Financial Performance - Net earnings for the three months ended May 2, 2025, were $1,641 million, representing 7.84% of sales, compared to $1,755 million or 8.21% of sales for the same period in 2024[12] - The company reported a comprehensive income of $1,638 million for the three months ended May 2, 2025, compared to $1,751 million for the same period in 2024[12] - For the three months ended May 2, 2025, net earnings were $1,641 million, a decrease of 6.5% from $1,755 million for the same period in 2024[48] - Basic earnings per common share decreased to $2.93 from $3.06, reflecting a decline of 4.3% year-over-year[48] - Diluted earnings per common share also decreased to $2.92 from $3.06, marking a 4.6% decline compared to the previous year[49] Sales and Revenue - The company reported net sales of $20,930 million for the three months ended May 2, 2025, down from $21,364 million for the same period in 2024[24] - Net sales for the three months ended May 2, 2025, totaled $20,930 million, a decrease from $21,364 million in the same period of 2024[29] - Home Décor net sales accounted for 36.1% of total sales in 2025, while Building Products and Hardlines represented 31.3% and 30.6%, respectively[29] - Cost of sales as a percentage of net sales was 66.62% for the three months ended May 2, 2025, compared to 66.81% for the same period in 2024[53] Assets and Liabilities - Total current assets as of May 2, 2025, were $22,675 million, slightly down from $22,750 million on May 3, 2024[14] - The total liabilities as of May 2, 2025, were $58,626 million, a decrease from $59,971 million on May 3, 2024[14] - Cash and cash equivalents at the end of the period were $3,054 million, compared to $3,237 million at the end of the same period in 2024[17] - Merchandise inventory – net as of May 2, 2025, was $18,335 million, compared to $18,224 million on May 3, 2024[14] - Short-term restricted investments increased to $368 million in 2025 from $264 million in 2024, while long-term restricted investments decreased slightly to $300 million from $306 million[31] Cash Flow and Dividends - Net cash provided by operating activities for the three months ended May 2, 2025, was $3,379 million, down from $4,262 million for the same period in 2024[17] - The company declared cash dividends of $1.15 per share, totaling $645 million for the three months ended May 2, 2025[15] - The company declared cash dividends of $645 million, compared to $629 million in the same period last year[50] Deferred Revenue - Total deferred revenue for the company is $1,500 million in 2025, up from $1,409 million in 2024[26] - Retail deferred revenue reached $1,001 million in 2025, an increase from $889 million in 2024, while stored-value cards deferred revenue decreased to $499 million from $520 million[26] - Lowe's protection plans deferred revenue recognized into sales was $143 million for the three months ended May 2, 2025, compared to $139 million for the same period in 2024[28] Share Repurchase - Total shares repurchased for the three months ended May 2, 2025, amounted to 0.3 million shares at a cost of $72 million, compared to 3.0 million shares at a cost of $743 million in the same period of 2024[47] - The company has $10.8 billion remaining in its share repurchase program as of May 2, 2025[45] Market Risks - The company remains exposed to market risks, including changes in interest rates and commodity prices, which have not changed materially from previous disclosures[92]

Core Viewpoint - The market reacted negatively to Lowe's recent earnings report despite beating earnings estimates, primarily due to cautious guidance for future quarters [1][11]. Financial Performance - Lowe's reported net sales of over $20.9 billion, a 2% decline from the same period in 2024, with comparable sales down by 1.7% [3]. - Net income decreased to $1.64 billion ($2.92 per diluted share) from $1.76 billion in the previous year [3]. - Analysts had estimated revenue slightly under $21 billion and per-share net income of $2.88, expecting a 2.1% decline in same-store sales [5]. Competitive Landscape - Home Depot, Lowe's main competitor, reported a 9.5% increase in revenue while missing on net income, which may have influenced investor sentiment towards Lowe's [6]. Management Commentary - CEO Marvin Ellison noted that cautious consumer spending and adverse weather conditions negatively impacted results, particularly at the start of the spring season [7]. - CFO Brandon Sink expressed hope for improved discretionary spending and DIY traffic but indicated that current conditions are not expected to change significantly in 2025 [11][12]. Future Guidance - Lowe's maintained its 2025 sales guidance of $83.5 billion to $84.5 billion, with comparable sales expected to be flat to 1% higher than the previous fiscal year [9]. - The projected net income per share is between $12.15 and $12.40, aligning closely with analyst estimates [10]. Growth Strategy - The company announced the acquisition of Artisan Design Group for over $1.3 billion, which is expected to enhance its Pro offerings and overall fundamentals [13][14]. Investor Sentiment - The overall investor reaction to Lowe's quarterly performance was negative, reflecting concerns about the company's ability to reverse the downward trend in its business [15].

Core Insights - The article does not provide specific insights or analysis regarding any companies or industries, focusing instead on disclaimers and disclosures related to the author's position and affiliations [1][2]. Group 1 - There is no stock, option, or similar derivative position held by the author in any mentioned companies, nor are there plans to initiate such positions in the next 72 hours [1]. - The article expresses the author's personal opinions and is not influenced by compensation from any company [1]. - Seeking Alpha clarifies that past performance does not guarantee future results and that no investment recommendations are being made [2].

Financial Performance - Comparable sales decreased by 1.7%[2] - Gross margin increased to 33.4%, a 19 basis points increase compared to last year[2] - Operating margin decreased to 11.9%, a 50 basis points decrease compared to last year[2] - Diluted EPS decreased by 4.6% year-over-year to $2.92[2] - The company returned $645 million to shareholders through dividends[2] Sales Trends - Comparable transactions decreased by 5.4%[3] - The comparable average ticket increased by 1.7% to $105.20[3] - Online sales growth decreased by 2.6%[3] - Sales for tickets greater than $500 increased by 1.3%, while sales for tickets between $100-$500 decreased by 6.7%, and sales for tickets less than $100 decreased by 4.9%[3] Product Category & Pro Sales - 4 out of 14 product categories had comparable sales above the company average, including appliances, building materials, rough plumbing, and hardware[3] - Pro comparable sales increased by mid-single digits[4]

Group 1 - The U.S. stock market opened lower on May 21 due to weak demand in the 20-year Treasury bond auction, leading to a surge in bond yields and concerns over a new tax bill increasing the federal deficit [1][2] - The Dow Jones Industrial Average fell by 816.80 points, closing at 41,860.44, a decline of 1.91%. The S&P 500 dropped by 95.85 points to 5,844.61, down 1.61%, while the Nasdaq Composite decreased by 270.07 points to 18,872.64, a drop of 1.41% [1] - Among the S&P 500 sectors, ten out of eleven declined, with the real estate and healthcare sectors leading the losses at 2.63% and 2.37%, respectively, while the communication services sector rose by 0.67% [1] Group 2 - The 20-year Treasury bond auction had a final market yield of 5.047%, surpassing the previous average yield of 4.613% from the last six auctions, marking the first time since October 2023 that the yield exceeded 5% [2] - Concerns about the new tax and spending bill, which is expected to increase the federal deficit by approximately $3 trillion over the next decade, are influencing investor sentiment [2][3] - Major retailers reported disappointing earnings, contributing to stock market pressure, with Target lowering its full-year forecast, resulting in a 5.21% drop in its stock price [3]

Core Viewpoint - Lowe's reported a smaller-than-expected decline in first-quarter sales and plans to maintain competitive pricing, while not ruling out potential price increases due to tariffs [1][5][12] Sales Performance - The company experienced a 1.7% drop in same-store sales for the quarter ended May 2, which was better than analysts' average estimate of a 2% decline [12] - Steady demand from construction professionals contributed to the smaller-than-expected sales drop [6] Pricing Strategy - CEO Marvin Ellison emphasized the importance of competitive pricing to avoid losing market share to competitors [1] - CFO Brandon Sink indicated that profit margins are expected to remain flat this fiscal year, with tariff impacts anticipated in the second half of the year [2] Tariff Impact - The imposition of tariffs has raised concerns in the retail sector, with Walmart warning of potential price increases and Target lowering its sales and profit forecasts [3] - Lowe's and Home Depot have both been affected by tariff fears, which have negatively impacted consumer sentiment and renovation projects [4][8] Supply Chain Management - Lowe's has diversified its supply chain and increased local suppliers to mitigate the impact of U.S. tariffs [7] - Approximately 60% of Lowe's purchase volume comes from the U.S., while 20% is sourced from China, with specific items like holiday trees and tools being affected by tariffs [10] Future Outlook - The company expects comparable sales for 2025 to be flat to 1% higher, with earnings per share projected between $12.15 and $12.40 [11]

Core Insights - Lowe's Companies reported Q1 FY2025 sales of $20.9 billion, with comparable sales down 1.7%, while Pro sales showed mid-single-digit growth, offsetting weaker DIY demand [1][2] - The company affirmed its full-year sales outlook of $83.5-$84.5 billion for FY2025, despite challenging market conditions [2][10] Sales Performance - Q1 FY2025 sales reached $20.9 billion, with comparable sales declining by 1.7% [1] - Pro segment sales experienced mid-single-digit growth, countering the decline in DIY spending [3] Strategic Acquisitions - Lowe's announced the acquisition of Artisan Design Group (ADG) for $1.325 billion, expected to close in Q2 FY2025, targeting a fragmented $50 billion market [3][4] - ADG generated $1.8 billion in sales in 2024 and is projected to be EPS accretive in FY2026 [3][11] Digital Transformation - Online sales increased by 6% in Q1 FY2025, driven by improved traffic and conversion rates [2][5] - The company is in the early stages of deploying a third-party home improvement marketplace, enhancing product breadth without significant inventory risk [6][7] Supply Chain Management - 60% of purchases are sourced domestically, with China accounting for approximately 20% due to diversification efforts [8][9] - The company is actively working to further reduce dependency on China and mitigate tariff risks through robust supplier relationships [9] Future Outlook - Management reaffirmed FY2025 sales guidance of $83.5-$84.5 billion, with comparable sales expected to be flat to up 1% [10] - Operating margin is forecasted at 12.3%-12.4%, with diluted EPS outlook of $12.15-$12.40 [10]

Core Insights - Lowe's is enhancing its online marketplace through a partnership with Mirakl, aiming to provide more options and convenience for DIY and professional customers [1][3] - The marketplace features a wide range of products from value to premium, allowing Lowe's to expand into new product categories [2][4] - The collaboration with Mirakl is expected to accelerate Lowe's e-commerce growth and improve the management of third-party seller catalogs [3][5] Company Overview - Lowe's operates over 1,700 home improvement stores and serves approximately 16 million customer transactions weekly in the U.S. [8] - The company reported total fiscal year 2024 sales exceeding $83 billion [8] - Lowe's employs around 300,000 associates and is committed to community support through various programs [8] Marketplace Features - Lowe's Marketplace offers products from verified sellers, including small businesses and nationally recognized brands, ensuring quality and alignment with Lowe's standards [6] - Members of the MyLowe's Rewards loyalty program can earn points on marketplace purchases, enhancing customer engagement [5] - All marketplace products are available for home delivery and can be returned to any of Lowe's stores, providing added convenience [5]

Market Overview - U.S. futures are down across the board, with the Dow down 345 points (-0.81%), S&P 500 down 38 points (-0.64%), Nasdaq down 146 points (-0.68%), and Russell 2000 down 21 points (-1.02%) [2] - Major indexes have been flat over the past five trading days, with the Dow showing a slight increase of 1% over the past month, while all indexes are up double-digits [2] Q1 Earnings Reports - Target's Q1 earnings were disappointing, with earnings of $1.30 per share missing the Zacks consensus of $1.65 by 19.75%. Revenues of $23.85 billion were 1.58% short of expectations. The company has cut its growth forecast to negative from slightly positive [3] - Lowe's reported better-than-expected Q1 results, with earnings of $2.92 per share beating the Zacks consensus by 4 cents, and revenues of $20.93 billion slightly exceeding the anticipated $20.92 billion. Shares are up 1.75% in early trading [4] - The TJX Companies modestly beat expectations with earnings of 92 cents per share, 2 cents above estimates, and revenues of $13.11 billion, surpassing the anticipated $13.0 billion. Comparable sales grew by 3% year over year [5] - VF Corp. reported mixed results, with a narrower-than-expected loss of 13 cents per share compared to the estimated 15 cents, but revenues of $2.14 billion fell short of the $2.18 billion consensus. Shares are down 14% due to a challenging macro environment [6] Upcoming Earnings - Urban Outfitters is expected to report solid growth in both top and bottom lines year over year. Additionally, Snowflake and Zoom Communications will also release their quarterly results later today [7]

Core Viewpoint - Lowe's Companies has reaffirmed its 2025 outlook and capital return strategy, indicating a potential continuation of its stock price uptrend despite mixed quarterly results [1][8]. Financial Performance - Revenue contracted by 2.2% year-over-year, missing consensus estimates, with comparable sales down 1.7% due to weather and consumer-related weaknesses, although growth was noted in professional and online segments [6][8]. - GAAP earnings reported at $2.92, slightly ahead of consensus estimates, despite a faster contraction than revenue [7]. Guidance and Forecast - Lowe's forecasts revenue between $83.5 billion and $84.5 billion for 2025, with margins expected to remain strong [8]. - The 12-month stock price forecast is set at $276.17, indicating a potential upside of 20.97% based on 25 analyst ratings [9][12]. Shareholder Returns - The company has a dividend yield of approximately 2.01%, with a low payout ratio of about 40% of the 2025 earnings forecast, and a 5% increase in the 2024 payment is anticipated [10][11]. - Share repurchases have slowed but remain sufficient to offset share-based compensation, resulting in a net 2% decline in shares compared to the previous year [10]. Market Sentiment - Analysts maintain a Moderate Buy rating on Lowe's stock, with ongoing institutional buying expected to provide bullish momentum [12][13]. - Recent price target reductions from some analysts may limit potential gains, but overall coverage remains firm with a bullish bias [12].