Key Takeaways HD is expanding its Pro strategy to grow the addressable market and capture more Pro wallets.Home Depot is rolling out project planning and AI blueprint tools to digitize workflows for Pros.HD is integrating SRS and GMS to expand reach and enable cross-selling for larger Pro projects.As the home improvement market faces headwinds from consumer uncertainty, The Home Depot, Inc. (HD) continues to deepen its Pro strategy to expand its addressable market and capture a larger share of wallet from p ...

Core Insights - Lowe's Companies, Inc. reported second-quarter fiscal 2025 results with year-over-year growth in both revenue and earnings, returning to positive comparable sales during the quarter and updating its full-year outlook following the acquisition of Artisan Design Group (ADG) [1][11] Financial Performance - Adjusted earnings per share were $4.33, exceeding the Zacks Consensus Estimate of $4.23, marking a 5.6% increase from $4.10 in the same period last year [2] - Net sales reached $23,959 million, slightly missing the consensus estimate of $23,961 million but increasing from $23,586 million year-over-year, driven by a 1.1% rise in comparable sales [3] - Adjusted gross margin improved to 33.8%, up 37 basis points from the previous year, while adjusted selling, general and administrative expenses rose to $4,149 million, maintaining a stable percentage of net sales at 17.3% [4] - Adjusted operating income increased to $3,512 million from $3,404 million a year earlier, with the operating margin expanding 23 basis points to 14.7% [5] Strategic Developments - The acquisition of ADG enhances Lowe's ability to capture a larger share of Pro planned spending and strengthens its position in new home construction [6] - Lowe's announced an agreement to acquire Foundation Building Materials (FBM) for approximately $8.8 billion, which is expected to be accretive to adjusted earnings per share in the first full year post-close [7] Financial Health - As of the end of the quarter, Lowe's had cash and cash equivalents of $4,860 million, long-term debt of $30,548 million, and a shareholders' deficit of $11,400 million [8] - For the first half of fiscal 2025, operating cash flow totaled $7,610 million, with free cash flow at $6,597 million after capital expenditures of $1,013 million [9] Outlook - Management raised its full-year sales guidance to between $84.5 billion and $85.5 billion, with comparable sales expected to be flat to up 1% [11] - Earnings per share are projected to be in the range of $12.10 to $12.35, with adjusted earnings expected between $12.20 and $12.45 per share [12] Stock Performance - Lowe's shares have increased by 17.2% over the past month, outperforming the industry's rise of 13% [13]