Lowe's CEO Calls Out Near-Term Housing Market Challenges But Holds The Line On Outlook

Lowe’s Companies, Inc. LOW on Wednesday reported mixed results for the first quarter of fiscal 2025.

The company posted adjusted earnings of $2.92 per share, which beat the analyst consensus estimate of $2.89.

Revenue for the quarter was down 2% year over year at $20.93 billion, which missed the analyst consensus estimate of $20.94 billion.

Comparable sales fell 1.7%, with early-quarter weather headwinds partially offset by mid-single-digit growth in Pro and online sales.

Also Read: Lowe’s Lowdown? Analyst Sees Weaker Sales Than Consensus, Cites Weather Woes

Gross margin expanded 19 basis points to 33.4% while operating income declined to $2.49 billion from $2.65 billion last year. Operating margin narrowed by 50 basis points to 11.9%.

As of May 2, 2025, Lowe’s operated 1,750 stores, totaling approximately 195.3 million square feet of retail selling space.

“Despite near-term uncertainty and housing market headwinds, our team’s unwavering focus on exceptional customer service has elevated satisfaction scores and earned Lowe’s the No. 1 ranking in Customer Satisfaction among Home Improvement Retailers by J.D. Power,” said Marvin R. Ellison, Lowe’s chairman, president, and CEO.

“Strategic investments in technology, inviting store environments, and our dedicated associates continue to solidify our commitment to serving our customers and communities,” Ellison added.

The company reported operating cash flow of $3.38 billion for the quarter, down from $4.26 billion a year earlier.

The company reiterated its focus on disciplined capital allocation, highlighted by a $645 million dividend paid this quarter.

Lowe’s acknowledged tariffs as a potential risk factor but did not provide specific guidance on their impact.

Lowe’s forecasts 2025 EPS of $12.15–$12.40 versus the $12.23 consensus estimate. Total sales are projected between $83.5 billion and $84.5 billion, compared with analysts’ expectations of $84.31 billion.

Lowe’s expects an operating margin of 12.3% to 12.4% and plans to spend approximately $2.5 billion on capital expenditures.

Price Action: LOW shares are trading lower by 0.37% to $230.41 at last check Wednesday.

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