This story was originally published on CX Dive. To receive daily news and insights, subscribe to our free daily CX Dive newsletter. Dive Brief: Lowe’s AI virtual assistants have boosted customer satisfaction and contributed to sales growth, executives said on a Q3 2025 earnings call Wednesday. Mylow and Mylow Companion, the customer-facing and employee-facing virtual assistants Lowe’s launched this spring, are answering nearly 1 million questions per month. Customer satisfaction scores increase 2% amon ...

Core Insights - Lowe's Companies, Inc. is implementing a "Total Home" strategy that integrates artificial intelligence (AI) to enhance customer engagement and associate productivity [1] Financial Performance - In Q2 of fiscal 2025, Lowe's reported sales of $24 billion, reflecting a year-over-year increase of 1.1%, driven by strong performance in Pro and DIY segments [2][10] - Online sales increased by 7.5%, attributed to an improved digital experience and the Lowe's Rewards program [2] Innovations and Technology - The Mylow Companion app, an AI-powered tool for store associates, provides fast and accurate product recommendations, enhancing customer satisfaction and associate productivity [3][10] - Mylow, a virtual advisor for customers, assists shoppers in navigating home improvement projects, catering to both DIY enthusiasts and professionals [4] Strategic Acquisitions - Lowe's Pro strategy is bolstered by the acquisition of Foundation Building Materials (FBM), which includes AI Blueprint Takeoff technology that automates quantity extraction from digital blueprints, improving project planning efficiency [5][10] - FBM's extensive branch network and mobile app enhance Lowe's reach in key regions, contributing to growth in the Pro market valued at $250 billion [6] Competitive Landscape - Competitors like Home Depot are also leveraging AI to improve customer experience and operational efficiency, including enhanced search functionality and optimized delivery operations [7] - Floor & Decor Holdings is investing significantly in IT infrastructure to strengthen its omnichannel retail operations [9] - Williams-Sonoma is deploying AI across customer experience, supply chain optimization, and internal operations, aiming for improved productivity and cost savings [11][12]

Core Insights - Lowe's Companies, Inc. is integrating artificial intelligence into its operations as part of its "Total Home" strategy to enhance customer engagement and associate productivity [1] - The introduction of the Mylow Companion app aims to provide frontline associates with instant product recommendations, improving service quality and customer satisfaction [2][10] AI Integration and Customer Experience - The Mylow Companion app allows employees to offer accurate product recommendations, enhancing the shopping experience for both DIY customers and professionals [2][10] - Lowe's consumer-facing technology, including the Mylow virtual advisor, provides step-by-step project guidance, creating a seamless transition from planning to purchase [3][6] Operational Efficiency and Associate Productivity - Associates utilize the Mylow Companion app to broaden their knowledge across departments, reflecting Lowe's commitment to continuous productivity improvement [4] - The integration of AI Blueprint technology from Foundation Building Materials will enable the Pro Desk to automatically extract material quantities from digital plans, improving accuracy and efficiency for larger projects [5][10] Competitive Landscape - Home Depot is also leveraging AI to enhance customer experience through improved search functionality and optimized delivery operations, including a "ship from best location" system [7][8] - Floor & Decor is investing in a new ERP system and plans to allocate $35-$40 million for IT infrastructure and e-commerce initiatives, focusing on operational efficiency [9][11] - Williams-Sonoma is implementing AI across customer experience, supply-chain optimization, and internal operations, utilizing a proprietary AI platform for various functions [11][12][13]

Group 1: Lowe's Strategic Initiatives - Lowe's Companies, Inc. is enhancing its competitive edge through technology integration and loyalty programs, introducing "Mylow," an AI-powered Home Improvement Virtual Advisor, and a redesigned MyLowe's Pro Rewards program as part of its "Total Home" strategy [1][4] - Mylow, developed with OpenAI, offers step-by-step project guidance and is integrated into Lowe's app and website, facilitating immediate purchases of recommended tools and materials [2][9] - The revamped Pro Rewards program simplifies enrollment, includes a Spanish-language option, and allows points to be earned from the first purchase, aiming to increase wallet share among Pro customers [3][4] Group 2: Market Context and Competitor Strategies - In a selective spending environment, Lowe's is betting on AI and loyalty upgrades to deepen customer relationships and improve conversion rates, with success dependent on Mylow's recommendation accuracy and the Pro Rewards program's effectiveness [4] - The Home Depot is enhancing its in-store competitiveness by equipping associates with advanced digital tools to improve customer satisfaction and sales performance [5] - Floor & Decor is focusing on both digital and in-store strategies, broadening design services and customer offerings to enhance its competitive advantage [6][7] - Williams-Sonoma is leveraging a digital-first strategy, advancing mobile re-platforming and AI personalization to drive growth and improve e-commerce sales [8]

Core Insights - Home Depot's business model is heavily centered around do-it-yourself (DIY) projects, which include a range of home improvement tasks that customers undertake without professional help [1] - The company's first-quarter fiscal 2025 results indicate resilience, but demand for DIY projects remains weak due to high interest rates affecting larger remodeling projects [2] - Home Depot is investing in technology, including AI tools, to enhance customer and associate engagement [3] - The Pro segment is showing stronger sales compared to DIY, with improvements in trade credit and logistics [4] - Home Depot faces significant competition from Lowe's and Floor & Decor in the DIY market [5][6][7] - Home Depot's stock has declined by 4.8% year-to-date, which is better than the industry's decline of 7.9% [8] - The company's forward price-to-earnings ratio is 23.65, higher than the industry's 20.89 [10] - Earnings estimates for fiscal 2025 indicate a decline of 1.3%, while fiscal 2026 estimates suggest a growth of 9.1% [12] Company Performance - DIY sales are sluggish due to high rates impacting large remodeling projects and customer financing [9] - The Pro segment outperformed DIY in Q1, with early results from trade credit and logistics improvements [9] - Home Depot's investments in AI tools aim to boost associate and customer engagement [9] Competitive Landscape - Home Depot competes with Lowe's, which is also facing pressure from weak big-ticket demand but is enhancing engagement through technology [6] - Floor & Decor is emerging as a strong competitor, particularly in flooring, appealing to value-conscious DIYers [7] Financial Metrics - Home Depot's stock has lost 4.8% year-to-date, while the industry has declined by 7.9% [8] - The forward price-to-earnings ratio stands at 23.65, compared to the industry's 20.89 [10] - Earnings estimates for fiscal 2025 show a decline of 1.3%, while fiscal 2026 estimates indicate a growth of 9.1% [12]

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]

Core Insights - Lowe's has launched Mylow Companion, an AI tool designed to enhance customer service and expedite associate onboarding, marking a significant advancement in retail technology [1][2][4] Group 1: Product Features - Mylow Companion is purpose-built for associate sales floor devices, providing quick access to product details, project advice, and inventory information to assist home improvement customers [3][4] - The tool utilizes generative AI to improve associate knowledge, enabling them to confidently assist customers regardless of their experience level [4][5] Group 2: Industry Leadership - Lowe's positions itself as a leader in the home improvement industry by being the first retailer to implement an AI tool at scale, enhancing the overall customer and associate experience [4][5][7] - The launch of Mylow Companion follows the introduction of Mylow, Lowe's customer-facing virtual advisor, showcasing the company's commitment to innovation in retail technology [5][7] Group 3: Collaboration and Technology - Mylow Companion was developed in collaboration with OpenAI, leveraging advanced AI capabilities to streamline the customer assistance process [6][5] - Associates can interact with Mylow Companion using natural language prompts, including voice-to-text functionality for hands-free use [6][5] Group 4: Company Overview - Lowe's Companies, Inc. operates over 1,700 home improvement stores and serves approximately 16 million customer transactions weekly, with total fiscal year 2024 sales exceeding $83 billion [9]

Core Viewpoint - Home Depot has launched a generative AI tool called Magic Apron, aimed at enhancing customer experience in home improvement projects, which could potentially impact its stock performance positively in the long term [1][2][3]. Stock Forecast - The 12-month stock price forecast for Home Depot is $435.85, indicating a 20.08% upside from the current price of $362.96, with a moderate buy rating based on 31 analyst ratings [1]. Product Launch and Market Position - Magic Apron is integrated into the Home Depot mobile app and website, providing customers with reliable answers for their DIY projects, which could improve customer engagement [2]. - The launch of similar AI tools by competitors like Lowe's indicates that generative AI is becoming a standard expectation in the retail sector rather than a disruptive innovation [4]. Financial Performance and Challenges - Home Depot reported a year-over-year increase in earnings per share (EPS) but acknowledged that the housing market remains weak, which may delay the effectiveness of new tools like Magic Apron [5][6]. - The company faces challenges from proposed tariffs that could adversely affect profitability, with a net margin of 9.28% being below the 2019 level of 10.2% [7][8]. Stock Performance and Investor Sentiment - Home Depot's stock has seen a decline of 2.79% over the past year, with a recent downturn of 5.8% in 2025, despite a 2.55% dividend yield [10]. - Over the past five years, the stock has delivered a total return of 122%, indicating strong long-term growth potential [11]. - The current price-to-earnings (P/E) ratio of around 24x is not considered expensive compared to its three-year average, but investor sentiment remains cautious, particularly in the retail sector [9]. Strategic Positioning - Home Depot's commitment to innovation through tools like Magic Apron enhances its omnichannel retail experience, which is expected to drive revenue generation and free cash flow in bullish markets [12].

Core Insights - Lowe's has launched Mylow, the first AI-powered home improvement virtual advisor, aimed at enhancing customer service and providing real-time answers to home improvement questions [2][4][5] Company Overview - Lowe's Companies, Inc. is a FORTUNE® 50 home improvement company with over 1,700 stores and approximately 300,000 associates, serving around 16 million customer transactions weekly in the U.S. [8] - The company reported total fiscal year 2024 sales exceeding $83 billion [8] Product Features - Mylow offers customers the ability to ask home improvement questions and receive immediate, conversational answers, making it easier for DIYers to navigate complex projects [4][5] - The virtual advisor links project insights to product discovery, helping customers find the right tools and materials for their projects [5][7] - Mylow is currently available on desktop and mobile web for MyLowe's Rewards members, with plans for voice capabilities and integration into Lowe's app later this year [7] Technology Collaboration - The development of Mylow involved collaboration with OpenAI, reflecting Lowe's commitment to leveraging emerging technologies to improve customer experience [4][5]