By Shaina Mishkin
Not everyone is "do it yourself" when it comes to home repairs. Lowe's is tapping into that need with a home maintenance service that could boost its revenue.
The home improvement retailer in March announced a new subscription service for members of its free rewards program. HomeCare+ costs $99 annually, which covers two visits by Lowe's associates to deal with small home maintenance tasks, such as cleaning electric dryer vents, replacing HVAC air filters, lubricating garage doors, or changing light bulbs. Subscribers receive a 5% discount on products required to complete the services.
The program "is solving an unmet need," a team of Jefferies analysts wrote in a Thursday note reaffirming the stock as one of its favored stock picks. The analysts have a $278 price target for the stock, which was trading at $207.73 on Thursday. Shares are down almost 14% so far this year.
The program could lift Lowe's subscription revenue, the analysts wrote. "Homecare+ is a differentiated solution for new Gen-Z / Millennial homeowners with priorities outside of home maintenance, middle-aged working professionals who'd rather delegate, and aging Boomers with less mobility," they said.
It's not unusual for first-time home-buyers to face a learning curve in home maintenance, says Todd Luong, a real estate agent with Re/Max DFW Associates. "They've been renting their whole lives and they're used to just calling the landlord any time something breaks," he says.
Lowe's stock has struggled this year along with the broader housing market. A robust market for home sales typically drives more spending on home improvement costs as owners prepare to list or new owners customize. But higher mortgage rates and prices, along with a limited supply of homes for sale in some parts of the country, have kept sales crawling. Employment concerns and rising costs haven't helped.
"Weakening job security among upper-middle income homeowners and rising project labor costs lead us to believe large-ticket contractor-assisted projects will be increasingly deferred," the analysts wrote. "Smaller-ticket DIY-oriented projects will lead the eventual housing recovery, which positions LOW favorably."
A company spokesperson declined to share how many customers are using the services, but said Lowe's is "pleased with the customer response since the launch." Lowe's ran a pilot program in select stores for about a year before the announcement in March.
Write to Shaina Mishkin at shaina.mishkin@dowjones.com
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June 04, 2026 15:30 ET (19:30 GMT)
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