Home improvement retailer Lowe’s Companies (LOW) has issued fourth-quarter 2025 financial results that beat Wall Street forecasts on the top and bottom lines.
The North Carolina-based company reported earnings per share (EPS) of $1.98 U.S., which topped the $1.94 U.S. expected among analysts.
Revenue in the final months of last year totaled $20.58 billion U.S., which beat the $20.34 billion U.S. that had been forecast on Wall Street. Sales were up 10% from a year earlier.
Comparable sales for the quarter rose 1.3%, higher than the 0.2% that analysts were expecting.
Management said that the company’s strategy is resonating with do-it-yourself customers and building professionals despite a soft housing market.
Unfortunately, Lowe’s issued forward guidance that disappointed analysts and investors.
Looking ahead, the company said it expects full-year sales of $92 billion U.S. to $94 billion U.S., which would be a 7% to 9% year-over-year increase.
Lowe’s also expects earnings of $12.25 U.S. to $12.75 U.S. for all of this year, and comparable sales to be flat to up 2%.
The earnings projections for the year fell short of analysts’ consensus expectations of $12.95 U.S.
The home improvement sector has struggled as consumers put off big projects because of high borrowing costs and slumping housing prices, as well as economic uncertainty.
Prior to today (Feb. 25), LOW stock had risen 15% over the last 12 months to trade at $278.59 U.S. per share.
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