Home improvement and appliance retail company Lowe’s (NYSE:$LOW) released its second quarter earnings on Wednesday, August 23rd. The report did not impress investors, as it did not meet average analysts’ expectations in quarterly earnings. Additionally, the company also lowered its expectations this year regarding profit margins. Citing marketing and paying employees for longer shifts, Lowe’s lowered its operating margin from an increase of 120 basis points to an increase of 80-100 basis points. As a result, shares of Lowe’s fell. As of 1:59 PM EDT on Wednesday, August 23rd , Lowe’s stock has fallen by 5.62% to be at $71.61.

Lowe’s results for its second quarter earnings were a contrast to its biggest competitor, Home Depot Inc. (NYSE:$HD). Last week, Home Depot had released a quarterly earnings report that exceeded average analysts’ expectations. This could mean more trouble for Lowe’s in the near future.

For its second quarter, Lowe’s reported a net income was $1.42 billion, or about $1.68 per share. This was an increase year-over-year. In the same quarter last year, Lowe’s saw a net income of $1.17 billion, or about $1.31 per share. Not counting one-time items, Lowe’s earnings per share for the quarter was $1.57 – a narrow miss from the average analysts’ expectation of $1.61 per share, according to Thomson Reuters I/B/E/S. Additionally, Lowe’s reported a net sales of $19.50 billion. Although this was an increase year-over-year, average analysts’ net sales expectation of $19.53 billion was not met.

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