10-QPeriod: Q2 FY2026

LOWES COMPANIES INC Quarterly Report for Q2 Ended May 2, 2025

Filed May 29, 2025For Securities:LOW

Summary

Lowe's Companies, Inc. reported a 2.0% decrease in net sales for the first quarter of fiscal year 2025, totaling $20.9 billion, down from $21.4 billion in the prior year period. This decline was attributed to a 1.7% decrease in comparable sales, driven by a 3.8% drop in customer transactions, although partially offset by a 2.1% increase in average ticket price. Net earnings fell to $1.6 billion from $1.8 billion, with diluted earnings per share decreasing to $2.92 from $3.06 year-over-year. The company cited ongoing challenges in the housing market, pressure on DIY discretionary spending, and unfavorable early spring weather as factors impacting performance. Despite these headwinds, Lowe's saw continued growth in its Pro and online sales, reflecting the progress of its "Total Home" strategy. Investments in technology, including the relaunch of the My Lowe's Pro Rewards program and the introduction of an AI-powered virtual advisor, "MyLowe's", are intended to enhance customer experience and drive future growth.

Financial Highlights

49 data points
Beta

Revenue

$20.93B

33.4% Gross Margin

Net Income

$1.64B

7.8% Net Margin

EPS (Diluted)

$2.92

Total Assets

$45.37B

Cash & Equivalents

$3.05B

Free Cash Flow

$2.86B

Financial Statements
Beta
Revenue$20.93B
Cost of Revenue$13.94B
Gross Profit$6.99B
SG&A Expenses$4.05B
Operating Income$2.49B
Net Income$1.64B
EPS (Basic)$2.93
EPS (Diluted)$2.92
Shares Outstanding (Basic)559.00M
Shares Outstanding (Diluted)560.00M

Key Highlights

  • 1Net sales decreased by 2.0% to $20.9 billion compared to $21.4 billion in the prior year, with comparable sales down 1.7%.
  • 2Net earnings decreased to $1.6 billion from $1.8 billion, resulting in diluted EPS of $2.92, down from $3.06.
  • 3The company experienced a 3.8% decrease in comparable customer transactions, partially offset by a 2.1% increase in comparable average ticket.
  • 4Gross margin as a percentage of sales improved by 19 basis points, driven by productivity initiatives and shrink/credit revenue improvements.
  • 5Selling, General, and Administrative (SG&A) expenses deleveraged by 56 basis points as a percentage of sales, primarily due to lower sales volume and increased wage and healthcare costs.
  • 6Lowe's is actively investing in its Pro customer segment with the relaunch of My Lowe's Pro Rewards and developing AI-driven customer tools like MyLowe's.
  • 7Cash flow from operations decreased to $3.4 billion from $4.2 billion in the prior year, impacted by working capital changes and lower net earnings.

Frequently Asked Questions

The decrease in net sales and earnings is primarily attributed to broader market challenges including a softening housing market, reduced DIY big-ticket discretionary spending, and unfavorable weather conditions early in the quarter. These factors led to a decline in comparable customer transactions, which outweighed the increase in average ticket price.

Lowe's is focusing on its 'Total Home' strategy, emphasizing growth in its Pro customer segment and online sales. Initiatives include the relaunch of the My Lowe's Pro Rewards loyalty program to better serve professional customers and the introduction of AI-powered tools like 'MyLowe's' to enhance the customer experience and provide project support. Investments in technology are aimed at improving online engagement and driving overall sales.

Lowe's maintains a strong liquidity position with $3.1 billion in cash and cash equivalents and $4.0 billion in undrawn capacity on its revolving credit facilities. The company continues to return cash to shareholders through dividends ($645 million paid) and share repurchases. For fiscal year 2025, capital expenditure guidance is approximately $2.5 billion, focused on strategic initiatives and store improvements.

The report notes that Lowe's entered into a definitive agreement on April 9, 2025, to acquire Artisan Design Group (ADG) for $1.325 billion. This acquisition is expected to expand the company's Pro customer offering into new distribution channels and is anticipated to close in the second quarter of fiscal year 2025.