Lowe’s Stock Edges Lower Despite Q1 Earnings Beat, Steady Guidance

Lowe’s Companies' (LOW) shares edged lower in morning trade on Wednesday despite reporting first-quarter earnings that beat expectations and reaffirming its full-year outlook amid broader market weakness. 

The company reported adjusted earnings of $2.92 per share, beating analysts’ estimates of $2.88, as per Koyfin.

Its revenue came in at $20.93 billion, which was just a whisker short of Wall Street’s forecast of $20.96 billion.

Lowe’s comparable sales for the quarter decreased 1.7%. The company attributed the decline to unfavorable weather earlier in the quarter, the same as Home Depot (HD), which was partially offset by online comparable sales growth.

"Despite near-term uncertainty and housing market headwinds, our team's unwavering focus on exceptional customer service has elevated satisfaction scores," said Lowe’s CEO Marvin R. Ellison, confirming that the slowdown in home sales is impacting demand.

Ellison added that sales trends across the business improved as the weather improved and customers tuned to the company’s stores for garden supplies, outdoor power equipment, and other spring items.

Like Home Depot, Lowe’s reaffirmed its full-year outlook for fiscal 2025. It expects revenue of $83.5 billion to $84.5 billion and projects flat to 1% comparable sales growth. Earnings per share (EPS) are forecast to come in between $12.15 and $12.40. 

It did not say that it would raise prices, like Walmart (WMT), but it did not confirm that it would keep prices the same to offset any tariff-related costs.

Ellison said that Lowe’s is continuing to try and diversify its imports to avoid depending on a single region. Currently, around 60% of Lowe’s purchases come from the U.S., and 20% of the purchase volume is from China.  

“Our global sourcing team has identified exciting diversification opportunities in the U.S. and around the globe that we’re actively pursuing,” he said.

Lowe’s stock edged 0.6% lower in morning trade. The shares have fallen over 7% this year, and are down more than 1% over the past 12 months. 

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