Lowe’s (LOW) Q4 2025 earnings summary

Executive summary

• Q4 sales reached $18.6 billion with net earnings of $1.1 billion and diluted EPS of $1.99, driven by strong Pro and online performance, seasonal DIY demand, and hurricane recovery efforts, despite ongoing pressure on DIY discretionary spending.

• Strategic investments in omnichannel, loyalty programs, and AI-powered customer experiences are enhancing engagement and operational efficiency.

• The company remains focused on its Total Home Strategy, targeting Pro penetration, online acceleration, home services expansion, and productivity improvements.

• Operated 1,748 stores with 195 million square feet of retail space as of January 31, 2025.

Financial highlights

• Q4 comparable sales rose 0.2%, with average ticket up 1.5% to $102.08 and transactions down 1.3%.

• Q4 GAAP diluted EPS was $1.99; adjusted EPS was $1.93, excluding an $80 million pre-tax gain from the Canadian retail business sale.

• Gross margin for Q4 improved to 32.9%, up 46 basis points year-over-year.

• Q4 operating margin was 9.9%, up 80 basis points; full-year adjusted operating margin was 12.3%.

• Fiscal year 2024 sales totaled $83.7 billion, down from $86.4 billion in 2023.

Outlook and guidance

• 2025 sales are expected in the range of $83.5–$84.5 billion, with comparable sales flat to up 1%.

• Operating margin is forecasted at 12.3%–12.4%, with $1 billion in productivity gains targeted.

• Full-year diluted EPS is projected at $12.15–$12.40.

• Capital expenditures are planned at $2.5 billion, including 5–10 new store openings.

• Q1 comp sales and operating margin are expected to be below full-year guidance due to weather and investment timing.