designed agentic AI experience can be a clear driver in the purchasing decision,” Ellison said on the call.
Dive Insight:
Strong online, pro and home services sales were bright spots in an otherwise disappointing quarter, as elevated fuel prices and broader economic certainty weigh on household spending.
Comparable sales for the quarter were flat, up just 0.2% year over year to $26 billion, according to an earnings release. The retailer updated its outlook for the full year to $92.0 billion in total sales, at the bottom end of its prior guidance.
“Customers continue to tell us that they're being cautious about their spending and prioritizing where and when they invest in their homes,” Ellison said. “As a result, discretionary DIY demand remains under pressure.”
Still, like The Home Depot, which reported Tuesday, Lowe’s remains confident that the current environment is temporary, with executives pointing to pent-up deferred project demand in home improvement and five consecutive quarters of positive comparable sales.
“So we know that this environment we're in is cyclical,” Ellison said. “It goes down, but at some point it comes back up.”
Lowe’s home services — which connects customers to a network of professional installation, maintenance and project management options — provided another quarter of growth. Ellison credited “the simpler and more convenient experience we've created, especially in replacement projects.”
“The enhancements have improved conversion, cycle time, and customer satisfaction, giving us confidence in our position to capture more of these larger projects when homeowners are ready to take them on,” Ellison said.
Growing adoption of Mylow Companion, Lowe’s AI assistant for employees, is also contributing to a better experience for customers, as the tool provides associates more confidence to help customers quickly, according to Joe McFarland, EVP of stores at Lowe’s.
Lowe’s loyalty programs continue to drive conversions. More than 30 million customers belong to the MyLowe’s Rewards loyalty program, and members shop more frequently and spend more per visit than non-members, according to Bill Boltz, our EVP of merchandising.
