Lowe’s (LOW) Q3 2025 earnings

Lowe’s on Wednesday posted a year over year sales increase for the quarter, but the company lowered its full-year profit outlook slightly to reflect a tougher economic backdrop.

The home improvement retailer now expects full-year total sales to be $86 billion, up from its previous expectations of $84.5 to $85.5 billion, because of a recent acquisition. However, it said it expects comparable sales, an industry metric that takes out one-time factors, to be flat compared to a year ago compared with the prior range it had shared of flat to up 1%.

For the full year, it now expects adjusted earnings per share of approximately $12.25, on the lower side of its previous range of $12.20 to $12.45.

On the company’s earnings call Thursday, CEO Marvin Ellison said the U.S. homeowner “remains healthy.” But, he said, “affordability and uncertainty in the broader economy continue to weigh on consumer confidence, particularly when it comes to larger discretionary purchases, as borrowing costs have been elevated for longer than originally anticipated.”

The company revised its outlook to reflect that economic uncertainty and the acquisition of Foundation Building Materials, which closed last month.

Here’s what the retailer reported for the fiscal third quarter compared with Wall Street’s estimates, according to a survey of analysts by LSEG:

• Earnings per share: $3.06 adjusted vs. $2.97 expected
• Revenue: $20.81 billion vs. $20.82 billion expected

Shares rose more than 6% in premarket trading on Wednesday after Lowe’s said its current quarter was off to a good start.

Lowe’s CEO Marvin Ellison said in the news release that the retailer posted positive comparable sales in the third quarter and also started the current quarter with positive comparable sales, “despite headwinds related to hurricane activity in the prior year.”

Lowe’s comparable sales rose 0.4% in the fiscal third quarter.

Home improvement trends, however, remain challenged by a slower housing market and higher borrowing costs — dynamics that have challenged the sector for more than two years.

In the three-month period ended Oct. 31, Lowe’s net income fell to $1.62 billion, or $2.88 per share, compared with $1.7 billion, or $2.99 in the year-ago period. Revenue increased from $20.17 billion in the year-ago quarter. Adjusting for one time items, including pre-tax expenses associated with its acquisitions, Lowe’s reported earnings of $3.06 per share.

Rival Home Depot on Tuesday also lowered its full-year profit forecast after missing Wall Street’s quarterly earnings expectations for the third quarter in a row. Chief Financial Officer Richard McPhail attributed weaker earnings to lower-than-usual storm activity, a tough housing market and consumer uncertainty.

Like Home Depot, Lowe’s has tried to attract more business from contractors and other home professionals to offset weaker do-it-yourself…