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LOWES COMPANIES INC 8-K/A Report, Financial Results (May 21, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed May 21, 2025
Period End
May 21, 2025
Security
LOW
In the record · 2016–202610-K1110-Q328-K126

LOW filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 126 current reports (8-K) between 2016 and 2026.

  1. Impairment8-K · Nov ’18Nov ’18
  2. Leadership change8-K · Oct ’20Oct ’20
  3. Material agreement8-K · Sep ’22Sep ’22
  4. Leadership change8-K · Sep ’26Sep ’26

01—Abstract

Summary

Summary of the 8-K/A filed May 21, 2025. Cited figures are marked; the original filing is the authoritative source.

Lowe's (LOW) reported first-quarter 2025 results for the quarter ended May 2, 2025, with comparable sales down 1.7%, net sales of $20.9 billiona (down 2.0% from $21.4 billion), and diluted EPS of $2.92 versus $3.06 a year earlier, a decline of 4.6%.

Management attributed the comp decline mainly to unfavorable weather early in the quarter, partly offset by mid-single-digit growth in Pro and online sales. Gross margin expanded 19 basis points to 33.4%, but operating margin contracted 50 basis points to 11.9% as SG&A deleveraged, and net earnings fell to $1.64 billionb from $1.76 billion. Management also cited a Easter timing shift that moved about 250 basis points of sales from April into March.

The company affirmed its full-year 2025 outlook: total sales of $83.5 to $84.5 billionc, comparable sales flat to up 1%, operating margin of 12.3% to 12.4%, and diluted EPS of approximately $12.15 to $12.40. Cash generation weakened in the quarter, with operating cash flow of $3.4 billion versus $4.3 billion a year earlier, while capital expenditures rose to $518 million from $382 million. Lowe's returned $645 million through dividends and repurchased $112 million of stock in cash terms, and its shareholders' deficit remains negative at $(13.3) billion, reflecting long-term financing of buybacks.

Total debt, including current maturities, was about $34.7 billiond. This document is Amendment No. 1 on Form 8-K/A. It was filed solely to correct a formatting error in the press release's consolidated balance sheet, specifically the 'Capital in excess of par value' line ($13 million as of May 2, 2025).

No other changes were made, so the financial results themselves are unchanged. The filing also references a pending merger agreement with ADG, with forward-looking risk language covering its completion and integration, which investors should monitor.

02—Key points

Key Highlights

  1. Comparable sales fell 1.7%, with unfavorable early-quarter weather partly offset by mid-single-digit growth in Pro and online sales.
  2. Diluted EPS was $2.92, down from $3.06 (-4.6%), and net earnings declined to $1.64 billion from $1.76 billion.
  3. Gross margin rose 19 basis points to 33.4%, but operating margin fell 50 basis points to 11.9% due to SG&A deleverage.
  4. Full-year 2025 guidance was affirmed, including EPS of $12.15 to $12.40 and operating margin of 12.3% to 12.4%.
  5. Operating cash flow dropped to $3.4 billion from $4.3 billion, and capital expenditures rose to $518 million from $382 million.
  6. Lowe's paid $645 million in dividends and repurchased $112 million of stock; diluted share count fell to 560 million from 572 million.
  7. This 8-K/A only corrects a formatting error (capital in excess of par value, $13 million) in the balance sheet, with no change to reported results.

03—Questions

Frequently Asked Questions

  1. Why did Lowe's earnings decline in the first quarter of 2025?

    Comparable sales fell 1.7% because of unfavorable weather early in the quarter, and total sales dropped about 2% to $20.9 billion. Operating income fell to $2.49 billion from $2.65 billion because SG&A grew faster than sales, even though gross margin improved slightly. The Easter timing shift also moved some sales from April into March.

  2. Did Lowe's change its full-year 2025 outlook?

    No. Lowe's affirmed its full-year 2025 guidance: total sales of $83.5 to $84.5 billion, comparable sales flat to up 1%, operating margin of 12.3% to 12.4%, net interest expense of about $1.3 billion, and diluted EPS of approximately $12.15 to $12.40.

  3. Why did the 8-K/A amendment get filed, and does it change the results?

    The amendment was filed only to correct an inadvertent formatting error in the consolidated balance sheet of the press release (Exhibit 99.1), specifically the 'Capital in excess of par value' line of $13 million as of May 2, 2025. It does not change any reported financial results, and no other exhibit changes were made.

  4. How is Lowe's cash flow and capital allocation trending?

    Operating cash flow was $3.4 billion, down from $4.3 billion, mainly because of lower accounts payable inflows. Capital expenditures rose to $518 million from $382 million. Lowe's returned $645 million through dividends and repurchased $112 million of stock, down from $923 million a year earlier. Its shareholders' deficit remains at $(13.3) billion, and total debt is about $34.7 billion.

04—Continue

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