Lowe’s Companies, Inc. (NYSE: LOW) First Quarter 2025 Results
Lowe’s Companies, Inc. (NYSE: LOW) reported its sales and earnings results for the first quarter of 2025:
– The company reported **net earnings** of **$1.6 billion** and **diluted earnings per share (EPS)** of **$2.92** for the quarter ended May 2, 2025, compared to diluted EPS of **$3.06** in the first quarter of 2024.
– **Total sales** for the quarter were **$20.9 billion**, a decrease from **$21.4 billion** in the prior-year quarter.
– **Comparable sales** for the quarter decreased by **1.7%**. However, mid-single-digit Pro and online comparable sales growth partially offset this decline.
– Despite the challenges faced, Lowe’s CEO Marvin R. Ellison highlighted the company’s commitment to exceptional customer service, leading to the #1 ranking in Customer Satisfaction among Home Improvement Retailers by J.D. Power.
– As of May 2, 2025, Lowe’s operated **1,750 stores** representing **195.3 million square feet** of retail selling space.
## Financial Performance and Outlook:
– **Operating income** for the quarter was **$2.494 billion**, a decrease from **$2.653 billion** in the same quarter last year.
– **Diluted earnings per share** saw a decrease to **$2.92** from **$3.06** in the first quarter of 2024.
– **Capital Allocation** included a **dividend payment** this quarter of **$645 million**.
– The company has affirmed its **full year 2025 outlook** with the following expectations:
– **Total sales** of **$83.5 to $84.5 billion**.
– **Comparable sales** expected to be **flat to up +1%** compared to the prior year.
– **Operating income** as a percentage of sales (operating margin) of **12.3% to 12.4%**.
– **Net interest expense** of approximately **$1.3 billion**.
– **Depreciation and Amortization expense** of approximately **$1.8 billion**.
– **Effective income tax rate** of approximately **24.5%**.
– **Diluted earnings per share** of approximately **$12.15 to $12.40**.
– **Capital expenditures** of approximately **$2.5 billion**.
## Consolidated Financials:
– **Net earnings** for the quarter ended May 2, 2025, were **$1.641 billion**, representing **7.84%** of sales.
– **Diluted earnings per common share** decreased to **$2.92** from **$3.06** in the prior year.
– **Comprehensive income** for the quarter was **$1.638 billion**.
– **Cash and cash equivalents** as of May 2, 2025, were **$3.054 billion**.
– **Total assets** and **total liabilities** as of May 2, 2025, were **$45.372 billion** and **$58.626 billion**, respectively.
– **Net cash provided by operating activities** for the quarter was **$3.379 billion**.
## Forward-Looking Statements and Risk Factors:
– The press release includes forward-looking statements regarding future financial and operating results, business outlook, strategic initiatives, and more.
– Various risks and uncertainties could materially affect Lowe’s ability to achieve the results expressed or implied by the forward-looking statements.
– Factors such as economic conditions, consumer spending, natural disasters, geopolitical conflicts, and other external elements could impact Lowe’s operations and financial results.
As Lowe’s navigates through the housing market headwinds and other uncertainties, the company’s focus on customer service and strategic investments will be critical in achieving its financial targets for the full year 2025. The affirmed outlook provides a roadmap for Lowe’s financial performance and shareholder value creation in the coming quarters.
### Income Statement
Amounts in Millions
| Three Months Ended May 2, 2025 | Three Months Ended May 3, 2024 | |
|---|---|---|
| Net Sales | $20,930 | $21,364 |
| Cost of Sales | $13,944 | $14,274 |
| Gross Margin | $6,986 | $7,090 |
| Selling, General & Admin. | $4,046 | $4,009 |
| Depreciation & Amortization | $446 | $428 |
| Operating Income | $2,494 | $2,653 |
| Interest – Net | $337 | $352 |
| Pre-tax Earnings | $2,157 | $2,301 |
| Income Tax Provision | $516 | $546 |
| Net Earnings | $1,641 | $1,755 |
| Weighted Avg. Common Shares | 559 | 571 |
| Basic EPS | $2.93 | $3.06 |
| Weighted Avg. Common Shares | 560 | 572 |
| Diluted EPS | $2.92 | $3.06 |
| Cash Dividends per Share | $1.15 | $1.10 |
| Accumulated Deficit | -$13,833 | -$15,188 |
### Balance Sheet
Amounts in Millions
| May 2, 2025 | May 3, 2024 | |
|---|---|---|
| Current Assets | ||
| Cash and Cash Equivalents | $3,054 | $3,237 |
| Short-term Investments | $368 | $264 |
| Merchandise Inventory – Net | $18,335 | $18,224 |
| Other Current Assets | $918 | $1,025 |
| Total Current Assets | $22,675 | $22,750 |
| Property | $17,636 | $17,531 |
| Operating Lease Right-of-Use | $3,799 | $3,829 |
| Long-term Investments | $300 | $306 |
| Deferred Income Taxes – Net | $118 | $115 |
| Other Assets | $844 | $834 |
| Total Assets | $45,372 | $45,365 |
| Liabilities and Shareholders’ Deficit | ||
| Current Liabilities | ||
| Current Maturities of Long-term Debt | $4,183 | $1,294 |
| Current Operating Lease Liabilities | $562 | $552 |
| Accounts Payable | $11,235 | $11,737 |
| Accrued Compensation and Employee Benefits | $853 | $870 |
| Deferred Revenue | $1,500 | $1,409 |
| Other Current Liabilities | $4,055 | $3,644 |
| Total Current Liabilities | $22,388 | $19,506 |
| Long-term Debt, excluding Current Maturities | $30,541 | $34,622 |
| Noncurrent Operating Lease Liabilities | $3,669 | $3,759 |
| Deferred Revenue – Lowe’s Protection Plans | $1,266 | $1,225 |
| Other Liabilities | $762 | $859 |
| Total Liabilities | $58,626 | $59,971 |
| Shareholders’ Deficit | ||
| Common Stock | $280 | $286 |
| Accumulated Deficit | -$13,833 | -$15,188 |
| Accumulated Other Comprehensive Income | $286 | $296 |
| Total Shareholders’ Deficit | -$13,254 | -$14,606 |
| Total Liabilities and Shareholders’ Deficit | $45,372 | $45,365 |
