Lowe’s Companies (NYSE: LOW) stock jumped about 3% in pre-market trading on Wednesday following the release of better-than-expected fourth-quarter results. However, its cautious 2025 outlook kept the celebration in check.
Lowe’s posted adjusted earnings of $1.93 per share on sales of $18.55 billion, topping analysts’ estimates of $1.84 per share and $18.29 billion, according to Visible Alpha. The home improvement retailer also notched a 0.2% increase in comparable store sales—the first year-over-year rise since the third quarter of 2022. Analysts had braced for a 1.58% decline, making the gain a pleasant surprise.
The North Carolina-based company pointed to several drivers behind the uptick. High-single-digit growth in sales to professional contractors and online channels led the charge, while a strong holiday performance and rebuilding efforts after recent hurricanes added fuel. However, Lowe’s flagged continued softness in discretionary spending from DIY customers as a lingering headwind.
For 2025, Lowe’s Companies (NYSE: LOW) sees sales landing between $83.5 billion and $84.5 billion, with comparable store sales ranging from flat to a 1% increase. Earnings per share are expected to fall between $12.15 and $12.40. Those figures underwhelmed Wall Street, where analysts had projected $84.67 billion in sales, a 1.21% rise in comparable sales, and earnings of $12.57 per share.
The report comes a day after rival Home Depot (NYSE: HD) shared its own fourth-quarter results. Like Lowe’s, Home Depot beat expectations, with comparable sales finally turning positive after eight straight quarters of declines. But mirroring that cautious tone, its full-year outlook also landed softer than Wall Street had hoped, suggesting both giants see a bumpy path ahead in the home improvement market.
