Despite a sluggish housing market, Lowe's reported quarterly revenue and profit on Wednesday that surpassed Wall Street expectations, with quarterly sales increasing more than 10% year over year.
The home improvement retailer projected total sales for the fiscal year to be between $92 billion and $94 billion, representing growth of approximately 7% to 9% compared to the previous year. Full-year adjusted earnings per share are expected to range from $12.25 to $12.75. Comparable store sales, excluding one-time items, are forecast to be flat or increase by up to 2%.
CEO Marvin Ellison stated in a press release that while high mortgage rates and slowing real estate sales present industry-wide challenges, the company's strategy continues to attract both DIY customers and professional home improvement clients. "Although the macro housing market remains under pressure, we are focused on the factors within our control, including our ongoing productivity improvement initiatives. We are confident in our ability to continue gaining market share regardless of the macroeconomic environment," Ellison said.
According to data from the London Stock Exchange Group, Lowe's pre-market stock price declined as its full-year EPS guidance of $12.25–$12.75 fell below the analyst consensus estimate of $12.95.
The following compares Lowe's fiscal fourth-quarter results, ended January 31, with Wall Street expectations:
Adjusted EPS: Actual $1.98 vs. Expected $1.94 Revenue: Actual $20.58 billion vs. Expected $20.34 billion Quarterly net income fell to $999 million, or $1.78 per share, from $1.13 billion, or $1.99 per share, in the same period last year. Revenue increased from $18.55 billion reported a year earlier. Comparable store sales grew by 1.3%, significantly exceeding the StreetAccount forecast of 0.2%. The company attributed the growth to expansion among its Pro customer base, online sales, home installation services, and a strong holiday season performance.
Although competitor Home Depot also exceeded expectations on Tuesday, it maintained a conservative full-year outlook, reflecting that high borrowing costs, elevated home prices, and economic concerns continue to suppress U.S. home improvement demand.
Similar to Home Depot, Lowe's is navigating the same industry headwinds. Both companies are expanding their businesses targeting contractors and professional clients—typically a more stable revenue source—through acquisitions. Last year, Lowe's acquired Foundation Building Materials, a distributor serving large residential and commercial customers, for approximately $8.8 billion, and purchased Artisan Design Group, which provides design and installation services for builders and property owners, for about $1.33 billion.
To attract consumers delaying home purchases, Lowe's has launched a third-party online marketplace to broaden its product assortment, leveraged influencers to boost social media presence, and relaunched its kids' workshop program to engage younger families.
As of Tuesday's market close, Lowe's stock had risen nearly 16% year-to-date, significantly outperforming the S&P 500's gain of about 1% over the same period. Over the past year, its shares have climbed approximately 15%, largely in line with the S&P 500's 16% increase.