What caused LOW's Q2 2025 earnings to miss forecasts?

Lowe's Q2 2025 earnings missed forecasts due to a combination of factors:

1. **Decline in Revenue**: The most significant factor was a 5.5% year-over-year drop in revenue, which fell short of analyst estimates. Total revenue for the quarter was $23.6 billion, compared to the expected $23.93 billion.
2. **Weakness in DIY Sales**: The company experienced a 5.1% decrease in comparable sales, primarily driven by reduced demand from DIY customers for big-ticket discretionary items. This trend was exacerbated by unfavorable weather conditions and a challenging macroeconomic environment.
3. **Impact of Inflation and Interest Rates**: Rising interest rates and inflation likely contributed to the decline in consumer spending on discretionary items, such as home improvement projects, which directly affected Lowe's sales.
4. **Strategic Initiatives**: Despite the challenges, Lowe's Total Home strategy showed progress, particularly in the Pro segment and online sales, which achieved mid-single-digit growth in comparable sales.

In summary, Lowe's Q2 2025 earnings missed forecasts due to a combination of lower revenue, weakened DIY sales, and the broader economic conditions, despite strategic initiatives showing progress.