MOORESVILLE, N.C. – Home improvement retailer Lowe’s reported first-quarter 2025 earnings on Wednesday that beat Wall Street expectations for profit but came in slightly below revenue projections, as a soft housing market and unfavorable early spring weather weighed on results.
For the quarter ending May 2, the home improvement retailer posted net income of $1.6 billion, or $2.92 per share, down from $1.76 billion, or $3.06 per share, a year ago. Revenue for the quarter slipped to $20.93 billion from $21.36 billion, with comparable sales declining 1.7%.
Despite the decline, CEO Marvin Ellison emphasized the company’s operational strengths and ongoing efforts to cater to both DIY customers and home professionals. “Despite near-term uncertainty and housing market headwinds, our team’s unwavering focus on exceptional customer service has elevated satisfaction scores,” Ellison said in the company’s earnings release.
See also:
Ellison attributed sales pressure to a slow start in February, when poor weather drove a 5.4% decline in comparable sales. He also noted that business improved in March with a 1.7% increase, followed by a 2.6% decline in April, partly due to the Easter holiday shift. He noted that Pro customer and online sales remained resilient, each growing by mid-single digits.
Sales to home professionals have been a bright spot, bolstered by strategic investments dating back to 2018, including expanded product offerings and a loyalty program. “We’re seeing the results of years of investment in the Pro business,” Ellison said on the earnings call.
Lowe’s is sticking by its full-year guidance, projecting total sales of $83.5 billion to $84.5 billion and comparable sales ranging from flat to 1% growth. The company expects diluted earnings per share for the year to land between $12.15 and $12.40.
CFO Brandon Sink noted that, while Lowe’s customer base tends to be financially stable homeowners, many are still delaying larger renovation projects. “The consumer is very healthy, but still mainly sitting on the sidelines,” he said in the company’s’ earnings call, adding, “The good news is the trends aren’t getting any worse.”
In April, Lowe’s announced its acquisition of Artisan Design Group in a $1.3 billion deal to further strengthen its offerings to homebuilders and property managers.
On the issue of looming uncertainty around tariffs and knock-on effects on consumer confidence, Ellison said Lowe’s will work with suppliers to limit customer impact and retain its competitive edge. “We’re not in the habit of donating market share to the competition,” he said, noting that only about 20% of Lowe’s product volume is sourced from China and adding that the company is actively diversifying its sourcing strategy.