As Lowe's Companies, Inc. (NYSE: LOW) prepares to unveil its second-quarter fiscal 2024 earnings on Aug 20 before the opening bell, investors are keenly observing the company's performance. With a projected decline in both the top and bottom-line figures, the upcoming earnings release prompts a critical question: can Lowe's meet or exceed expectations despite these anticipated decreases in profitability? The Zacks Consensus Estimate for the to-be-reported quarter's revenues is pegged at $24 billion, which suggests a drop of 4% from the prior year's levels. However, the rate of decline shows a slight deceleration from a 4.4% decrease witnessed in the preceding quarter. The consensus mark for quarterly earnings has fallen by a couple of cents over the past 30 days at $3.96 per share, which calls for a decline of 13.2% from the year-ago quarter's reported figure. Factors at Play A primary area of concern for Lowe's remains the Do-It-Yourself (DIY) home improvement segment. In the first quarter of fiscal 2024, the company reported a 4.1% decline in comparable sales, with much of the weakness attributed to a drop in big-ticket purchases and fewer transactions. The trend is expected to have persisted into the second quarter as consumers continue to shy away from large, discretionary home projects. Underlying inflationary pressure and economic challenges have made consumers more cautious with their spending, leading to a focus on essential purchases rather than costly renovations or home upgrades. Given these challenges, we anticipate continued pressure on comparable sales, with a projected year-over-year decrease of 4.2% in the second quarter. Margins will be another critical area to watch in Lowe's second-quarter earnings. Ongoing cost challenges, coupled with a ...