Lowe's trims outlook despite Q3 sales spark

19th Nov 2025 11:23

(Sharecast News) - DIY chain Lowe's Companies, Inc trimmed its full-year earnings forecast on Wednesday, despite posting a jump in quarterly sales.

The US retailer posted sales of $20.8bn in the three months to 31 October, up from $20.2bn a year previously. Comparable sales ticked up 0.4%.

Net earnings eased to $1.6bn from $1.7bn, with diluted earnings per share falling 11 cents to $2.88, after the company recognised $129m in acquisition expenses during the quarter. Once stripped out, third-quarter adjusted diluted EPS rose 5.9% to $3.06, above expectations.

Marvin Ellison, chief executive, said: "The company delivered another quarter of positive comp sales, and we're pleased to start November with positive comps as well, despite headwinds related to hurricane activity in the prior year."

As at 1215 GMT, the Wall Street stock was up 5% in pre-market trading.

However, looking to the full year and Lowe's adopted a more cautious tone.

Total sales were slated to come in at $86bn, ahead of its previously forecast range of between $84.5bn to $85.5bn, boosted by the acquisition of Foundation Building Materials, which closed last month.

But acknowledging the "ongoing uncertainty in the macroeconomic environment", Lowe's guided for flat comparable sales.

It had previously forecast full-year comparable sales growth of between flat and up to 1% growth.

EPS guidance was also trimmed, to $12.25, at the lower end of a previous $12.20 to $12.45 range,

On Tuesday, rival Home Depot cut its full-year outlook, flagging weak consumer sentiment, a sluggish housing market and a quieter-than-normal storm season.

Lowe's currently has around 1,700 home improvement stores, 530 branches and 130 distribution centres.