Lowe's posts bright Q4 2024 earnings
On the heels of Home Depot's bright Q4 2024 report, Lowe's latest earnings paint a similarly sunny picture.
The N.C.-based home improvement juggernaut reported net earnings of $1.125 billion for the quarter ended Jan. 31, 2025, up 10.3 percent from $1.020 billion in the same quarter last year.
Total sales for the quarter were $18.553 billion, down slightly from $18.602 billion in last year's fourth quarter. For the full year, sales and earnings saw declines.
Comparable sales for the quarter increased 0.2 percent—the first comps increase in eight quarters. Lowe's says the boost was driven by high-single-digit Pro and online comparable sales, strong holiday performance, and rebuilding efforts in the wake of recent hurricanes but was partially offset by continued near-term pressure in DIY discretionary spending.
On an investor call, Lowe's CEO Marvin Ellison said the company is still facing down “a challenging home improvement market,” citing high mortgage rates and housing costs in general. However, he sees a a continued recovery gaining traction moving forward.
"Our results this quarter were once again better-than-expected, as we continue to gain traction with our Total Home strategic initiatives," said Ellison. "We remain confident in the long-term strength of the home improvement industry, and we are equally confident in our strategy to capitalize on the expected recovery.
The CEO announced an $80 million discretionary bonus to frontline employees.
Lowe's also unveiled its 2025 projections, including:
- Total sales of $83.5 to $84.5 billion.
- Comparable sales expected to be flat to up +1 percent as compared to prior year.
- Operating income as a percentage of sales (operating margin) of 12.3 percent to 12.4 percent.
- Net interest expense of approximately $1.3 billion .
- Diluted earnings per share of approximately $12.15 to $12.40.
- Capital expenditures of approximately $2.5 billion.
Get Lowe's full Q4 2024 earnings report here.
