Lowe's Q2 Earnings Exceed Expectations, Raises FY Revenue Guidance

Lowe's reported Q2 non-GAAP EPS of $4.33, beating expectations by $0.09. Revenue was $23.96B, in line with forecasts. The company raised its FY revenue guidance to $84.5 to $85.5 billion, up from $83.5 to $84.5 billion. Comparable sales are expected.

Lowe's Companies, Inc. (LOW) reported its second-quarter non-GAAP EPS of $4.33, surpassing analysts' expectations by $0.09. Revenue for the period reached $23.96 billion, aligning with market forecasts. The company has also increased its full-year revenue guidance to $84.5 to $85.5 billion, up from its previous estimate of $83.5 to $84.5 billion. Comparable sales are expected to remain strong.

Lowe's Q2 earnings were bolstered by several key factors, including product innovation, the MyLowe’s Rewards program, digital expansion, and resilient Pro demand. The company's acquisition of Artisan Design Group has expanded its reach in the design, distribution, and installation space for new home construction and large-scale renovation projects. This move is expected to contribute to total comparable sales growth of 1.5% for the second quarter [1].

Digital growth has been a significant driver for Lowe's. Online sales momentum from the first quarter, driven by higher traffic and conversion rates, is likely to continue benefiting from the company’s home improvement marketplace, powered by Mirakl. This marketplace allows third-party sellers to expand Lowe’s assortment without additional inventory or fulfillment center investment, offering scalable growth potential and appealing to both Pro and DIY shoppers [1].

The rollout of Mylow, the AI-powered virtual home improvement advisor, along with Mylow Companion for associates, has enhanced the customer experience and sales process. These tools provide project guidance and product recommendations both online and in-store, improving conversion rates and encouraging repeat visits [1].

Despite the ongoing weakness in DIY big-ticket discretionary categories such as flooring, kitchens, and baths, Lowe's has shown resilience. The appliance category, in particular, remains robust, supported by Lowe’s wide brand assortment and rapid delivery capabilities. The company has also implemented strategies to mitigate the impact of tariffs and inflation, including diversifying its supply chain and restructuring products to avoid vulnerable components [2].

Lowe's stock trades at 20.5X forward earnings, offering a slight discount to the Zacks Retail-Home Furnishings Industry average of 21X and the S&P 500's 24.7X. The company's dividend yield of 1.9% is above the industry average of 1.06% and the S&P 500's average of 1.15% [2].

Investors should closely monitor Lowe's upcoming Q2 earnings report for further insights into the company's performance and future prospects. The earnings report will provide clarity on the company's ability to navigate economic challenges and maintain its growth trajectory.

References:
[1] https://finance.yahoo.com/news/lowes-q2-2025-earnings-preview-123000861.html
[2] https://www.ainvest.com/news/home-depot-lowe-q2-earnings-navigating-housing-diy-market-trends-2508/