Lowe’s Companies Inc (NYSE:LOW) stock fell 1.39% (As on May 22, 11:22:38 AM UTC-4, Source: Google Finance) after the company posted higher than expected results for the first quarter of FY25. Comparable sales declined 1.7%, as adverse weather conditions earlier in the quarter were partially balanced by mid-single-digit growth in Pro and online comparable sales. This performance outpaced the estimate of a 2% decline in comparable sales. The gross profit decreased 1.5% year over year to $6.99 billion, while the gross margin expanded 20 basis points to 33.4%. In the first three months of fiscal 2025, Lowe’s generated cash flow from operations of $3.38 billion. As of May 2, 2025, Lowe’s operated 1,750 stores, encompassing a total of 195.3 million square feet of retail selling space. The company maintained a strong focus on customer satisfaction, achieving the highest score in the J.D. Power 2025 U.S. Home Improvement Retailer Satisfaction Study. Additionally, Lowe’s continued its commitment to shareholder value with a dividend payment of $645 million.
LOW in the first quarter of FY25 has reported the adjusted earnings per share of $2.92, beating the analysts’ estimates for the adjusted earnings per share of $2.88, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue decline of 2 percent to $20.93 billion in the first quarter of FY25, beating the analysts’ estimates for revenue of $20.92 billion. The operating income decreased 6% to $2.49 billion, while the operating margin decreased 50 basis points to 11.9%. In the first quarter, online sales were up 6%, driven by increases in both traffic and conversion rates. The company has delivered positive comp sales in Building Materials and Rough Plumbing with strength in roofing, drywall, plumbing repair, water heaters and air circulation categories.
Management anticipates total sales to be between $83.5 billion and $84.5 billion compared with $83.7 billion for fiscal 2025. Comparable sales are expected to be flat to up 1%. Operating margin is projected to be between 12.3% and 12.4%. Lowe’s foresees FY 25 earnings per share to be in the band of $12.15-$12.40. It anticipates capital expenditures of approximately $2.5 billion for fiscal 2025.
Meanwhile, Lowe’s is accelerating the growth of Lowe’s Marketplace by announcing its partnership with Mirakl – a global leader in marketplace technology – bringing even more choice, convenience, and value to Lowe’s customers. Through its partnership with Mirakl, Lowe’s is positioned to scale its e-commerce business faster while allowing trusted marketplace sellers to easily manage their catalogs on Lowes.com