Lowe's second quarter results

Lowe's reports second quarter 2025 earnings with a higher adjusted EPS, a modest same-store sales gain, and updates its full-year outlook following the Artisan Design Group acquisition.

Lowe's reports strong second quarter 2025 results with ADG deal moving growth forward

Lowe's posted net earnings of $2.4 billion and diluted earnings per share (EPS) of $4.27 for the quarter ended Aug. 1, 2025, up from $4.17 in the prior-year period. Excluding $43 million of pre-tax costs tied to the Artisan Design Group (ADG) acquisition, adjusted diluted EPS rose 5.6% to $4.33. Total sales reached $24.0 billion, versus $23.6 billion a year earlier, with comparable sales up 1.1%.

Lowe's closed the ADG acquisition in June and funded it through $1.3 billion in acquisition-related spending, while also paying $645 million in dividends. The company operates 1,753 stores and about 195.5 million square feet of selling space. The quarter’s results reflect continued strength in both the Pro and DIY segments, even as earlier weather posed a hurdle.

For full-year 2025, Lowe's updated its outlook to incorporate the ADG deal. Sales are expected to be $84.5 billion to $85.5 billion, with comparable sales flat to up 1%. The company aims for operating margin of 12.1% to 12.2% and adjusted operating margin of 12.2% to 12.3%. Diluted EPS is projected to roughly $12.10 to $12.35, with adjusted diluted EPS around $12.20 to $12.45. Capital expenditures are planned at about $2.5 billion. Lowe's notes that these adjusted figures exclude ADG-related costs and that a reconciliation to GAAP may not be meaningful for forward-looking guidance.

The ADG acquisition marks a deliberate shift to strengthening Lowe's professional and construction-market footprint. That tilt toward Pro spend and larger projects could diversify Lowe's revenue beyond traditional DIY demand, potentially smoothing cycles tied to housing turnover. Yet the deal also raises integration risks and adds to debt and interest costs in a higher-rate environment. The company remains committed to disciplined capital allocation, balancing expansions with dividends and buybacks, while acknowledging that forward-looking guidance hinges on macro factors such as housing activity, consumer spending, and tariff or policy changes. If Lowe's can successfully integrate ADG and maintain service quality, the pro channel could become a more meaningful driver of growth in a market where professional customers increasingly value one-stop access to goods and services.

Highlights

Lowe’s remains focused on steady execution as it expands into higher-ticket projects.