Lowe's CEO calls up recent housing market challenges

Lowe's Companies, Inc. (NYSE:LOW) reported different results for the first quarter of fiscal 2025 on Wednesday.

The company released adjusted earnings of $2.92 per share, surpassing analyst consensus estimates of $2.89.

Revenue for the quarter fell 2% year-on-year to $20.93 billion, which missed the analyst consensus estimate of $20.94 billion.

Comparable sales fell 1.7%, with early weather headwinds partially offset by mid-digit growth in occupations and online sales.

Also read: Lowe's Lowdown? Analysts believe sales are weaker than consensus and it is difficult to quote weather

Gross profit margin expanded to 33.4% by 19 basis points, while operating income fell to $2.49 billion from $2.65 billion last year. Operating margins shrank by 50 basis points to 11.9%.

As of May 2, 2025, Lowe's store operates 1,750 stores, totaling approximately 195.3 million square feet of retail sales space.

“Despite recent uncertainty and housing market headwinds, our team’s firm focus on excellent customer service has increased and has earned JD Power’s Lowe’s No. 1 customer satisfaction among home improvement retailers.” Marvin R. EllisonChairman, President and CEO of Lowe.

“Strategic investments in technology, the invite store environment, and our dedicated colleagues continue to strengthen our commitment to serving our customers and the community,” Ellison added.

The company reported operating cash flows of $3.38 billion for the quarter, down from $4.26 billion in the same period last year.

The company reiterated its concerns about disciplinary distribution, a highlight of the $645 million dividend paid in the quarter.

Lowe acknowledged tariffs as a potential risk factor, but provided no specific guidance on its impact.

Lowe's forecast of EPS of 2025 is $12.15–$12.40, while the consensus estimate is $12.23. Total sales are expected to be between $83.5 billion and $84.5 billion compared to analysts' expectations.

Lowe has an operating margin of 12.3% to 12.4%, and plans to spend about $2.5 billion on capital expenditures.

Price action: On the previous check, the low stock traded down 0.37% to $230.41.

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Lowe's CEO this article raises recent housing market challenges, but initially appeared on Outlook on Benzinga.com.