Shares of Lowe’s Firms, Inc. (NYSE: LOW) stayed purple on Thursday. The inventory has gained 14% over the previous three months. The house enchancment retailer noticed development in gross sales and income through the second quarter of 2025 and revised its outlook for the complete yr. Listed below are just a few factors to notice about its Q2 efficiency:
Gross sales and earnings development
In Q2 2025, whole gross sales elevated 2% year-over-year to $24 billion. Comparable gross sales rose 1.1%. GAAP earnings per share grew 2% to $4.27 whereas adjusted EPS rose 6% to $4.33 in comparison with final yr.
Enterprise efficiency
In Q2, Lowe’s witnessed sturdy efficiency in each the Professional and DIY segments, whereas improved climate circumstances helped drive energy in seasonal class gross sales. The corporate noticed constructive comps in most of its merchandise divisions. Whereas comparable common ticket elevated 2.9% within the quarter, transactions decreased 1.8%. On-line gross sales grew 7.5%.
Lowe’s believes it’s well-positioned to drive development with its core DIY and small-to-medium Professional prospects. The corporate stays optimistic on the medium to long-term outlook for the house enchancment trade. That is pushed by the belief that the getting old housing inventory will proceed to require repairs, and likewise that pent-up demand from delayed tasks will drive development as soon as the market shifts.
As talked about on its quarterly convention name, there’s an estimated $50 billion of deferred mission demand because of the postponement of bigger discretionary tasks. In the meantime, it’s estimated that 18 million new properties can be wanted by 2033. These components recommend constructive demand developments for house enchancment and building going ahead.
Acquisitions
After finishing the acquisition of Artisan Design Group (ADG), a supplier of design and set up companies for flooring and counter tops, Lowe’s introduced the acquisition of Basis Constructing Supplies (FBM), a distributor of inside constructing merchandise corresponding to drywall, metallic framing, and ceiling programs, for $8.8 billion.
This acquisition is anticipated to assist LOW develop its Professional providing to serve massive Professional prospects and faucet right into a $250 billion whole addressable market. FBM has a diversified buyer base that features residential homebuilders and business Execs. It additionally has a powerful footing in markets the place Lowe’s has much less publicity. These components are anticipated to enrich Lowe’s capabilities and drive significant development going ahead.
Revised outlook
For fiscal yr 2025, Lowe’s now expects whole gross sales to vary between $84.5-85.5 billion versus its earlier vary of $83.5-84.5 billion. Comparable gross sales are anticipated to be flat to up 1% versus the earlier yr. The corporate now expects GAAP EPS of approx. $12.10-12.35 versus the prior vary of $12.15-12.40. Adjusted EPS is predicted to be approx. $12.20-12.45.
