Key Takeaways
- The home improvement retailer delivered Q1 adjusted EPS of $3.03, surpassing Wall Street’s $2.97 projection, while revenue reached $23.08B versus expectations
- Comp sales increased 0.6% year-over-year, driven by robust 15.5% digital channel growth and solid performance in appliances, professional customers, and installation services
- The company’s fiscal 2025 adjusted EPS outlook of $12.25–$12.75 centers at $12.50, trailing Street expectations of $12.59
- Shares of LOW declined approximately 2.9% following the quarterly report, as the forward-looking forecast overshadowed operational results
- Chief Executive Marvin Ellison acknowledged persistent headwinds in the housing market while maintaining commitment to the firm’s Total Home growth initiative
Lowe’s delivered impressive first-quarter results that exceeded analyst projections across key metrics. Yet investors sent shares lower — focusing squarely on what comes next.
Shares of LOW declined roughly 2.9% in after-hours trading following the announcement, hovering around $213.
The retailer posted adjusted diluted earnings per share of $3.03 for its fiscal quarter ending May 1, exceeding the Street’s $2.97 projection. Total revenue reached $23.08 billion, marking a 10.4% year-over-year increase and beating the $22.97 billion consensus forecast.
Comparable store sales advanced 0.6% during the period. Digital sales outperformed significantly, surging 15.5%. Strength also emerged across appliances, installation services, and the professional contractor segment.
On a GAAP basis, net earnings totaled $1.63 billion, translating to $2.90 per diluted share — remaining relatively unchanged from the prior year’s $1.64 billion, or $2.92 per share.
The period’s results incorporated $96 million in pre-tax charges associated with recent acquisitions, including Foundation Building Materials and Artisan Design Group.
Chief Executive Marvin Ellison characterized the performance as “a solid start to the year,” highlighting the company’s “fourth consecutive quarter of positive comp sales.”
He offered candid remarks about current conditions: “In spite of a challenging housing macro, we remain focused on advancing our Total Home strategy.”
Forward Outlook Trails Analyst Projections
Investor concerns centered on the company’s forward guidance. Management projects full-year adjusted earnings per share between $12.25 and $12.75 — yielding a midpoint of $12.50 that falls short of the $12.59 analyst consensus.
Fiscal 2025 revenue guidance spanning $92 billion to $94 billion also landed modestly below the Street’s $93.07 billion forecast.
The retailer anticipates comparable sales ranging from flat to up 2% for the full year — reflecting ongoing consumer uncertainty and elevated gasoline prices.
Competitor Home Depot Also Updated Investors This Week
Notably, Home Depot released results earlier in the week, similarly exceeding expectations. The rival home improvement chain maintained its annual guidance and emphasized continued consumer resilience among its core customer base. Management disclosed filing for tariff relief that could mitigate elevated fuel expenses.
Earlier this year in February, Lowe’s eliminated approximately 600 positions across corporate and support functions, redirecting investment toward frontline store personnel.
Ellison’s Total Home strategy — designed to capture both do-it-yourself consumers and professional contractors — remains central to the company’s expansion plans.
The professional and digital segments continue delivering strong results, with both channels demonstrating positive momentum throughout the first quarter.
Management reiterated its full-year sales projection of $92 billion to $94 billion, representing 7% to 9% growth compared to fiscal 2024.
Adjusted earnings per share for the full year remain targeted between $12.25 and $12.75.
The first-quarter performance marked the fourth straight period of positive comparable sales for the retailer — a trend management aims to sustain through the critical spring selling season and subsequent quarters.
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