Lowe’s Q1 earnings top Street; affirms full-year guidance
Lowe's Companies Inc. reported better-than-expected first-quarter earnings and stuck by its full-year outlook despite “near-term uncertainty and housing market headwinds."
Echoing recent comments by Target and other retailers, the home improvement giant is working with suppliers and doing its best to minimize the impact of tariffs on customers, Lowe’s president and CEO Marvin Ellison said on the company’s earnings call.
“Our global sourcing team has identified exciting diversification opportunities in the U.S. and around the globe that we’re actively pursuing,” Ellison told analysts.
Lowe’s net income fell to $1.64 billion, or $2.92 per share, for the quarter ended May 2, down from $1.76 billion, or $3.06 per share, in the year-ago quarter. Analysts had expected earnings of $2.89 per share.
Revenue fell to $20.93 billion, in line with estimates, from $21.36 billion. Comparable sales for the quarter decreased 1.7% as unfavorable weather earlier in the quarter was partially offset by mid-single-digit growth online and by home pro customers.
On the earnings call, Ellison said that sales trends improved as the weather got better and customers turned to the company for spring items, including garden supplies.
“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," Ellison stated in the earnings release. "Strategic investments in technology, inviting store environments, and our dedicated associates continue to solidify our commitment to serving our customers and communities.”
[READ MORE: EXCLUSIVE Q&A: Lowe’s provides AI aid to shoppers and associates]
The company affirmed its outlook for full year 2025. It expects full-year total sales to range from $83.5 billion to $84.5 billion and earnings per share to range from approximately $12.15 to $12.40. Comparable sales are expected to be flat to up 1%.
As of May 2, 2025, Lowe's operated 1,750 stores.
