Shares of Lowe’s Companies, Inc. (NYSE: LOW) were up 2% on Tuesday. The stock has gained 14% over the past month. The home improvement retailer is scheduled to report its earnings results for the second quarter of 2025 on Wednesday, August 20, before market open. Here’s a look at what to expect from the earnings report:
Revenue
Analysts are projecting revenue of $23.9 billion for Lowe’s in the second quarter of 2025. This implies a growth of 1% from the same period a year ago. In the first quarter of 2025, net sales decreased 2% year-over-year to $20.9 billion.
Earnings
The consensus target for Q2 2025 earnings per share is $4.25, which compares to adjusted EPS of $4.10 reported in Q2 2024. In Q1 2025, GAAP EPS decreased 5% YoY to $2.92.
Points to note
Lowe’s is likely to have faced continued pressure in the do-it-yourself (DIY) category with soft demand for bigger ticket discretionary projects. As a significant portion of the company’s sales come from the DIY segment, this weakness may have impacted its Q2 performance.
However, LOW is likely to have benefited from demand for spring projects in Q2. Last quarter, its comparable sales were pressured by adverse weather that negatively impacted spring traffic. At the time, the company anticipated some of its spring demand to shift into Q2.
The retailer is also expected to benefit from certain factors such as an aging housing stock that will require repairs and maintenance, as well as a shortage for new homes which can make people reluctant to move thereby opting to stay and repair or renovate their existing homes.
Amidst challenging market conditions, Lowe’s is focused on driving growth in its Pro segment sales and online sales as part of its Total Home Strategy. In Q1, sales in the Pro segment grew in the mid-single digits. LOW’s continued investments to improve the shopping experience for its Pro customers, which include enhancements to its assortment, order and delivery facilities, and loyalty program, are anticipated to yield benefits.
Lowe’s acquisition of Artisan Design Group, a company that helps with the installation of flooring and countertops, is anticipated to help with its expansion in the Pro category, as it looks to engage with larger Pro customers.
LOW continues to work on driving online sales growth through its online product marketplace which offers an expanded assortment and more value to customers. Last quarter, online sales grew 6%, helped by higher traffic and conversion rates.
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