Solid Quarterly Performance From Lowe's

• Diluted EPS of $4.27; adjusted diluted EPS1 of $4.33
• Comparable sales increased 1.1%
• Updates full year 2025 outlook 

Lowe's Companies, Inc. (NYSE: LOW) today reported net earnings of $2.4 billion and diluted earnings per share (EPS) of $4.27 for the quarter ended Aug. 1, 2025, compared to diluted EPS of $4.17 in the second quarter of 2024. During the second quarter, the company recognized $43 million pre-tax expenses associated with the acquisition of Artisan Design Group (ADG). This negatively impacted second quarter diluted EPS by $0.06. Excluding these expenses, second quarter 2025 adjusted diluted EPS1 increased 5.6% to $4.33 compared to the prior-year adjusted diluted EPS1. 

Total sales for the quarter were $24.0 billion, compared to $23.6 billion in the prior-year quarter and comparable sales for the quarter increased 1.1%.

"This quarter, the company delivered positive comp sales driven by solid performance in both Pro and DIY. Despite challenging weather early in the quarter, our teams drove both sales growth and improved profitability. I'd also like to thank our front-line associates for their outstanding service which led to another increase in customer satisfaction scores." said Marvin R. Ellison, Lowe's chairman, president and CEO. "In June, we closed on the acquisition of ADG, which strengthens our ability to capture a greater portion of Pro planned spend and expands our reach into the new home construction market."

As of Aug. 1, 2025, Lowe's operated 1,753 stores representing 195.5 million square feet of retail selling space.

Capital Allocation
The company continues to execute a disciplined capital allocation program to deliver long-term, sustainable shareholder value. During the quarter, the company invested $1.3 billion for the acquisition of ADG and paid $645 million in dividends.  

Lowe's Business Outlook

The company's expectations for its core business performance in fiscal 2025 remains unchanged. The company is updating its outlook for the operating results of full year 2025 to reflect the inclusion of ADG.

Adjusted operating income, adjusted operating margin, and adjusted diluted EPS are non-GAAP financial measures that exclude the transaction costs, purchase accounting adjustments and intangible asset amortization related to the acquisition of ADG. The company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items (which may be significant) without unreasonable effort.

Full Year 2025 Outlook

• Total sales of $84.5 to $85.5 billion (previously $83.5 to $84.5 billion)
• Comparable sales expected to be flat to up +1% as compared to prior year
• Operating income as a percentage of sales (operating margin) of 12.1% to 12.2%
  (previously 12.3% to 12.4%)
• Adjusted operating income as a percentage of sales (adjusted operating margin) of 12.2% to 12.3%
• Net interest expense of approximately $1.3 billion
• Effective income tax rate of approximately 24.5%
• Diluted earnings per share of approximately $12.10 to $12.35 (previously $12.15 to $12.40)
• Adjusted diluted earnings per share of approximately $12.20 to $12.45
• Capital expenditures of approximately $2.5 billion

A conference call to discuss second quarter 2025 operating results is scheduled for today, Wednesday, Aug. 20, at 9 a.m. ET. The conference call will be available by webcast and can be accessed by visiting Lowe's website at ir.lowes.com and clicking on Lowe's Second Quarter 2025 Earnings Conference Call Webcast. Supplemental slides will be available  prior to the start of the conference call. A replay of the call will be archived at ir.lowes.com.

Lowe's Companies, Inc. (NYSE: LOW) is a FORTUNE® 100 home improvement company serving approximately 16 million customer transactions a week in the United States. With total fiscal year 2024 sales of more than $83 billion, Lowe's operates over 1,700 home improvement stores and employs approximately 300,000 associates. Based in Mooresville, N.C., Lowe's supports the communities it serves through programs focused on creating safe, affordable housing, improving community spaces, helping to develop the next generation of skilled trade experts and providing disaster relief to communities in need. For more information, visit Lowes.com.

Source : Lowe's 

Image : Lowe's (corporate)

For all the very latest news and intelligence on the UK's largest home improvement and garden retailers, sign up for the Insight DIY weekly newsletter.