Lowe's slightly exceeded expectations in the second quarter and raised its annual forecast.

At the same time, the company announced the purchase of Foundation Building Materials, a building materials dealer that Lowe's is acquiring for $8.8 billion in cash. With this move, CEO Marvin Ellison aims to expand the business with professional construction customers - a response to the recent weakening DIY demand amid a stagnant real estate market. The completion is expected in the fourth quarter.

The sluggish market conditions are also reflected in the decline in visitor numbers: According to Placer.ai, customer traffic in Lowe's stores fell by 3.9% year-on-year, while at competitor Home Depot it was only 2.6%. While Home Depot focuses more on professional customers, Lowe's has traditionally been more dependent on the DIY segment – increasing vulnerability to consumer restraint.

Despite these burdens, management is optimistic. The company raised its full-year revenue forecast to $84.5 to $85.5 billion (previously $83.5 to $84.5 billion) and now expects earnings of $12.10 to $12.35 per share. Analysts had on average forecasted $84.38 billion in revenue and $12.22 in earnings.

Ellison spoke of a "stable performance" in both the professional and DIY business. With the integration of Foundation Building Materials, Lowe's aims to accelerate its transformation and become less dependent on short-term fluctuations in the retail business.