Lowe’s Companies Inc. reported stronger-than-expected first-quarter earnings and maintained its full-year outlook, signaling confidence in its strategic direction amid challenging market conditions and ongoing tariff uncertainties.
For the fiscal quarter ending May 2, the home improvement retailer posted earnings per share of $2.92, surpassing analysts’ consensus estimate of $2.88. Revenue came in slightly below expectations at $20.93 billion, just under the projected $20.94 billion and down from $21.36 billion a year earlier.
Comparable sales fell 1.7% year over year, impacted by unfavorable weather early in the quarter. However, the decline was narrower than anticipated and partially offset by gains in e-commerce and professional customer segments. Sales to home professionals grew by mid single digits, driven by investments in merchandise, logistics, and a loyalty program tailored to that customer base.
Lowe’s CEO Marvin Ellison emphasized that strategic investments in technology, stores, and customer service helped the company navigate short-term economic and housing market uncertainty.
“Our global sourcing team has identified exciting diversification opportunities,” Ellison noted, adding that only about 20% of Lowe’s sourcing now comes from China, reducing exposure to tariff risk.
Despite challenges such as high interest rates, a cooling housing market, and fluctuating consumer sentiment, Lowe’s reaffirmed its full-year guidance. The company expects total sales between $83.5 billion and $84.5 billion, and comparable sales ranging from flat to 1% growth. Projected full-year earnings per share are between $12.15 and $12.40.
Lowe’s continued emphasis on the professional contractor market, a segment less impacted by economic volatility than the do-it-yourself customer base, is a key part of its growth strategy. In April, the company announced a $1.3 billion acquisition of Artisan Design Group, which provides design and installation services for homebuilders and property managers.
Weather played a notable role in quarterly performance. Comparable sales dropped 5.4% in February but rebounded with a 1.7% gain in March before slipping again by 2.6% in April. CFO Brandon Sink pointed to the timing of Easter, which fell in March last year and in April this year, as a factor in the fluctuations.
The earnings report comes as the broader home improvement sector faces increasing scrutiny due to tariff volatility and its impact on supply chains and consumer prices. Lowe’s and rival Home Depot have both pursued strategies to diversify sourcing and strengthen their position in the professional segment to mitigate risk.
Following the earnings release, Lowe’s stock rose in premarket trading and was on track to open at a two-and-a-half-month high. The company’s shares have declined 6.3% year to date, underperforming both Home Depot and the broader S&P 500.
CNBC, Bloomberg, and Market Watch contributed to this report.
