Lowe’s Cos. got a lift from appliances in the second quarter when it drove earnings and sales growth that met or exceeded expectations.
For the second quarter, Lowe’s recognized $43 million in pre-tax expenses associated with the acquisition of Artisan Design Group, which negatively impacted second-quarter diluted EPS by six cents. With the expense excluded, second quarter 2025 adjusted diluted earnings per share were $4.33 versus $4.10 in the year-prior period, Lowe’s indicated.
An analyst consensus estimate from Zacks Investment Research called for earnings per adjusted diluted share of $4.23 and revenues of $23.96 billion.
Comparable sales grew 1.1% in the quarter year over year. Total sales were $23.96 billion versus $23.59 billion in the year-previous quarter. Operating income was $3.47 billion versus $3.45 billion in the year-before period.
Even as it reported second-quarter sales, Lowe’s also announced that it had entered into a definitive agreement to acquire Foundation Building Materials for $8.8 billion. FBM is a North American distributor of interior building products, including drywall, metal framing, ceiling systems, commercial doors and hardware, insulation, and complementary products. It serves large residential and commercial professionals in new construction and repair and remodel applications, according to Lowe’s.
Lowe’s pointed out that expectations for its core business performance in fiscal 2025 remain unchanged, although the company did update its outlook to reflect the inclusion of ADG, with total sales now at $84.5 to $85.5 billion from $83.5 to $84.5 billion, and operating margin of 12.1% to 12.2% from 12.3% to 12.4%.
Marvin Ellison, Lowe’s chairman, president and CEO, said in a conference call that the company has systems and data it can use to manage costs on a portfolio basis as tariff rates swing, mitigating effects on prices and even looks at the situation as an opportunity to take share.
As part of the conference call, Bill Boltz, Lowe’s executive vice president, merchandising, said that, in Home Decor, Lowe’s delivered positive comps in paint, flooring and appliances, where it continues to build on momentum, with both positive sales dollars and unit comps in the quarter. All major appliance categories enjoyed sales growth in the period.
In announcing the second quarter results, Ellison said, “This quarter, the company delivered positive comp sales driven by solid performance in both pro and DIY. Despite challenging weather early in the quarter, our teams drove both sales growth and improved profitability. I’d also like to thank our front-line associates for their outstanding service, which led to another increase in customer satisfaction scores. In June, we closed on the acquisition of ADG, which strengthens our ability to capture a greater portion of preplanned spend and expands our reach into the new home construction market.”
