A few points to note about Lowe’s (LOW) performance in Q2 2025

Shares of Lowe’s Companies, Inc. (NYSE: LOW) stayed red on Thursday. The stock has gained 14% over the past three months. The home improvement retailer saw growth in sales and profits during the second quarter of 2025 and revised its outlook for the full year. Here are a few points to note about its Q2 performance:

Sales and earnings growth

In Q2 2025, total sales increased 2% year-over-year to $24 billion. Comparable sales rose 1.1%. GAAP earnings per share grew 2% to $4.27 while adjusted EPS rose 6% to $4.33 compared to last year.   

Business performance

In Q2, Lowe’s witnessed strong performance in both the Pro and DIY segments, while improved weather conditions helped drive strength in seasonal category sales. The company saw positive comps in most of its merchandise divisions. While comparable average ticket increased 2.9% in the quarter, transactions decreased 1.8%. Online sales grew 7.5%.

Lowe’s believes it is well-positioned to drive growth with its core DIY and small-to-medium Pro customers. The company remains optimistic on the medium to long-term outlook for the home improvement industry. This is driven by the assumption that the aging housing stock will continue to require repairs, and also that pent-up demand from delayed projects will drive growth once the market shifts.

As mentioned on its quarterly conference call, there is an estimated $50 billion of deferred project demand due to the postponement of larger discretionary projects. Meanwhile, it is estimated that 18 million new homes will be needed by 2033. These factors suggest positive demand trends for home improvement and construction going forward.

Acquisitions

After completing the acquisition of Artisan Design Group (ADG), a provider of design and installation services for flooring and countertops, Lowe’s announced the acquisition of Foundation Building Materials (FBM), a distributor of interior building products such as drywall, metal framing, and ceiling systems, for $8.8 billion.

This acquisition is anticipated to help LOW expand its Pro offering to serve large Pro customers and tap into a $250 billion total addressable market. FBM has a diversified customer base that includes residential homebuilders and commercial Pros. It also has a strong footing in markets where Lowe’s has less exposure. These factors are anticipated to complement Lowe’s capabilities and drive meaningful growth going forward.

Revised outlook

For fiscal year 2025, Lowe’s now expects total sales to range between $84.5-85.5 billion versus its previous range of $83.5-84.5 billion. Comparable sales are expected to be flat to up 1% versus the previous year. The company now expects GAAP EPS of approx. $12.10-12.35 versus the prior range of $12.15-12.40. Adjusted EPS is expected to be approx. $12.20-12.45.