Quick Summary
- Lowe’s delivered Q1 adjusted EPS of $3.03, surpassing the Street estimate of $2.97, while revenue reached $23.08B versus expectations
- Comparable store sales climbed 0.6%, driven by robust 15.5% e-commerce growth and solid performance in appliances, Pro segment, and home services
- Full-year adjusted EPS outlook of $12.25–$12.75 centers at $12.50, trailing the Street consensus of $12.59
- LOW shares declined approximately 2.9% following the report, as investors prioritized the disappointing guidance over the quarterly beat
- CEO Marvin Ellison acknowledged a “challenging housing macro” while maintaining commitment to the company’s Total Home initiative
Lowe’s delivered first-quarter results that exceeded Wall Street forecasts across key metrics. Yet shares moved lower — a reaction driven entirely by forward-looking guidance.
LOW declined roughly 2.9% following the earnings release, trading around $213 in after-hours activity.
The home improvement retailer posted adjusted diluted EPS of $3.03 for the period ending May 1, outpacing analyst projections of $2.97. Total revenue reached $23.08 billion, marking a 10.4% year-over-year increase and exceeding the Street’s $22.97 billion expectation.
Comparable store sales advanced 0.6% during the quarter. Digital channels showed particular strength, with online sales surging 15.5%. The appliance category, home services division, and Pro business all delivered positive contributions.
GAAP net income totaled $1.63 billion, translating to $2.90 per diluted share — virtually unchanged from the $1.64 billion, or $2.92 per share, recorded in the prior-year quarter.
The quarter absorbed $96 million in pre-tax charges related to the company’s acquisitions of Foundation Building Materials and Artisan Design Group.
CEO Marvin Ellison characterized the performance as “a solid start to the year” and highlighted the company’s “fourth consecutive quarter of positive comp sales.”
He was transparent about headwinds: “In spite of a challenging housing macro, we remain focused on advancing our Total Home strategy.”
Forward Outlook Disappointed Investors
The market’s negative reaction centered on guidance. Lowe’s projected full-year adjusted EPS in a range of $12.25 to $12.75 — with a midpoint of $12.50 that falls short of the $12.59 analyst consensus.
Full-year revenue projections of $92 billion to $94 billion likewise trailed the Street’s $93.07 billion estimate.
Management anticipates comparable sales will land in a flat to up 2% range for fiscal 2025 — a measured outlook reflecting persistent consumer uncertainty and elevated gasoline prices.
Competitor Home Depot Also Updated Outlook This Week
Notably, Home Depot released results earlier in the week and similarly exceeded forecasts. Home Depot maintained its full-year targets and noted that its core customer base continues showing resilience. The company also disclosed it has submitted applications for tariff reimbursements that could mitigate rising fuel expenses.
In February, Lowe’s eliminated approximately 600 positions in corporate and support functions, stating the move would enable greater investment in store-level personnel.
Ellison’s “Total Home strategy” — designed to simultaneously serve DIY shoppers and professional contractors — remains the cornerstone of the company’s expansion plan.
Both the Pro segment and digital platforms continue delivering strong results, with each demonstrating positive momentum throughout Q1.
Lowe’s maintained its full-year total sales guidance of $92 billion to $94 billion, which represents 7% to 9% growth versus the prior fiscal year.
On an adjusted basis, the company projects full-year EPS will fall within a $12.25 to $12.75 range.
The first-quarter performance extended Lowe’s streak to four consecutive quarters of positive comparable sales — a trend management aims to sustain through the critical spring selling period and into subsequent quarters.
