Lowe’s Exceeds Expectations in Q4 2024, Shares Rise

Lowe’s Companies Inc. (NYSE: LOW) has reported impressive results for the fourth quarter of 2024, surpassing market expectations and driving a significant increase in its stock price. The home improvement giant’s strong performance is attributed to robust sales growth, strategic initiatives, and effective cost management.

Key Highlights

1. Sales and Earnings: Lowe’s reported total sales of $18.6 billion for Q4 2024, with a comparable sales increase of 0.2%. The company’s adjusted earnings per share (EPS) for the quarter stood at $1.93, exceeding analysts’ expectations.
2. Pro Segment Growth: The Pro segment, which caters to professional contractors, saw high single-digit growth for the second consecutive quarter. This growth was driven by enhanced digital experiences and a redesigned Pro loyalty program, MyLowe’s Pro Rewards.
3. Online Sales: Online sales grew by 9.5% in Q4, with record-breaking sales during Black Friday and Cyber Monday. This indicates the success of Lowe’s omnichannel investments and its ability to meet the evolving needs of customers.
4. Strategic Initiatives: Lowe’s continued to gain traction with its Total Home strategic initiatives, which focus on providing a comprehensive range of products and services to meet customers’ home improvement needs. The company also awarded $80 million in discretionary bonuses to frontline associates in recognition of their hard work.
5. Market Challenges: Despite the positive results, Lowe’s faced challenges in the DIY discretionary spending segment, particularly in larger ticket projects. High mortgage rates and a cautious consumer environment contributed to these pressures.
6. Capital Allocation: Lowe’s repurchased approximately 5.5 million shares for $1.4 billion and paid $650 million in dividends during the quarter. For the fiscal year, the company returned $6.5 billion to shareholders through share repurchases and dividends.

Outlook for 2025

Lowe’s has provided a cautious outlook for 2025, reflecting continued uncertainty in the home improvement market. The company expects total sales to range between $83.5 billion and $84.5 billion, with comparable sales expected to be flat to up 1%. The operating margin is projected to be between 12.3% and 12.4%.

Conclusion

Lowe’s strong performance in Q4 2024 demonstrates its resilience and ability to adapt to market challenges. The company’s strategic initiatives, focus on digital transformation, and commitment to customer satisfaction have positioned it well for future growth. Investors and stakeholders can remain optimistic about Lowe’s long-term prospects as it continues to navigate the evolving home improvement landscape.