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Lowe’s reported its Q1 2025 financials, marking $20.9 billion in total sales, a 1.04% decrease year over year. Comparable store sales for the quarter decreased 1.7% as unfavorable weather early in the quarter was offset by mid-single-digit pro and online comparable sales growth. Net earnings were $1.6 billion, a decrease of 6.5% from Q1 2024.
“Despite near-term uncertainty and housing market headwinds, our team’s unwavering focus on exceptional customer service has elevated satisfaction scores and earned Lowe’s the No. 1 ranking in Customer Satisfaction Among Home Improvement Retailers by J.D. Power,” says Marvin Ellison, Lowe’s chairman, president and CEO. “Strategic investments in technology, inviting store environments and our dedicated associates continue to solidify our commitment to serving our customers and communities. I’d like to extend my appreciation to our front-line associates for the dedication and hard work, especially during the busy spring season.”
During Q1 2025, gross margin for the company increased slightly to 33.38%, representing an increase of 57 basis points from Q1 2024.
Lowe’s reaffirmed its outlook for full year 2025:
- Total sales of $83.5 to $84.5 billion
- Comparable sales expected to be flat to up +1% as compared to the prior year
- Diluted earnings per share of approximately $12.15 to $12.40
During the Lowe’s Q1 2025 earnings call yesterday, Ellison shared that roughly 60% of Lowe’s product sourcing originates in the U.S., 20% of purchase volume is concentrated in China and the company is continuing the diversify its global sourcing strategy.
“Although we’re pleased with this reduced dependency, we’re not satisfied, and we’re working to accelerate our diversification efforts,” Ellison says. “Our global sourcing team has identified exciting diversification opportunities in the U.S. and around the globe that we’re actively pursuing.”
Ellison shared that although it is still early in its implementation, Lowe’s recently launched Lowe’s Marketplace in partnership with Mirakl, a global marketplace technology. Through the marketplace, Lowe’s will be able to add additional vendors and product offerings, without having the carry the inventory or invest in new fulfillment centers.
Strong categories for Lowe’s in Q1 2025 were patio furniture, fertilizer, grass seed and irrigation and generators, while Lowe’s saw positive comparable store sales in building materials, rough plumbing, roofing, drywall, plumbing repair, water heaters and air circulation products.
Strong categories for Lowe’s in Q1 2025 were patio furniture, fertilizer, grass seed and irrigation and generators, while Lowe’s saw positive comparable store sales in building materials, rough plumbing, roofing, drywall, plumbing repair, water heaters and air circulation products.
The company launched the MyLowe app for store associates, built on the same technology as the consumer version, which gives employees immediate access to product details and advice, as well as inventory information.
“With this knowledge that their fingertips, our associates can quickly feel confident in answering customers’ questions, even if they’ve just started in the store, or been asked to cover a new department,” says Joe McFarland, Lowe’s executive vice president of stores.
