Monday, November 17, 2025, at a Lowe’s store in Concord, California, USA.
David Paul Morris | Bloomberg | Getty Images
lowe’s The company beat Wall Street’s quarterly sales and earnings estimates on Wednesday as the retailer’s sales rose more than 10% from a year earlier, even as the home improvement market’s struggles show little sign of ending.
At Lowe’s earnings conference, CEO Marvin Ellison said the combination of rising inflation, economic uncertainty and rising mortgage rates continues to make conditions difficult for home renovations.
“The lock-in effect remains strong, putting pressure on housing turnover and new housing starts, and we expect gradual improvement in both the housing market and the home renovation market,” he said.
Still, he said the company’s strategy resonates with do-it-yourself customers and home professionals because it offers more flexible delivery options, a better digital experience and more installation services.
He added that recent acquisitions of two specialized housing companies mean Lowe’s is “well positioned to participate in the anticipated housing market recovery at the beginning of the year.”
The company said it expects sales for the entire current fiscal year to be in the range of $92 billion to $94 billion, which would be an increase of about 7% to 9% compared to the previous year. The company expects full-year adjusted earnings per share to be between $12.25 and $12.75. Lowe’s said it expects comparable sales, a measure that excludes one-time factors, to be about flat to up 2%.
Lowe’s stock price fell more than 3% in early trading Wednesday after the company’s earnings per share forecast for this year fell short of analysts’ consensus estimate of $12.95, according to LSEG.
Here’s how Lowe’s reported for its fiscal fourth quarter compared to Wall Street expectations, according to a survey of analysts by LSEG.
Earnings per share: $1.98 adjusted vs. $1.94 expected Sales: $20.58 billion vs. $20.34 billion expected
Lowe’s net income for the three months ended Jan. 30 fell to $999 million, or $1.78 per share, from $1.13 billion, or $1.99 per share, a year earlier. Excluding one-time factors such as charges related to recent acquisitions, Lowe’s reported adjusted earnings per share of $1.98.
Sales increased from $18.55 billion in the same period last year.
According to Street Accounts, sales rose 1.3% in the quarter, beating analysts’ expectations for a 0.2% increase. Growth was driven by a strong holiday season, as well as growth in home professionals, online sales and home services, the company said in a news release.
Bill Boltz, executive vice president of merchandising, said on the company’s earnings call that Lowe’s recorded growth in nine of its 14 merchandising categories. Bolz said some of the best-selling categories and products have strong ties to professionals, such as sales of plumbing supplies such as water heaters and woodwork for windows and doors. But the company also saw strong paint sales, as customers purchased interior and exterior paints, primers and stains, he said.
Pressured by harsh housing conditions
Lowe’s results add to housing market struggles following those of rivals home depot He said the same reluctance persists when it comes to tackling large-scale housing projects.
Home Depot beat Wall Street’s profit and sales expectations on Tuesday, but stuck to a conservative full-year outlook. The quarterly results reflect continued weakness in home improvement demand as U.S. consumers continue to postpone large projects due to financial concerns, as well as borrowing costs and high home prices.
Like Home Depot, Lowe’s feels constrained by the industry’s tough backdrop. Both companies have acquired companies that serve contractors and other professionals, which tend to be a more stable source of business.
Last year, Lowe’s acquired Foundation Building Materials, which sells drywall, insulation and other interior construction products to large residential and commercial professionals, for about $8.8 billion. It also acquired Artisan Design Group, which provides design services and installation of flooring, cabinetry and countertops to home builders and property managers, for approximately $1.33 billion.
Lowe’s is also making unique moves to reach customers who are delaying homebuying, such as launching a third-party marketplace to expand its product mix, using influencers to increase its visibility on social media, and restarting its children’s program to reach young families.
But Lowe’s and Home Depot are still waiting for signs that U.S. consumers are ready to jump into buying, selling and repairing homes at a more normal pace.
Lowe’s expects demand in the home improvement industry to remain “relatively flat” this year, Ellison said on the company’s earnings call. The company’s own full-year sales forecast is based on expectations that it will outperform the market, he said.
He said the company is closely monitoring whether there is a shift to more expensive discretionary purchases.
“As we continue to see high-value purchases made by DIYers, [do-it-yourself shopper]“It will show consumers that they are healthier and can buy with more confidence,” he said.
As of Tuesday’s close, Lowe’s stock is up nearly 16% this year, outpacing the S&P 500’s rise of about 1% over the same period. The company’s stock has risen about 15% over the past year, roughly matching the S&P 500’s rise of about 16% over that time.
