Lowe's (LOW) Q1 2025 Earnings
How Did LOW Stock React to Q1 2025 Earnings?
S&P 500 over the same 30 days: +4.10%.
Did LOW Beat Earnings? Q1 2025 Results
Yes. Lowe's reported Q1 2025 earnings of $2.92 a share on May 21, 2025, beating the $2.88 consensus estimate by 1.5%. Revenue was $20.9B against a $21.0B estimate.
Lowe's delivered a mixed first quarter for fiscal 2025, edging past profit expectations while falling just short on the top line amid a cautious consumer backdrop. GAAP diluted EPS of $2.92 beat the $2.88 consensus by 1.48%, though revenue of $20.93 billion came in slightly below the $20.97 billion estimate and declined 2.0% year-over-year, as shoppers pulled back on bigger-ticket purchases above $500. The most telling pressure point was comparable sales, which fell 1.7%, with transaction volume dropping 5.4% even as the average ticket nudged up 1.7%; unfavorable early-quarter weather added to the headwinds, with Easter timing distorting monthly comparisons by roughly 250 basis points in either direction. Gross margin expanded modestly to 33.38%, but higher SG&A costs compressed operating margin to 11.92%. Despite the soft quarter, management reaffirmed full-year 2025 guidance, projecting total sales of $83.50 billion to $84.50 billion, comparable sales flat to up 1%, and GAAP diluted EPS of $12.15 to $12.40, signaling confidence that Pro and online momentum can support a gradual recovery.
- Mid-single-digit Pro comparable sales growth
- Online comparable sales growth of 6.0%
- Gross margin expansion of 19 basis points year-over-year to 33.38%
- Average ticket increased 1.7% year-over-year
- Comp above company average in appliances, building materials, rough plumbing, and hardware categories
“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 #1 ranking in Customer Satisfaction among Home Improvement Retailers by J.D. Power.”
Lowe's CEO, on the earnings call
What Was Lowe's's Outlook in Q1 2025?
Lowe's affirmed its full year 2025 outlook: total sales of $83.5 to $84.5 billion; comparable sales flat to up 1% year-over-year; operating margin of 12.3% to 12.4%; net interest expense of approximately $1.3 billion; depreciation and amortization of approximately $1.8 billion; effective income tax rate of approximately 24.5%; diluted EPS of approximately $12.15 to $12.40; and capital expenditures of approximately $2.5 billion.
LOW YoY Financials
| Metric | Q1 2025 | Q1 2024 | Year over year |
|---|---|---|---|
| Revenue | $20.9B | $21.4B | −2.0% |
| Gross Profit | $7.0B | $6.7B | +4.9% |
| Operating Income | $2.5B | $2.7B | −6.0% |
| Net Income | $1.6B | $1.8B | −6.5% |
Figures from SEC filings and company reports. Not investment advice.