10:45 AM EDT, 08/20/2024 (MT Newswires) -- Lowe's (LOW) reduced fiscal 2024 outlook reflects broad consumer demand pressure that continues to weigh on the overall home improvement industry, Wedbush Securities said in a Tuesday note.

The company cut its full-year outlook despite fiscal Q2 operating margins and earnings per share coming in above analyst estimates, as pressure continued in its do-it-yourself segment while unfavorable weather adversely impacted sales in seasonal and other outdoor categories, Wedbush said.

Due mainly to its bigger exposure to the beleaguered DIY segment, Lowe's continues to underperform rival Home Depot ( HD ) , "while its strategy to capture a larger share of DIY seasonal sales through early season promotions may not have resonated through 2Q," Wedbush said.

However, Wedbush said the updated full-year guidance "implies material improvement and trends at least in line with HD in 2H24, which will be a key test for the company."

Wedbush has a neutral rating on the stock and a $250 price target.

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