Financial Performance - Net earnings for Q3 2025 were $1.6 billion, with diluted EPS of $2.88, down from $2.99 in Q3 2024[1] - Total sales for the quarter reached $20.8 billion, an increase from $20.2 billion in the prior-year quarter, with comparable sales up 0.4%[1] - Adjusted diluted EPS for the quarter increased by 5.9% to $3.06, excluding acquisition-related expenses[1] - Net earnings for the nine months ended October 31, 2025, were $5,654 million, slightly down from $5,833 million for the same period in 2024, a decrease of about 3.1%[19] Sales and Growth - Online sales grew by 11.4%, contributing to double-digit growth in home services and continued growth in Pro sales[1] - Lowe's updated its full-year 2025 outlook, projecting total sales of approximately $86.0 billion, with adjusted diluted EPS expected to be around $12.25[11] Expenses and Investments - The company recognized $129 million in pre-tax expenses related to the acquisitions of Foundation Building Materials and Artisan Design Group[1] - Capital expenditures for the year are projected to be up to $2.5 billion[11] - The company recognized pre-tax expenses of $129 million related to the acquisition of Artisan Design Group and Foundation Building Materials during fiscal 2025[21] - The company reported a net cash used in investing activities of $11,687 million for the nine months ended October 31, 2025, compared to $1,320 million in the prior year, indicating a significant increase in investment outflows[19] Assets and Liabilities - Total assets increased to $53,453 million as of October 31, 2025, up from $44,743 million on November 1, 2024, representing a growth of approximately 19.1%[18] - Total liabilities rose to $63,835 million as of October 31, 2025, compared to $58,162 million on November 1, 2024, an increase of about 9.5%[18] - Current liabilities remained stable at $19,451 million as of October 31, 2025, compared to $19,447 million on November 1, 2024, showing minimal change[18] Cash Flow and Dividends - The company reported net cash provided by operating activities of $8,297 million for the nine months ended October 31, 2025, compared to $8,714 million in the prior year, a decline of approximately 4.8%[19] - Cash and cash equivalents decreased to $621 million at the end of the period from $3,271 million at the beginning, a decrease of approximately 81%[19] - The company paid $673 million in dividends during the quarter[3] Store Operations - The company operated 1,756 stores as of October 31, 2025, covering 195.8 million square feet of retail space[2] - Merchandise inventory decreased to $17,183 million as of October 31, 2025, from $17,566 million on November 1, 2024, a decline of about 2.2%[18] Tax Rate - The effective income tax rate is expected to be approximately 24.0%, down from a previous estimate of 24.5%[11]

Group 1: Market Performance - The US equity market continued its rally in Q3, with the S&P 500 returning 8.1% and the Russell 1000 Value surging 5.3% [1] - The SCCM Value Equity Strategy returned 6.9% (gross) and 6.8% (net) in Q3, outperforming the Russell 1000 Value's 5.3% return but underperforming the S&P 500's 8.1% return [1] - Year-to-date, the strategy returned 13.0% (gross), compared to the Russell 1000 Value's +11.7% and the S&P 500's +14.8% [1] Group 2: Lowe's Companies, Inc. Performance - Lowe's Companies, Inc. (NYSE:LOW) experienced a one-month return of -9.84% and a 52-week loss of 16.52% [2] - As of November 18, 2025, Lowe's stock closed at $219.57 per share, with a market capitalization of $123.14 billion [2] - The company reported strong Q2 earnings with comparable sales up 1.1%, its best result since 2022, driven by growth in both Pro and DIY segments [3] Group 3: Strategic Developments - Lowe's gross margins expanded by approximately 40 basis points due to improved product mix and cost control, with July comparable sales rising by 4.7% [3] - The company announced an $8.8 billion acquisition of Foundation Building Materials, which broadens its Pro customer base and supports its Total Home strategy [3] - Despite its potential, Lowe's is not among the 30 most popular stocks among hedge funds, with 75 hedge fund portfolios holding its stock at the end of Q2, up from 68 in the previous quarter [4]

分组1 - Lowe's reported quarterly earnings of $3.06 per share, exceeding the Zacks Consensus Estimate of $2.97 per share, and up from $2.89 per share a year ago, representing an earnings surprise of +3.03% [1] - The company posted revenues of $20.81 billion for the quarter ended October 2025, matching the Zacks Consensus Estimate and increasing from $20.17 billion year-over-year [2] - Over the last four quarters, Lowe's has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [2] 分组2 - The stock has underperformed, losing about 11% since the beginning of the year, while the S&P 500 has gained 12.5% [3] - The current consensus EPS estimate for the coming quarter is $2.07 on revenues of $19.45 billion, and for the current fiscal year, it is $12.29 on revenues of $85.15 billion [7] - The Zacks Industry Rank for Retail - Home Furnishings is in the top 37% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Core Viewpoint - Lowe's Companies, Inc. reported a lackluster outlook for annual profits and sales growth, similar to its competitor Home Depot, due to economic uncertainty and high inflation affecting consumer spending on home renovations [1][2]. Financial Performance - For the third quarter, Lowe's revenue was $20.81 billion, slightly below the market expectation of $20.82 billion, while adjusted earnings per share were $3.06, exceeding the average market forecast of $2.97 [1]. - The company raised its full-year sales forecast to $86 billion, up from the previous estimate of $84.5 billion to $85.5 billion, attributed to a recent acquisition [1]. - The adjusted earnings per share forecast was lowered to approximately $12.25, down from the previous range of $12.20 to $12.45 [2]. Market Conditions - The home improvement industry continues to face challenges, including a slowing real estate market and rising borrowing costs, which have impacted the sector for over two years [2]. - Despite a slight decrease in mortgage rates following Federal Reserve rate cuts, various cost pressures on households have weakened the anticipated demand recovery [2]. Strategic Initiatives - Lowe's has invested billions in acquiring Foundation Building Materials and Artisan Design Group to enhance its appeal to professional contractors, aligning its strategy with that of Home Depot [3]. - The company expects same-store sales to remain flat year-over-year, a revision from the previous expectation of flat to 1% growth [4]. Sales Trends - Despite the challenges, Lowe's CEO noted that November sales achieved positive year-over-year growth, even without significant storm impacts affecting demand [4]. - According to data compiled by LSEG, same-store sales grew by 0.4% for the quarter ending October 31, surpassing the average analyst expectation of 1% [4].

Core Insights - The home improvement sector is facing challenges due to a weak housing market and economic uncertainty, impacting major players like Home Depot and Lowe's [1][6]. Home Depot - Home Depot's Q3 net sales increased by 2.8% year over year to $41.4 billion, but this figure includes $900 million from the acquisition of GMS Inc. Without this, total sales were essentially flat compared to the previous year [2]. - Comparable sales growth was 0.2%, with a slight 0.1% growth in the U.S. Gross margin remained flat at 33.4% [3]. - Operating income fell by 1.2% year over year to $5.4 billion, and net income declined by 1.3% to $3.6 billion [3]. - CEO Ted Decker noted that while underlying demand remained stable, an anticipated increase in demand did not occur, attributing this to consumer uncertainty and housing market pressures [4]. Lowe's - Lowe's reported a 3% year-over-year increase in total sales to $20.8 billion, with comparable sales growing by 0.4%, driven by strong pro sales and an 11.4% increase in online sales [5]. - The retailer experienced positive comparable sales in 10 out of 14 product categories, including appliances and flooring [5]. - Similar to Home Depot, Lowe's saw a decline in profits, with operating income falling over 2% to $2.5 billion and net income decreasing by 4.7% to $1.6 billion [6]. Market Trends - Big-ticket purchases at Home Depot grew by 2.3%, but there is a noted decline in engagement for larger discretionary projects, which are typically financed by customers [7]. - Both Home Depot and Lowe's have updated their full-year outlooks, including lowering profit forecasts due to ongoing market uncertainties [7].

Lowe’s Cos. reported profit that topped expectations on a pickup in online sales and growth in demand from professional contractors. Adjusted earnings per share were $3.06 in the third quarter, the company said in a statement Wednesday, compared with the $3.00 estimate of analysts surveyed by Bloomberg. Most Read from Bloomberg Lowe’s reported positive same-store sales growth for a second consecutive quarter on strength in its digital channel and in home services. It saw “continued growth” in sales to p ...

Financial Performance - Lowe's profit exceeded expectations [1] Market Trends - Consumer spending on home renovations contributed to Lowe's profit [1]

Core Viewpoint - Lowe's reported higher third-quarter sales, leveraging its online business to mitigate challenges in the home improvement market [1] Group 1: Company Performance - The increase in sales during the third quarter indicates a successful adaptation to market conditions [1] - The online business has played a crucial role in offsetting weaknesses in the traditional home improvement sector [1] Group 2: Market Context - The home improvement market is currently experiencing a downturn, which has affected many retailers in the sector [1] - Lowe's ability to maintain sales growth amidst these challenges highlights its competitive positioning and strategic focus on e-commerce [1]

Lowe's stock bounces after third-quarter sales of stores open more than a year rise more than expected, but also outpace those of rival Home Depot. ...

Core Insights - Lowe's reported a year-over-year sales increase for the quarter but slightly lowered its full-year profit outlook due to a challenging economic environment [1][3] - The company expects full-year total sales to reach $86 billion, an increase from previous expectations of $84.5 to $85.5 billion, attributed to a recent acquisition [2] - Comparable sales are expected to be flat compared to the previous year, down from an earlier forecast of flat to up 1% [2] Financial Performance - For the fiscal third quarter, Lowe's net income decreased to $1.62 billion, or $2.88 per share, compared to $1.7 billion, or $2.99 per share in the same period last year [3] - Revenue for the quarter increased from $20.17 billion in the year-ago quarter to $20.81 billion, slightly below the expected $20.82 billion [3][9] - The adjusted earnings per share for the full year is now expected to be approximately $12.25, at the lower end of the previous range of $12.20 to $12.45 [3] Strategic Moves - Lowe's is focusing on attracting more business from contractors and home professionals to counteract weaker do-it-yourself sales [4][5] - The company recently acquired Foundation Building Materials for about $8.8 billion, which is expected to enhance its offerings to large residential and commercial professionals [5] - Earlier in the year, Lowe's announced the acquisition of Artisan Design Group for nearly $1.33 billion, further emphasizing its strategy to cater to professional markets [6] Market Context - The home improvement market is anticipated to remain roughly flat, as indicated by Lowe's CFO, who noted that the company's strategy, rather than an improving industry backdrop, will drive sales [7] - Competitor Home Depot has also lowered its full-year profit forecast, citing similar challenges such as a tough housing market and consumer uncertainty [4]