Lowe’s finalizes billion-dollar acquisition to win back customers

Over the past year, Lowe’s has faced significant challenges in attracting customers, as many are battling inflation, the impact of tariffs and an uncertain housing market.

In its latest earnings report, the home improvement retailer said sales slightly increased during the second quarter of this year; however, customer behavior continued to be concerning.

• Comparable sales increased by 1.1% year-over-year.

• The average amount of money customers spent per purchase spiked by 2.9%,

• Comparable transactions declined by 1.8%.

Also, recent data from Placer.ai revealed that overall customer visits to Lowe’s same-store locations decreased by 3.9% year-over-year during the quarter.

During an earnings call in August, Lowe’s Chief Financial Officer Brandon Sink said that challenges in the U.S. housing market and higher labor costs have caused its Pro customers (professional contractors) to pull back on completing large home improvement projects and instead focus on smaller ones that involve repairs, remodeling and maintenance.

“We’re still working through some short-term challenges, including elevated mortgage rates, cautious consumer affordability remains a pressure point that results in the lock-in effect that we’ve been seeing and also a depressed housing market.”

While the average 30-year mortgage rate continues to sit above 6%, a recent report from the National Association of Realtors (NAR) found that existing-home sales dropped by 0.2% month-over-month in August, while the median existing-home sales price increased to $422,600, a 2% year-over-year increase.

“Home sales have been sluggish over the past few years due to elevated mortgage rates and limited inventory,” said NAR Chief Economist Lawrence Yun in a press release. “However, mortgage rates are declining and more inventory is coming to the market, which should boost sales in the coming months.”

As Lowe’s Pro customers continue to avoid tackling large home improvement projects, the retailer has finalized a billion-dollar deal to help combat this concerning trend.

Lowe’s has completed its $8.8 billion acquisition of Foundation Building Materials, a leading distributor of interior building products such as hardware, drywall, insulation, ceiling systems, etc., for residential and commercial professionals.

The home improvement retailer first announced its plans to acquire Foundation Building Materials (FBM) in August. Through this acquisition, Lowe’s plans to expand its offerings to its Pro customers, hoping that it could have a positive domino effect on sales and profits.

Related: Home Depot announces convenient service for customers

“Completing the acquisition of FBM is an important step in accelerating our Total Home strategy to serve large Pro customers within a $250 billion total addressable market,” said Lowe’s CEO Marvin Ellison in a press release. “We would like to extend a warm welcome to the FBM team, and we look forward to building on their proven track record of profitable growth.”

The move from Lowe’s comes after it completed its acquisition of Artisan Design Group (ADG) for about $1.3 billion in June. ADG specializes in providing design, distribution and installation services for interior surface finishes such as flooring and cabinets to home builders and property managers. This move also helped Lowe’s expand its pro offerings to customers.

Lowe’s big bet on building up its Pro business to boost sales follows in the footsteps of its top rival, Home Depot, which recently increased its Pro offerings after it also noticed its customers were avoiding large home improvement projects. Its same-store foot traffic also dipped by 2.6% year-over-year during the second quarter this year, according to data from Placer. ai.

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Last month, Home Depot closed its $5.5 billion acquisition of GMS, a large distributor of building products such as drywall, ceilings and steel framing.

The year before, it acquired building material supplier SRS Distribution for $18.25 billion. SRS distributes landscaping, roofing and pool construction products.

“The addition of GMS further enhances SRS’s position as a leading multi-category building materials distributor, bringing differentiated capabilities, product categories and customer relationships that are highly complementary to SRS’s business today,” said Home Depot CEO Ted Decker in a press release last month. “We want to serve the Pro across their entire project, and the combination of SRS and GMS will enable cross-selling synergies, strengthen our capabilities, and bring even more opportunities to grow with this important customer.”

Related: Home Depot seals billion-dollar acquisition to win back shoppers

This story was originally reported by TheStreet on Oct 11, 2025, where it first appeared in the Retail, Shopping Malls, Chain Stores News & Analysis section. Add TheStreet as a Preferred Source by clicking here.