In an aerial view, a customer enters a Lowe’s store on May 21, 2025 in Cotati, California.
Justin Sullivan | Getty Images
Lowes On Wednesday, sales rose year-over-year for the quarter, but the company slightly lowered its full-year profit outlook to reflect a tougher economic environment.
The home improvement retailer now expects its total sales for the full year to be $86 billion, up from its previous expectations of $84.5 billion to $85.5 billion, due to a recent acquisition. However, it said it expects comparable sales, an industry measure that excludes one-time factors, to be flat from last year, compared with the previous range it shared of flat to 1%.
For the full year, it now expects adjusted earnings per share of around $12.25, at the lower end of its previous range of $12.20 to $12.45.
In a press release, the company said it had revised its outlook to “reflect continued uncertainty in the macroeconomic environment” and the acquisition of Foundation Building Materials, which was completed last month.
Here’s what the retailer reported for the fiscal third quarter compared to Wall Street estimates, according to a survey of analysts by LSEG:
- Earnings per share: $3.06 adjusted vs. $2.97 expected
- Income: $20.81 billion versus $20.82 billion expected
Shares rose more than 5% in pre-market trading Wednesday after Lowe’s said the current quarter was off to a strong start.
Lowe’s CEO Marvin Ellison said in the press release that the retailer reported positive comparable sales in the third quarter and also began the current quarter with positive comparable sales, “despite hurricane-related headwinds from the prior year.”
Lowe’s comparable sales increased 0.4% in the fiscal third quarter.
Home improvement trends, however, remain challenged by a slower housing market and higher borrowing costs – dynamics that have challenged the industry for more than two years.
In the quarter ended Oct. 31, Lowe’s net income fell to $1.62 billion, or $2.88 per share, from $1.7 billion, or $2.99, in the year-earlier period. Revenue increased from $20.17 billion in the year-ago quarter. After adjusting for one-time items, including pre-tax expenses associated with its acquisitions, Lowe’s reported earnings of $3.06 per share.
Rival Home deposit On Tuesday, the group also lowered its full-year profit forecast after missing Wall Street’s quarterly profit expectations for the third straight quarter. Chief Financial Officer Richard McPhail attributed the weak profits to weaker than usual storm activity, a tough housing market and consumer uncertainty.
Like Home Depot, Lowe’s has tried to attract more business from contractors and other home professionals to offset declining DIY sales. In August, Lowe’s announced it had reached an agreement to acquire Foundation Building Materials, a distributor of drywall, insulation and other interior building products to large residential and commercial professionals, for approximately $8.8 billion.
Earlier this year, Lowe’s announced another professional-focused acquisition. It announced in April that it had agreed to buy Artisan Design Group, which provides flooring, cabinet and countertop design and installation services for home builders and property managers, for nearly $1.33 billion.
When the company reported earnings in August, Lowe’s Chief Financial Officer Brandon Sink said he expected the company’s strategy, not improving industry conditions, to drive sales for the year. He said the retailer expects “a roughly flat home improvement market” for the year.