In the aisles at Lowe’s
Lowe’s first quarter saw sales decline 4.1 percent, but the company’s earnings call produced several bright spots.
It started with the CEO’s description of the mid- to long-term environment for home improvement in general.
“Real wage growth and home price appreciation are solid,” said CEO Marvin Ellison. “But the home improvement customer is still on the sidelines, expressing concerns about higher cost of living and the state of the overall economy. And while the near term is still challenging to read, we remain confident in the medium to long-term outlook for our industry, as our core demand drivers are all supportive of growth.”
Operational highlights included the roll out of the retailer’s DIY loyalty program called MyLowe’s Rewards. It offers MyLowe’s money and free standard shipping for loyalty members, as well as other perks. Lowe’s also rolled out expanded same-day delivery options through partnerships with DoorDash and Shipt. These providers join the already active Instacart, as well as lowes.com same-day delivery options, serviced by last-mile partner OneRail.
Arguably the most important activity from the retailer’s first quarter took place in the aisles and on the shelves, where the retailer meets the customer face to face. In this area, Executive Vice President of Merchandising Bill Boltz hit on a number highlights.
First was success with the pro customer. Boltz and the executive team pointed to positive broad-based pro comps across all three geographic divisions.
There was also positive comp sales on a one-year and two-year basis in lawn and garden. “Growth was driven by smaller-ticket projects in landscape products and live goods, which resulted in increases in both comp sales and transactions in these categories,” Boltz said.
The retailer’s private label Sta-green brand was “gaining traction” in the lawn care aisle, he added.
And he elaborated on the outdoor power lineup, boasting of a brand portfolio that included EGO, SKIL, Kobalt, Husqvarna, Craftsman, and John Deere. The company added Toro to the list in 2024.
“These strong brands helped us deliver positive comp sales in both gas and battery-powered walk-behind lawnmowers, as well as handheld outdoor power equipment,” Boltz said.
The merchant took time to promote a handful of Toro features. The SmartStow innovation allows home owners to store their mower upright, reducing the storage footprint by up to 70%. Briggs and Stratton technology prevents oil leaks when the machine is stored upright. And Personal Pace is a self-propelled system that propels the mower at the speed the user is walking.
He pointed to strength in roofing, concrete and block, drywall, and insulation. And repair and maintenance categories, such as water heaters, also continue to perform well, he said.
Lowe’s has long described itself as the appliance leader, and Boltz promoted the company’s ability to provide next-day delivery in most markets—“which is an important option for a customer replacing a broken appliance.” He added: “Average selling prices remain pressured as we cycle the reintroduction of pre-pandemic promotions across the industry, as well as the continued slowdown in discretionary demand.”
