A Lowe’s retailer in Harmony, California, US, on Monday, Nov. 17, 2025.
David Paul Morris | Bloomberg | Getty Pictures
Lowe’s topped Wall Avenue’s quarterly income and earnings expectations on Wednesday, because the retailer’s gross sales grew greater than 10% yr over yr whilst the house enchancment market’s struggles confirmed few indicators of ending.
On Lowe’s earnings name, CEO Marvin Ellison mentioned the backdrop stays difficult for dwelling enchancment attributable to a mixture of larger inflation, financial uncertainty and elevated mortgage charges.
“A persistent lock-in impact stays in place, preserving housing turnover and new dwelling begins underneath stress, main us to anticipate enchancment in each the housing and residential enchancment markets to be gradual,” he mentioned.
Nonetheless, he mentioned the corporate’s technique is resonating with its do-it-yourself prospects and residential professionals, because it provide extra versatile supply choices, higher digital experiences and extra set up companies.
And, he added, its latest acquisitions of two dwelling professional-focused corporations means Lowe’s is “effectively positioned to take part within the anticipated restoration in housing as we begin the yr.”
The corporate mentioned it expects complete gross sales for the complete present fiscal yr to vary between $92 billion and $94 billion, which might be a roughly 7% to 9% enhance over the prior yr. It mentioned it tasks adjusted earnings per share to be between $12.25 and $12.75 for the complete yr. Lowe’s mentioned it expects comparable gross sales, a metric that takes out one-time elements, to be roughly flat to up 2%.
Shares of Lowe’s fell greater than 3% in early buying and selling on Wednesday as the corporate’s earnings per share projections for the yr fell wanting analysts’ consensus expectations of $12.95, in accordance with LSEG.
This is what Lowe’s reported for the fiscal fourth quarter in contrast with Wall Avenue’s estimates, in accordance with a survey of analysts by LSEG:
- Earnings per share: $1.98 adjusted vs. $1.94 anticipated
- Income: $20.58 billion vs. $20.34 billion anticipated
Lowe’s web revenue for the three-month interval that ended Jan. 30 dropped to $999 million, or $1.78 per share, from $1.13 billion, or $1.99 per share, within the year-ago quarter. Excluding one-time elements, together with bills related to latest acquisitions, Lowe’s reported adjusted earnings per share of $1.98.
Income rose from $18.55 billion within the year-ago interval.
Comparable gross sales for the quarter climbed 1.3%, larger than the 0.2% that analysts had been anticipating, in accordance with StreetAccount. The corporate mentioned in a information launch that development was pushed by its beneficial properties with dwelling professionals, on-line gross sales and residential companies, together with a powerful vacation season.
Lowe’s posted development in 9 of its 14 merchandising classes, mentioned Invoice Boltz, government vice chairman of merchandising, on the corporate’s earnings name. Among the classes and objects that offered effectively are extra intently tied to execs, comparable to gross sales of plumbing provides like water heaters and millwork for home windows and doorways, Boltz mentioned. But the corporate additionally noticed power with paint gross sales, as prospects purchased inside and exterior paint, primer and stains, he mentioned.
Pinched by a tricky housing backdrop
Lowe’s outcomes reinforce the housing market’s struggles a day after rival House Depot mentioned it’s nonetheless seeing comparable reluctance to tackle massive housing tasks.
House Depot on Tuesday beat Wall Avenue’s earnings and income expectations, however caught by conservative full-year steering. Its quarterly outcomes mirrored that dwelling enchancment demand stays tepid, as U.S. customers proceed to place off massive tasks due to excessive borrowing prices and housing costs in addition to financial issues.
Like House Depot, Lowe’s has felt pinched by a harder backdrop for the business. Each have acquired corporations that cater to contractors and different professionals, which are typically a steadier supply of enterprise.
Final yr, Lowe’s acquired Basis Constructing Supplies, a distributor of drywall, insulation and different inside constructing merchandise for big residential and business professionals, for about $8.8 billion. It additionally purchased Artisan Design Group, which offers design companies and set up of flooring, cupboards and counter tops for homebuilders and property managers, for about $1.33 billion.
Lowe’s has additionally made its personal strikes to achieve prospects who’re delaying dwelling purchases, comparable to launching a third-party market to increase its mixture of merchandise, tapping influencers to lift its visibility on social media and reaching out to younger households by relaunching its children’ program.
But Lowe’s and House Depot are nonetheless ready for indicators that U.S. customers are prepared to leap again in to purchasing, promoting and fixing up their properties at a extra typical fee.
Ellison mentioned on the corporate’s earnings name that Lowe’s nonetheless expects “comparatively flat” demand within the dwelling enchancment business this yr. Its personal full-year gross sales forecast is predicated on expectations that it’ll outperform the market, he mentioned.
He mentioned the corporate is intently watching if there is a shift towards extra pricier discretionary purchases.
“After we begin to see a sustained variety of discretionary big-ticket purchases from the DIY [do-it-yourself shopper], that is going to present us a sign that the buyer is getting more healthy they usually’re extra assured in making these purchases,” he mentioned.
As of Tuesday’s shut, Lowe’s shares are up almost 16% yr so far, surpassing the S&P 500’s roughly 1% beneficial properties throughout the identical interval. Its inventory has risen about 15% over the previous yr, virtually matching the S&P 500’s roughly 16% beneficial properties over that point.
