Lowe’s (LOW) Goldman Sachs 32nd Annual Global Retailing Conference 2025 summary

Acquisition strategy and market expansion

• Recent acquisition of Foundation Building Materials (FBM) enhances capabilities in interior building products and expands reach in urban markets where store presence is limited.

• FBM's integration with ADG will create a differentiated offering for large Pro customers in a $250 billion addressable market.

• FBM brings advanced job site fulfillment assets and digital tools, supporting large, complex orders and cross-selling opportunities.

• The combined platform aims to serve both residential and commercial segments, with a focus on comprehensive interior solutions for home builders.

• These acquisitions accelerate the Total Home Strategy, targeting sustainable top-line growth and long-term shareholder value.

Industry trends and consumer outlook

• Comparable sales improved throughout the quarter, with a strong July driven by seasonal shifts and core category performance.

• Homeowner consumers remain healthy and willing to spend, though macro uncertainty and mortgage rates are causing project postponements rather than cancellations.

• Sub-6% mortgage rates are seen as a psychological unlock for increased housing turnover, but most customers are currently locked in at lower rates.

• Regardless of housing market movement, investments position the business to benefit from both new construction and home improvement trends.

Pricing, tariffs, and supply chain management

• Sourcing has shifted to 60% U.S., reducing dependency on China and diversifying risk.

• Dynamic pricing strategies leverage analytics and supplier negotiations to maintain competitiveness and value for customers.

• No significant tariff-related price adjustments in the first half; ongoing monitoring and agility in pricing are emphasized.

• Inventory levels are strong, with most second-half and spring 2026 buys already secured, and no supply chain disruptions anticipated.