Bank of America’s second-quarter building products tracker indicates a rebound in home improvement retail sales, with Home Depot and Lowe’s posting modest year-over-year growth in comparable sales. The bank’s data, covering the three months ended June 2026, shows improving momentum across categories, though performance remains uneven.
Home Depot reported a 1.7% increase in comparable sales, exceeding the low end of its full-year guidance range of flat to 2% growth. The retailer noted positive sales in 13 of 16 product categories, with higher average ticket sizes driving overall growth. Lowe’s posted a smaller 0.2% year-over-year gain in comparable sales but lowered its fiscal 2026 guidance to flat growth, down from a prior range of flat to 2%.
Product-level trends varied significantly. Siding sales rose at a high single-digit pace, supported by pricing power and the anniversary of destocking activity in the prior year’s second quarter. Insulation sales turned positive, buoyed by demand in U.S. non-residential construction and European markets. Flooring and paint sales grew at low single-digit rates, reflecting higher volumes and favorable price mix. Professional customer sales continued to outperform do-it-yourself spending at both retailers.
Not all categories fared as well. Plumbing sales declined year-over-year due to weaker volume, while doors and windows posted continued but decelerating declines. Cabinets and appliances both fell at mid-to-low single-digit rates, extending prior trends. Overall, 7 of 12 tracked product categories recorded positive year-over-year growth in the quarter, according to Bank of America’s analysis.
The mixed performance underscores a gradual recovery in the home improvement sector, with pricing strength offsetting uneven demand across segments. Analysts note that while professional contractors remain a key driver, broader consumer spending trends continue to shape the outlook.
