Shares of Lowe’s Corporations, Inc. (NYSE: LOW) had been up 2% on Tuesday. The inventory has gained 14% over the previous month. The house enchancment retailer is scheduled to report its earnings outcomes for the second quarter of 2025 on Wednesday, August 20, earlier than market open. Right here’s a have a look at what to anticipate from the earnings report:
Income
Analysts are projecting income of $23.9 billion for Lowe’s within the second quarter of 2025. This means a progress of 1% from the identical interval a yr in the past. Within the first quarter of 2025, web gross sales decreased 2% year-over-year to $20.9 billion.
Earnings
The consensus goal for Q2 2025 earnings per share is $4.25, which compares to adjusted EPS of $4.10 reported in Q2 2024. In Q1 2025, GAAP EPS decreased 5% YoY to $2.92.
Factors to notice
Lowe’s is prone to have confronted continued stress within the do-it-yourself (DIY) class with delicate demand for greater ticket discretionary initiatives. As a good portion of the corporate’s gross sales come from the DIY phase, this weak point could have impacted its Q2 efficiency.
Nevertheless, LOW is prone to have benefited from demand for spring initiatives in Q2. Final quarter, its comparable gross sales had been pressured by adversarial climate that negatively impacted spring visitors. On the time, the corporate anticipated a few of its spring demand to shift into Q2.
The retailer can also be anticipated to learn from sure elements comparable to an getting older housing inventory that can require repairs and upkeep, in addition to a scarcity for brand spanking new houses which may make individuals reluctant to maneuver thereby opting to remain and restore or renovate their present houses.
Amidst difficult market circumstances, Lowe’s is concentrated on driving progress in its Professional phase gross sales and on-line gross sales as a part of its Whole Residence Technique. In Q1, gross sales within the Professional phase grew within the mid-single digits. LOW’s continued investments to enhance the procuring expertise for its Professional clients, which embrace enhancements to its assortment, order and supply services, and loyalty program, are anticipated to yield advantages.
Lowe’s acquisition of Artisan Design Group, an organization that helps with the set up of flooring and counter tops, is anticipated to assist with its growth within the Professional class, because it appears to interact with bigger Professional clients.
LOW continues to work on driving on-line gross sales progress by means of its on-line product market which gives an expanded assortment and extra worth to clients. Final quarter, on-line gross sales grew 6%, helped by larger visitors and conversion charges.
