
Lowe's Companies Inc. reported a surprise rise in fourth-quarter same-store sales, marking the first increase in two years, as the home improvement retailer beat Wall Street's quarterly expectations. The company's revenue for the quarter reached $18.6 billion, surpassing the anticipated $18.3 billion, with adjusted earnings per share of $1.93, above the expected $1.84. This performance was driven by high-single-digit sales growth in its pro business and online segments, as well as strong holiday sales and rebuilding efforts following recent hurricanes. Lowe's stock rose 2.5% following the results, while shares were up 3.5% in premarket trading. Despite the positive quarterly results, Lowe's issued a cautious outlook for 2025, forecasting annual earnings largely below estimates due to cautious consumer spending. The company expects full-year 2025 comparable sales to be flat to up 1%, compared to analysts' estimates of a 1.13% rise. Lowe's also anticipates earnings per share to be between $12.15 and $12.40, below the consensus estimate of $12.49. The home improvement sector continues to face challenges, with consumers postponing renovation projects due to high interest rates. Home Depot, Lowe's main competitor, also reported a return to growth in same-store sales, with a 0.8% increase after eight quarters of declines, and forecasted a 1% growth for 2025. Home Depot's stock rose around 4% during early trading. Both companies noted that their pro business outpaces DIY, with Lowe's transactions remaining negative for 15 straight quarters.

Unlike Depot, Lowes transactions remain negative & have now been down for 15 straight quarters .- nearly 4 years. Like $HD, $LOW larger ticket ($500+) transactions improved, reflecting both greater Pro traction & better trends at higher end. $XLF $XLY https://t.co/irbRUfsUcx https://t.co/wppSf4XBxg
$LOW Lowe's Companies exec expects home improvement market to be roughly flat this year with Pro outpacing DIY
Lowe's highlights sluggish US home-related spending https://t.co/I0ZhDKKGu1