Lowe's Reports Decrease in Net Sales and Earnings for Fiscal Year Ending January 31, 2025

Lowe's Companies, Inc. reported a decrease in financial performance for the fiscal year ending January 31, 2025, with net sales of $83.7 billion, down 3.1% from $86.4 billion in the previous year. The company's net earnings also fell by 10% to $7.0 billion, resulting in diluted earnings per share of $12.23, a decline from $13.20 in fiscal 2023. The decrease in sales was attributed to a 2.7% drop in comparable sales, driven by a 3.0% decline in customer transactions, although there was a slight increase in the average ticket size by 0.3%. The company noted that macroeconomic factors, including inflation and higher interest rates, negatively impacted consumer discretionary spending, particularly in the DIY segment.

In terms of strategic developments, Lowe's continued to execute its Total Home strategy, which focuses on enhancing its offerings for professional customers, expanding online sales, and improving installation services. The company also completed the sale of its Canadian retail business in February 2023, which had previously operated 232 stores. This divestiture was part of a broader strategy to streamline operations and concentrate on the U.S. market. The sale resulted in a pre-tax gain of $177 million recognized in fiscal 2024, contributing positively to the company's financials.

Operationally, Lowe's maintained a workforce of approximately 161,000 full-time and 109,000 part-time associates as of January 31, 2025. The company reported a strong online performance, with significant investments in its omnichannel capabilities, including improved same-day delivery options and an enhanced Buy Online Pickup in Store experience. The company operated 1,748 stores across the United States, representing about 195 million square feet of retail space. Despite the overall decline in sales, Lowe's saw positive comparable sales growth among professional customers, indicating a successful penetration into this segment.

Looking ahead, Lowe's management remains optimistic about long-term demand drivers, including disposable personal income, home price appreciation, and the aging housing stock. The company anticipates that these factors will support ongoing investments in home improvement projects. However, uncertainties related to tariffs, tax policies, and the geopolitical environment could pose challenges. Lowe's plans to continue focusing on operational efficiency, cost management, and strategic investments to navigate these market pressures while aiming to deliver sustainable shareholder value.