Lowe's(US:LOW) Zhi Tong Cai Jing·2025-05-21 12:10Core Insights - Lowe's reported better-than-expected same-store sales despite weakened consumer confidence and economic volatility, with a same-store sales decline of 1.7% for the quarter ending May 2, but expects this key sales metric to remain flat or grow by up to 1% for the year [1] - The company's revenue for the quarter was $20.93 billion, a year-over-year decline of 2.2%, which fell short of market expectations, while earnings per share were $2.92, exceeding market expectations by $0.05 [1] - The decline in same-store sales was partially attributed to adverse weather at the beginning of the quarter, but growth in online business and professional contractor (Pro) services helped mitigate this impact [1] Industry Context - Despite economic turmoil, U.S. consumers have not significantly reduced or altered home spending, as indicated by the performance of Lowe's and its main competitor, Home Depot [1] - High interest rates have led many consumers to postpone large projects while still engaging in smaller projects, which has helped both companies meet or slightly exceed Wall Street expectations [1] - Home Depot executives noted that the worst economic scenarios seem to be behind them, aided by a diversified supply chain, and they expect to maintain current price levels amid stable spending and limited stockpiling due to tariffs [1] Performance Guidance - Lowe's anticipates total sales for 2025 to be between $83.5 billion and $84.5 billion, with market expectations averaging $84.31 billion; comparable sales are expected to remain flat or grow by 1% [3] Operational Footprint - As of May 2, 2025, Lowe's operates 1,750 stores with a retail space of 195.3 million square feet [4]