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Lowe's Q3 Earnings Top, Comps Rise on Pro Strength, FY25 Sales View Up
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Key Takeaways
Lowe's delivered Q3 earnings growth with comps up 0.4% on Pro, online and home services
strength.
Net sales rose to $20.8B, aided by 11.4% online growth and double-digit home services gains.
The company lifted its FY25 sales view to $86B while projecting flat comparable sales for the year.
Lowe’s Companies, Inc. (LOW - Free Report) posted third-quarter fiscal 2025 results with year-over-year growth in both the top and bottom lines. While revenues came in line with the Zacks Consensus Estimate, earnings surpassed the same. The Mooresville, NC-based home improvement retailer posted another quarter of positive comparable sales, reflecting continued traction across Pro, online and home services performance.
Management noted that November also started with positive comparable sales, even against last year’s hurricane-related demand. With the Foundation Building Materials (FBM) acquisition completed last month, Lowe’s emphasized that it is positioned to expand its reach within the Pro segment and drive long-term sales and profit improvement. Lowe’s also updated its full-year outlook to incorporate the recently closed FBM acquisition and reflect ongoing macro uncertainty.
Lowe’s posted adjusted earnings of $3.06 per share, which beat the Zacks Consensus Estimate of $2.97. The figure marked a 5.9% increase from earnings of $2.89 per share reported in the same period last year. Including costs related to the acquisition of FBM and Artisan Design Group, quarterly earnings came in at $2.88 per share, down from $2.99 in the prior-year period.
Lowe's Companies, Inc. Price, Consensus and EPS Surprise
Net sales of $20,813 million met the consensus estimate and increased slightly from $20,170 million in the previous year. The growth was driven by a 0.4% rise in comparable sales, reflecting 11.4% online sales growth, double-digit growth in home services and continued expansion in the Pro segment. We had expected a 1.3% increase in comparable sales.
LOW’s Margin & Cost Details
The gross margin expanded to 34.2%, up 50 basis points from the prior-year quarter. SG&A expenses increased to 20% of sales, up from 19% in the year-ago period, reflecting acquisition-related items and higher operating costs.
As a result, operating income came in at $2,481 million, down from $2,536 million in the year-ago quarter. The operating margin contracted to 11.9% from 12.6%.
LOW’s Financial Health Snapshot
This Zacks Rank #3 (Hold) company ended the quarter with cash and cash equivalents of $621 million, long-term debt (excluding current maturities) of $37,498 million and a shareholders’ deficit of $10,382 million.
For the nine months ended Oct. 31, operating cash flow totaled $8,297 million. During the quarter, the company deployed $8.8 billion for the FBM acquisition and paid $673 million in dividends.
As of Oct. 31, 2025, Lowe's operated 1,756 stores, encompassing a total of 195.8 million square feet of retail selling space.
A Sneak Peek Into LOW’s FY25 Outlook
Lowe’s now expects total sales of $86 billion, up from the prior range of $84.5-$85.5 billion. Comparable sales are projected to be flat compared with the earlier expectation of flat to up 1%. The company anticipates an adjusted operating margin of 12.1%, slightly below the previous forecast of 12.2%-12.3%. Net interest expenses are now expected to be approximately $1.4 billion versus the prior $1.3 billion.
Lowe’s expects adjusted earnings of about $12.25 per share, within the earlier projected range of $12.20-$12.45. Capital expenditures remain guided at approximately $2.5 billion.
Lowe’s Stock Price Performance
Shares of Lowe’s have fallen 9.4% in the past month compared with the industry’s decline of 7.5%.
Stocks Looking Red Hot
The Chefs' Warehouse, Inc. (CHEF - Free Report) , a premier distributor of specialty food products in the United States, currently sports a Zacks Rank #1 (Strong Buy). CHEF has a trailing four-quarter earnings surprise of 14.7%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CHEF’s current financial-year sales and EPS calls for growth of 8.1% and 29.3%, respectively, from the year-ago reported numbers.
Boot Barn Holdings, Inc. (BOOT - Free Report) , the nation’s leading lifestyle retailer of western and work-related footwear, apparel and accessories, currently carries a Zacks Rank #2 (Buy). BOOT has a trailing four-quarter earnings surprise of 5.4%, on average.
The Zacks Consensus Estimate for Boot Barn’s current financial-year sales and EPS implies growth of 16.2% and 20.5%, respectively, from the year-ago reported numbers.
Ollie's Bargain Outlet Holdings, Inc. (OLLI - Free Report) , a leading off-price retailer of brand-name household products, currently carries a Zacks Rank #2. OLLI has a trailing four-quarter earnings surprise of 4.2%, on average.
The Zacks Consensus Estimate for Ollie's Bargain’s current financial-year sales and EPS suggests growth of 16.4% and 16.5%, respectively, from the year-ago reported numbers.
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Lowe's Q3 Earnings Top, Comps Rise on Pro Strength, FY25 Sales View Up
Key Takeaways
Lowe’s Companies, Inc. (LOW - Free Report) posted third-quarter fiscal 2025 results with year-over-year growth in both the top and bottom lines. While revenues came in line with the Zacks Consensus Estimate, earnings surpassed the same. The Mooresville, NC-based home improvement retailer posted another quarter of positive comparable sales, reflecting continued traction across Pro, online and home services performance.
Management noted that November also started with positive comparable sales, even against last year’s hurricane-related demand. With the Foundation Building Materials (FBM) acquisition completed last month, Lowe’s emphasized that it is positioned to expand its reach within the Pro segment and drive long-term sales and profit improvement. Lowe’s also updated its full-year outlook to incorporate the recently closed FBM acquisition and reflect ongoing macro uncertainty.
LOW’s Quarterly Performance: Key Metrics & Insights
Lowe’s posted adjusted earnings of $3.06 per share, which beat the Zacks Consensus Estimate of $2.97. The figure marked a 5.9% increase from earnings of $2.89 per share reported in the same period last year. Including costs related to the acquisition of FBM and Artisan Design Group, quarterly earnings came in at $2.88 per share, down from $2.99 in the prior-year period.
Lowe's Companies, Inc. Price, Consensus and EPS Surprise
Lowe's Companies, Inc. price-consensus-eps-surprise-chart | Lowe's Companies, Inc. Quote
Net sales of $20,813 million met the consensus estimate and increased slightly from $20,170 million in the previous year. The growth was driven by a 0.4% rise in comparable sales, reflecting 11.4% online sales growth, double-digit growth in home services and continued expansion in the Pro segment. We had expected a 1.3% increase in comparable sales.
LOW’s Margin & Cost Details
The gross margin expanded to 34.2%, up 50 basis points from the prior-year quarter. SG&A expenses increased to 20% of sales, up from 19% in the year-ago period, reflecting acquisition-related items and higher operating costs.
As a result, operating income came in at $2,481 million, down from $2,536 million in the year-ago quarter. The operating margin contracted to 11.9% from 12.6%.
LOW’s Financial Health Snapshot
This Zacks Rank #3 (Hold) company ended the quarter with cash and cash equivalents of $621 million, long-term debt (excluding current maturities) of $37,498 million and a shareholders’ deficit of $10,382 million.
For the nine months ended Oct. 31, operating cash flow totaled $8,297 million. During the quarter, the company deployed $8.8 billion for the FBM acquisition and paid $673 million in dividends.
As of Oct. 31, 2025, Lowe's operated 1,756 stores, encompassing a total of 195.8 million square feet of retail selling space.
A Sneak Peek Into LOW’s FY25 Outlook
Lowe’s now expects total sales of $86 billion, up from the prior range of $84.5-$85.5 billion. Comparable sales are projected to be flat compared with the earlier expectation of flat to up 1%. The company anticipates an adjusted operating margin of 12.1%, slightly below the previous forecast of 12.2%-12.3%. Net interest expenses are now expected to be approximately $1.4 billion versus the prior $1.3 billion.
Lowe’s expects adjusted earnings of about $12.25 per share, within the earlier projected range of $12.20-$12.45. Capital expenditures remain guided at approximately $2.5 billion.
Lowe’s Stock Price Performance
Shares of Lowe’s have fallen 9.4% in the past month compared with the industry’s decline of 7.5%.
Stocks Looking Red Hot
The Chefs' Warehouse, Inc. (CHEF - Free Report) , a premier distributor of specialty food products in the United States, currently sports a Zacks Rank #1 (Strong Buy). CHEF has a trailing four-quarter earnings surprise of 14.7%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CHEF’s current financial-year sales and EPS calls for growth of 8.1% and 29.3%, respectively, from the year-ago reported numbers.
Boot Barn Holdings, Inc. (BOOT - Free Report) , the nation’s leading lifestyle retailer of western and work-related footwear, apparel and accessories, currently carries a Zacks Rank #2 (Buy). BOOT has a trailing four-quarter earnings surprise of 5.4%, on average.
The Zacks Consensus Estimate for Boot Barn’s current financial-year sales and EPS implies growth of 16.2% and 20.5%, respectively, from the year-ago reported numbers.
Ollie's Bargain Outlet Holdings, Inc. (OLLI - Free Report) , a leading off-price retailer of brand-name household products, currently carries a Zacks Rank #2. OLLI has a trailing four-quarter earnings surprise of 4.2%, on average.
The Zacks Consensus Estimate for Ollie's Bargain’s current financial-year sales and EPS suggests growth of 16.4% and 16.5%, respectively, from the year-ago reported numbers.