Lowe's Companies · Earnings release

For 6:00 a.m. ET Release

LOWE’S REPORTS FIRST QUARTER 2025 SALES AND EARNINGS RESULTS

— Comparable Sales Decreased 1.7%; Diluted EPS of $2.92 —

— Affirms Full Year 2025 Outlook —

MOORESVILLE, N.C., May 21, 2025 – Lowe’s Companies, Inc. (NYSE: LOW) today reported net earnings of $1.6 billion and diluted earnings per share (EPS) of $2.92 for the quarter ended May 2, 2025, compared to diluted EPS of $3.06 in the first quarter of 2024.

Total sales for the quarter were $20.9 billion, compared to $21.4 billion in the prior-year quarter. Comparable sales for the quarter decreased 1.7% as unfavorable weather earlier in the quarter was partially offset by mid-single-digit Pro and 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 and earned Lowe’s the #1 ranking in Customer Satisfaction among Home Improvement Retailers* by J.D. Power,” said Marvin R. Ellison, Lowe’s chairman, president and CEO. “Strategic investments in technology, inviting store environments, and our dedicated associates continue to solidify our commitment to serving our customers and communities. I’d like to extend my appreciation to our front-line associates for the dedication and hard work especially during the busy spring season.”

As of May 2, 2025, Lowe’s operated 1,750 stores representing 195.3 million square feet of retail selling space.

Capital Allocation

The company remains committed to generating sustainable shareholder value through a disciplined capital program, as reflected in a dividend payment this quarter of $645 million.

* Lowe’s received the highest score in the J.D. Power 2025 U.S. Home Improvement Retailer Satisfaction Study of customers’ satisfaction with major home improvement retailers. Visit jdpower.com/awards for more details.

Lowe’s Business Outlook

The company is affirming its outlook for full year 2025.

•G2Comparable sales expected to be flat to up +1% as compared to prior year

•G3Operating income as a percentage of sales (operating margin) of 12.3% to 12.4%

•G4Net interest expense of approximately $1.3 billion

•G5Depreciation and Amortization expense of approximately $1.8 billion

•G6Effective income tax rate of approximately 24.5%

•G7Diluted earnings per share of approximately $12.15 to $12.40

•G8Capital expenditures of approximately $2.5 billion

A conference call to discuss first quarter 2025 operating results is scheduled for today, Wednesday, May 21, 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 First Quarter 2025 Earnings Conference Call Webcast. Supplemental slides will be available approximately 15 minutes prior to the start of the conference call. A replay of the call will be archived at ir.lowes.com.

Lowe’s Companies, Inc.

Lowe’s Companies, Inc. (NYSE: LOW) is a FORTUNE® 50 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.

Disclosure Regarding Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements including words such as “believe”, “expect”, “anticipate”, “plan”, “desire”, “project”, “estimate”, “intend”, “will”, “should”, “could”, “would”, “may”, “strategy”, “potential”, “opportunity”, “outlook”, “scenario”, “guidance”, and similar expressions are forward-looking statements. Forward-looking statements involve, among other things, expectations, projections, and assumptions about future financial and operating results, objectives (including objectives related to environmental and social matters), business outlook, priorities, sales growth, shareholder value, capital expenditures, cash flows, the housing market, the home improvement industry, demand for products and services including customer acceptance of new offerings and initiatives, macroeconomic conditions and consumer spending, share repurchases, and Lowe’s strategic initiatives, including those relating to acquisitions and dispositions and the impact of such transactions on our strategic and operational plans and financial results.

Such statements involve risks and uncertainties, and we can give no assurance that they will prove to be correct. Actual results may differ materially from those expressed or implied in such statements.

A wide variety of potential risks, uncertainties, and other factors could materially affect our ability to achieve the results either expressed or implied by these forward-looking statements including, but not limited to, the occurrence of any event or other circumstance that could give rise to the right of one or both of the parties to terminate the merger agreement between Lowe’s and ADG, the failure to obtain the requisite approvals or to satisfy the other conditions to the proposed merger on a timely basis or at all, the possibility that the anticipated benefits and synergies of the merger are not realized when expected, or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of changes in general economic conditions, such as volatility and/or lack of liquidity from time to time in U.S. and world financial markets and the consequent reduced availability and/or higher cost of borrowing to Lowe’s and its customers, slower rates of growth in real disposable personal income that could affect the rate of growth in consumer spending, inflation and its impacts on discretionary spending and on our costs, shortages, and other disruptions in the labor supply, interest rate and currency fluctuations, home price appreciation or decreasing housing turnover, age of housing stock, the availability of consumer credit and of mortgage financing, trade policy changes or additional tariffs, outbreaks of pandemics, fluctuations in fuel and energy costs, inflation or deflation of commodity prices, natural disasters, geopolitical or armed conflicts, acts of both domestic and international terrorism, and other factors that can negatively affect our customers.

Investors and others should carefully consider the foregoing factors and other uncertainties, risks and potential events including, but not limited to, those described in “Item 1A - Risk Factors” in our most recent Annual Report on Form 10-K and as may be updated from time to time in Item 1A in our quarterly reports on Form 10-Q or other subsequent filings with the SEC. All such forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update these statements other than as required by law.

LOW-IR

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Contacts:

Shareholder/Analyst Inquiries:

Media Inquiries:

Kate Pearlman

Steve Salazar

steve.j.salazar@lowes.com

kate.pearlman@lowes.com

Lowe’s Companies, Inc.

Consolidated Statements of Current Earnings and Accumulated Deficit (Unaudited)

In Millions, Except Per Share and Percentage Data

Three Months Ended

Current Earnings

Amount

% Sales

Amount

% Sales

Net sales

$

$

Cost of sales

Gross margin

Expenses:

Selling, general and administrative

Depreciation and amortization

Operating income

Interest – net

Pre-tax earnings

Income tax provision

Net earnings

$

$

Weighted average common shares outstanding – basic

Basic earnings per common share (1)

$

$

Weighted average common shares outstanding – diluted

Diluted earnings per common share (1)

$

$

Cash dividends per share

$

$

Accumulated Deficit

Balance at beginning of period

$

$

Net earnings

Cash dividends declared

Share repurchases

Balance at end of period

$

$

(1) Under the two-class method, earnings per share is calculated using net earnings allocable to common shares, which is derived by reducing net earnings by the earnings allocable to participating securities. Net earnings allocable to common shares used in the basic and diluted earnings per share calculation were $1,636 million for the three months ended May 2, 2025, and $1,750 million for the three months ended May 3, 2024.

Lowe’s Companies, Inc.

Consolidated Statements of Comprehensive Income (Unaudited)

In Millions, Except Percentage Data

Three Months Ended

Amount

% Sales

Amount

% Sales

Net earnings

$

$

Cash flow hedges – net of tax

(3)

(3)

Other

—

—

(1)

—

Other comprehensive loss

(3)

(4)

Comprehensive income

$

$

Lowe’s Companies, Inc.

Consolidated Balance Sheets (Unaudited)

In Millions, Except Par Value Data

Assets

Current assets:

Cash and cash equivalents

$

$

Short-term investments

Merchandise inventory – net

Other current assets

Total current assets

Property, less accumulated depreciation

Operating lease right-of-use assets

Long-term investments

Deferred income taxes – net

Other assets

Total assets

$

$

Liabilities and shareholders' deficit

Current liabilities:

Current maturities of long-term debt

Current operating lease liabilities

Accounts payable

Accrued compensation and employee benefits

Deferred revenue

Other current liabilities

Total current liabilities

Long-term debt, excluding current maturities

Noncurrent operating lease liabilities

Deferred revenue – Lowe's protection plans

Other liabilities

Total liabilities

Shareholders' deficit:

Preferred stock, $5 par value: Authorized – 5.0 million shares; Issued and outstanding – none

—

—

Common stock, $0.50 par value: Authorized – 5.6 billion shares; Issued and outstanding – 560 million and 572 million, respectively

Accumulated deficit

Accumulated other comprehensive income

Total shareholders' deficit

Total liabilities and shareholders' deficit

$

$

Lowe’s Companies, Inc.

Consolidated Statements of Cash Flows (Unaudited)

In Millions

Three Months Ended

Cash flows from operating activities:

Net earnings

$

$

Adjustments to reconcile net earnings to net cash provided by operating activities:

Depreciation and amortization

Noncash lease expense

Deferred income taxes

Loss/(Gain) on property and other assets – net

(7)

Share-based payment expense

Changes in operating assets and liabilities:

Merchandise inventory – net

Other operating assets

Accounts payable

Other operating liabilities

Net cash provided by operating activities

Cash flows from investing activities:

Purchases of investments

Proceeds from sale/maturity of investments

Capital expenditures

Proceeds from sale of property and other long-term assets

2

Other – net

(1)

—

Net cash used in investing activities

Cash flows from financing activities:

Repayment of debt

Proceeds from issuance of common stock under share-based payment plans

2

Cash dividend payments

Repurchases of common stock

Other – net

(5)

Net cash used in financing activities

Net increase in cash and cash equivalents

Cash and cash equivalents, beginning of period

Cash and cash equivalents, end of period

$

$