Lowe’s earnings, sales top estimates amid ‘challenging’ home improvement market
Lowe’s Companies Inc. reported better-than-expected top- and bottom-line results for its fourth quarter — including its first same-store sales increase in two years — even as high interest rates continue to take a toll on home buying and discretionary home spending.
The home improvement giant's net income rose to $1.13 billion, or $1.99 a share, in the quarter ended Jan. 31, from $1.02 billion, or $1.77 a share, in the year-ago period. Adjusted earnings per share were $1.93, ahead of analysts' estimates of $1.84.
Net sales slipped 0.3% to $18.55 billion, ahead of Street estimates. Comparable sales edged up 0.2%. Analysts had expected a decline of 1.8%. It was the first increase in comp sales since the quarter that ended in October 2022.
Lowe’s said its comp rise was driven by high-single-digit Pro (professional customers) and online comparable sales, strong holiday performance and rebuilding efforts in the wake of recent hurricanes, partially offset by continued near-term pressure in do-it-yourself discretionary spending.
“Our results this quarter were once again better than expected, as we continue to gain traction with our Total Home strategic initiatives,” said CEO Marvin Ellison. “We remain confident in the long-term strength of the home improvement industry, and we are equally confident in our strategy to capitalize on the expected recovery.”
Ellison added the chain was awarding $80 million in discretionary bonuses to its frontline employees “in recognition of their hard work and dedication to delivering excellent customer service."
On the earnings call, Ellison said Lowe's is still confronted with “a challenging home improvement market.” High borrowing rates have kept many folks out of the home buying market.
[READ MORE: Lowe's 2025 growth plans include store expansion]
Similar to Walmart, TJX Cos. and other retailers, Lowe’s reported full-year guidance that was weaker than expected.
For 2025, Lowe’s expects earnings per share to range between $12.15 and $12.40, compared to analysts’ estimates of $12.46. It expects same-store sales to be flat to up 1%. Analysts were expecting an increase of 1.1%.
Full-year sales are expected to range from $83.5 billion to $84.5 billion, below current expectations of $84.56 billion.
