LOWE'S REPORTS FIRST QUARTER 2025 SALES AND EARNINGS RESULTS

Rhea-AI Summary

Lowe's (NYSE: LOW) reported its Q1 2025 financial results with net earnings of $1.6 billion and diluted EPS of $2.92, down from $3.06 in Q1 2024. Total sales decreased to $20.9 billion from $21.4 billion year-over-year, with comparable sales declining 1.7% due to unfavorable weather, partially offset by mid-single-digit Pro and online sales growth. The company maintained its full-year 2025 outlook, projecting total sales of $83.5-84.5 billion and comparable sales growth of 0-1%. Lowe's achieved the #1 ranking in Customer Satisfaction among Home Improvement Retailers by J.D. Power. The company paid $645 million in dividends and expects diluted EPS of $12.15-12.40 for the full year 2025.

Positive

• Achieved #1 ranking in Customer Satisfaction among Home Improvement Retailers by J.D. Power
• Mid-single-digit growth in Pro and online comparable sales
• Maintained full-year guidance despite challenges
• Strong dividend payment of $645 million to shareholders

Negative

• Net earnings declined to $1.6 billion from $1.75 billion year-over-year
• Comparable sales decreased 1.7%
• Total sales dropped to $20.9 billion from $21.4 billion
• Operating margin declined to 11.92% from 12.42% year-over-year

Insights

Financial Analyst

Lowe's Q1 results show slight sales decline and EPS drop amid housing headwinds, but company maintains full-year outlook.

Lowe's first quarter results reveal a 1.7% decrease in comparable sales, with total revenue declining to $20.9 billion from $21.4 billion in the same period last year. Diluted earnings per share fell to $2.92 from $3.06 year-over-year, representing a 4.6% decrease. The company attributed the sales decline primarily to unfavorable weather early in the quarter, though they highlighted bright spots with mid-single-digit growth in both Pro customer and online sales channels.

The operating margin contracted 50 basis points to 11.92% from 12.42% in the prior year, while gross margin improved slightly to 33.38% from 33.19%. SG&A expenses as a percentage of sales increased to 19.33% compared to 18.77% a year ago, indicating potential pressure on cost management. The company maintained strong cash flow, with operating cash flow of $3.38 billion for the quarter.

Despite these mixed results, Lowe's affirmed its full-year 2025 outlook, projecting total sales between $83.5-$84.5 billion, comparable sales growth of 0 to 1%, and diluted EPS of $12.15-$12.40. The company's balance sheet showed $3.05 billion in cash and cash equivalents, with $4.18 billion in current maturities of long-term debt, suggesting near-term debt obligations that will need to be addressed.

The company's commitment to shareholder returns continued with dividend payments of $645 million during the quarter, though share repurchases were notably lower at just $112 million compared to $923 million in the same period last year. This significant reduction in buybacks may indicate a more conservative capital allocation approach in the current uncertain housing market environment.

— Comparable Sales Decreased 1.7%; Diluted EPS of $2.92 —
— Affirms Full Year 2025 Outlook —

MOORESVILLE, N.C., May 21, 2025 /PRNewswire/ -- Lowe's Companies, Inc. (NYSE: LOW) today reported net earnings of $1.6 billion and diluted earnings per share (EPS) of $2.92 for the quarter ended May 2, 2025, compared to diluted EPS of $3.06 in the first quarter of 2024.

Total sales for the quarter were $20.9 billion, compared to $21.4 billion in the prior-year quarter. Comparable sales for the quarter decreased 1.7% as unfavorable weather earlier in the quarter was partially offset by mid-single-digit Pro and online comparable sales growth. 

"Despite near-term uncertainty and housing market headwinds, our team's unwavering focus on exceptional customer service has elevated satisfaction scores and earned Lowe's the #1 ranking in Customer Satisfaction among Home Improvement Retailers* by J.D. Power," said Marvin R. Ellison, Lowe's chairman, president and CEO. "Strategic investments in technology, inviting store environments, and our dedicated associates continue to solidify our commitment to serving our customers and communities. I'd like to extend my appreciation to our front-line associates for the dedication and hard work especially during the busy spring season."

As of May 2, 2025, Lowe's operated 1,750 stores representing 195.3 million square feet of retail selling space.

Capital Allocation
The company remains committed to generating sustainable shareholder value through a disciplined capital program, as reflected in a dividend payment this quarter of $645 million.

Lowe's Business Outlook

The company is affirming its outlook for full year 2025.

Full Year 2025 Outlook

• Total sales of $83.5 to $84.5 billion
• Comparable sales expected to be flat to up +1% as compared to prior year
• Operating income as a percentage of sales (operating margin) of 12.3% to 12.4%
• Net interest expense of approximately $1.3 billion
• Depreciation and Amortization expense of approximately $1.8 billion
• Effective income tax rate of approximately 24.5%
• Diluted earnings per share of approximately $12.15 to $12.40
• Capital expenditures of approximately $2.5 billion

A conference call to discuss first quarter 2025 operating results is scheduled for today, Wednesday, May 21, at 9 a.m. ET. The conference call will be available by webcast and can be accessed by visiting Lowe's website at ir.lowes.com and clicking on Lowe's First Quarter 2025 Earnings Conference Call Webcast. Supplemental slides will be available approximately 15 minutes prior to the start of the conference call. A replay of the call will be archived at ir.lowes.com.

Lowe's Companies, Inc.

Lowe's Companies, Inc. (NYSE: LOW) is a FORTUNE® 50 home improvement company serving approximately 16 million customer transactions a week in the United States. With total fiscal year 2024 sales of more than $83 billion, Lowe's operates over 1,700 home improvement stores and employs approximately 300,000 associates. Based in Mooresville, N.C., Lowe's supports the communities it serves through programs focused on creating safe, affordable housing, improving community spaces, helping to develop the next generation of skilled trade experts and providing disaster relief to communities in need. For more information, visit Lowes.com.

Disclosure Regarding Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  Statements including words such as "believe", "expect", "anticipate", "plan", "desire", "project", "estimate", "intend", "will", "should", "could", "would", "may", "strategy", "potential", "opportunity", "outlook", "scenario", "guidance", and similar expressions are forward-looking statements.  Forward-looking statements involve, among other things, expectations, projections, and assumptions about future financial and operating results, objectives (including objectives related to environmental and social matters), business outlook, priorities, sales growth, shareholder value, capital expenditures, cash flows, the housing market, the home improvement industry, demand for products and services including customer acceptance of new offerings and initiatives, macroeconomic conditions and consumer spending, share repurchases, and Lowe's strategic initiatives, including those relating to acquisitions and dispositions and the impact of such transactions on our strategic and operational plans and financial results.  Such statements involve risks and uncertainties, and we can give no assurance that they will prove to be correct.  Actual results may differ materially from those expressed or implied in such statements.

A wide variety of potential risks, uncertainties, and other factors could materially affect our ability to achieve the results either expressed or implied by these forward-looking statements including, but not limited to, the occurrence of any event or other circumstance that could give rise to the right of one or both of the parties to terminate the merger agreement between Lowe's and ADG, the failure to obtain the requisite approvals or to satisfy the other conditions to the proposed merger on a timely basis or at all, the possibility that the anticipated benefits and synergies of the merger are not realized when expected, or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of changes in general economic conditions, such as volatility and/or lack of liquidity from time to time in U.S. and world financial markets and the consequent reduced availability and/or higher cost of borrowing to Lowe's and its customers, slower rates of growth in real disposable personal income that could affect the rate of growth in consumer spending, inflation and its impacts on discretionary spending and on our costs, shortages, and other disruptions in the labor supply, interest rate and currency fluctuations, home price appreciation or decreasing housing turnover, age of housing stock, the availability of consumer credit and of mortgage financing, trade policy changes or additional tariffs, outbreaks of pandemics, fluctuations in fuel and energy costs, inflation or deflation of commodity prices, natural disasters, geopolitical or armed conflicts, acts of both domestic and international terrorism, and other factors that can negatively affect our customers.

Investors and others should carefully consider the foregoing factors and other uncertainties, risks and potential events including, but not limited to, those described in "Item 1A - Risk Factors" in our most recent Annual Report on Form 10-K and as may be updated from time to time in Item 1A in our quarterly reports on Form 10-Q or other subsequent filings with the SEC. All such forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update these statements other than as required by law.      

LOW-IR

* Lowe's received the highest score in the J.D. Power 2025 U.S. Home Improvement Retailer Satisfaction Study of customers' satisfaction with major home improvement retailers. Visit jdpower.com/awards for more details.

 

Contacts:	Shareholder/Analyst Inquiries:		Media Inquiries:
	Kate Pearlman		Steve Salazar
	704-775-3856		steve.j.salazar@lowes.com
	kate.pearlman@lowes.com

 

Lowe's Companies, Inc. Consolidated Statements of Current Earnings and Accumulated Deficit (Unaudited) In Millions, Except Per Share and Percentage Data
	Three Months Ended
	May 2, 2025				May 3, 2024
Current Earnings	Amount		% Sales		Amount		% Sales
Net sales	$       20,930		100.00		$       21,364		100.00
Cost of sales	13,944		66.62		14,274		66.81
Gross margin	6,986		33.38		7,090		33.19
Expenses:
Selling, general and administrative	4,046		19.33		4,009		18.77
Depreciation and amortization	446		2.13		428		2.00
Operating income	2,494		11.92		2,653		12.42
Interest – net	337		1.61		352		1.65
Pre-tax earnings	2,157		10.31		2,301		10.77
Income tax provision	516		2.47		546		2.56
Net earnings	$         1,641		7.84		$         1,755		8.21
Weighted average common shares outstanding – basic	559				571
Basic earnings per common share (1)	$           2.93				$           3.06
Weighted average common shares outstanding – diluted	560				572
Diluted earnings per common share (1)	$           2.92				$           3.06
Cash dividends per share	$           1.15				$           1.10
Accumulated Deficit
Balance at beginning of period	$     (14,799)				$     (15,637)
Net earnings	1,641				1,755
Cash dividends declared	(645)				(629)
Share repurchases	(30)				(677)
Balance at end of period	$     (13,833)				$     (15,188)

(1)

Under the two-class method, earnings per share is calculated using net earnings allocable to common shares, which is derived by reducing net earnings by the earnings allocable to participating securities. Net earnings allocable to common shares used in the basic and diluted earnings per share calculation were $1,636 million for the three months ended May 2, 2025, and $1,750 million for the three months ended May 3, 2024.

 

Lowe's Companies, Inc. Consolidated Statements of Comprehensive Income (Unaudited) In Millions, Except Percentage Data
	Three Months Ended
	May 2, 2025				May 3, 2024
	Amount		% Sales		Amount		% Sales
Net earnings	$         1,641		7.84		$         1,755		8.21
Cash flow hedges – net of tax	(3)		(0.01)		(3)		(0.02)
Other	—		—		(1)		—
Other comprehensive loss	(3)		(0.01)		(4)		(0.02)
Comprehensive income	$         1,638		7.83		$         1,751		8.19

 

Lowe's Companies, Inc. Consolidated Balance Sheets (Unaudited) In Millions, Except Par Value Data
		May 2, 2025		May 3, 2024
Assets
Current assets:
Cash and cash equivalents		$                        3,054		$                        3,237
Short-term investments		368		264
Merchandise inventory – net		18,335		18,224
Other current assets		918		1,025
Total current assets		22,675		22,750
Property, less accumulated depreciation		17,636		17,531
Operating lease right-of-use assets		3,799		3,829
Long-term investments		300		306
Deferred income taxes – net		118		115
Other assets		844		834
Total assets		$                      45,372		$                      45,365
Liabilities and shareholders' deficit
Current liabilities:
Current maturities of long-term debt		4,183		1,294
Current operating lease liabilities		562		552
Accounts payable		11,235		11,737
Accrued compensation and employee benefits		853		870
Deferred revenue		1,500		1,409
Other current liabilities		4,055		3,644
Total current liabilities		22,388		19,506
Long-term debt, excluding current maturities		30,541		34,622
Noncurrent operating lease liabilities		3,669		3,759
Deferred revenue – Lowe's protection plans		1,266		1,225
Other liabilities		762		859
Total liabilities		58,626		59,971
Shareholders' deficit:
Preferred stock, $5 par value: Authorized – 5.0 million shares; Issued and outstanding – none		—		—
Common stock, $0.50 par value: Authorized – 5.6 billion shares; Issued and outstanding – 560 million and 572 million, respectively		280		286
Accumulated deficit		(13,833)		(15,188)
Accumulated other comprehensive income		286		296
Total shareholders' deficit		(13,254)		(14,606)
Total liabilities and shareholders' deficit		$                      45,372		$                      45,365

 

Lowe's Companies, Inc. Consolidated Statements of Cash Flows (Unaudited) In Millions
	Three Months Ended
	May 2, 2025		May 3, 2024
Cash flows from operating activities:
Net earnings	$                        1,641		$                        1,755
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	507		486
Noncash lease expense	131		131
Deferred income taxes	126		135
(Gain)/loss on property and other assets – net	20		(7)
Share-based payment expense	58		55
Changes in operating assets and liabilities:
Merchandise inventory – net	(926)		(1,330)
Other operating assets	(106)		(86)
Accounts payable	1,945		3,033
Other operating liabilities	(17)		90
Net cash provided by operating activities	3,379		4,262
Cash flows from investing activities:
Purchases of investments	(391)		(277)
Proceeds from sale/maturity of investments	375		266
Capital expenditures	(518)		(382)
Proceeds from sale of property and other long-term assets	2		15
Other – net	(1)		—
Net cash used in investing activities	(533)		(378)
Cash flows from financing activities:
Repayment of debt	(778)		(22)
Proceeds from issuance of common stock under share-based payment plans	2		15
Cash dividend payments	(645)		(633)
Repurchases of common stock	(112)		(923)
Other – net	(20)		(5)
Net cash used in financing activities	(1,553)		(1,568)
Net increase in cash and cash equivalents	1,293		2,316
Cash and cash equivalents, beginning of period	1,761		921
Cash and cash equivalents, end of period	$                        3,054		$                        3,237

 

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SOURCE Lowe's Companies, Inc.

FAQ

What were Lowe's (LOW) Q1 2025 earnings per share?

Lowe's reported diluted earnings per share (EPS) of $2.92 for Q1 2025, compared to $3.06 in Q1 2024.

What is Lowe's (LOW) sales guidance for full year 2025?

Lowe's expects total sales of $83.5 to $84.5 billion with comparable sales growth of 0% to 1% for full year 2025.

How much did Lowe's (LOW) comparable sales decline in Q1 2025?

Lowe's comparable sales decreased 1.7% in Q1 2025, primarily due to unfavorable weather early in the quarter.

What is Lowe's (LOW) projected EPS for full year 2025?

Lowe's projects diluted earnings per share of $12.15 to $12.40 for full year 2025.

How much dividend did Lowe's (LOW) pay in Q1 2025?

Lowe's paid $645 million in dividends during the first quarter of 2025.