Home improvement retailer Lowe’s has reported stronger-than-expected earnings in its fiscal second quarter, driven by higher sales from its home professional-focused business. The company announced a significant acquisition of Foundation Building Materials, a distributor of drywall, insulation, and other interior building products for large residential and commercial professionals.
Lowe’s CEO Marvin Ellison attributed the improved sales to better weather conditions in July, but he cautioned that it was too early to call this a trend. He predicted that activity will pick up when mortgage rates fall below 6%. The average rate for a 30-year, fixed-rate mortgage is currently above 6.5%.
To overcome the slower backdrop, Lowe’s has focused on home professionals, who are seen as a steadier and more lucrative customer base. The company made two pro-focused acquisitions in recent months: Artisan Design Group and Foundation Building Materials.
For the fiscal second quarter, Lowe’s reported earnings per share of $4.33, higher than the expected $4.24. Revenue rose to $23.96 billion, with comparable sales increasing 1.1% compared to the previous year. Online sales grew 7.5% during the quarter.
Lowe’s revised its full-year outlook to reflect the acquisition of Artisan Design Group. It expects total sales of $84.5 billion to $85.5 billion and comparable sales of flat to up 1% from the prior year.
The company faces higher costs from tariffs, with about 60% of its goods sourced from the U.S. Lowe’s is trying to diversify its imports to reduce reliance on a single country.
Lowe’s rival Home Depot missed Wall Street’s expectations for quarterly sales and earnings but stuck by its full-year forecast for 2.8% growth of total sales.
Source: https://www.cnbc.com/2025/08/20/lowes-low-q2-2025-earnings.html