Lowe’s (LOW) Q2 2025 earnings summary

Executive summary

• Q2 2024 sales were $23.6 billion, down 5.1% year-over-year, as DIY demand softened but Pro and online segments delivered mid-single-digit positive comps and 2.9% online sales growth.

• Net earnings for Q2 2024 were $2.4 billion, with diluted EPS of $4.17 and adjusted diluted EPS of $4.10, including a $0.07 gain from the Canadian retail business sale.

• Disciplined expense management, productivity initiatives, and the Total Home strategy supported operating performance and customer satisfaction.

• Cash flows from operations for the first six months reached $7.4 billion, supporting investments and shareholder returns.

• Customer satisfaction and productivity improved through tech-enabled solutions and labor model enhancements.

Financial highlights

• Gross margin was 33.47%, down 19 basis points year-over-year; operating margin was 14.61%, and adjusted operating margin was 14.4%.

• Q2 2024 net earnings: $2.4B (10.1% of sales); diluted EPS: $4.17; adjusted EPS: $4.10.

• Free cash flow was $2.7 billion; 4.4 million shares repurchased for $1 billion; $629 million paid in dividends.

• Inventory ended at $16.8 billion, down $581 million year-over-year.

• Cash and cash equivalents at quarter-end were $4.36 billion.

Outlook and guidance

• Full-year 2024 sales expected at $82.7–$83.2 billion, with comparable sales down 3.5%–4.0%.

• Adjusted operating margin forecasted at 12.4%–12.5%; adjusted diluted EPS expected at $11.70–$11.90.

• Capital expenditures projected at $2 billion; net interest expense at $1.4 billion; $450 million bond repayment planned.

• Third and fourth quarter comp sales expected to be about 200 basis points better than Q2, with operating margin rate for the second half roughly in line with prior year.

• Guidance revised downward due to continued DIY weakness and macroeconomic pressures.