Total Revenue

-1% " "

Lower DIY discretionary demand due to higher interest rates and cautious consumer spending weighed on revenue, partially offset by marginal improvements in Pro sales. Unfavorable weather also impacted some seasonal categories. " "

Operating Income

-6% " "

Reduced sales volume drove lower operating leverage, while slightly higher SG&A as a percentage of sales added pressure. Although productivity initiatives helped offset some costs, it was not enough to fully counter the decline in revenue. " "

"Other" Segment Revenue

-9% " "

No specific detailed breakdown was provided in the documents for this segment. However, broad-based softness in certain discretionary revenue streams likely contributed to the decline. " "

Short-Term Debt

$2,576 million (up from $0) " "

Primarily reflects reclassifications of maturing long-term debt into short-term and potential use of short-term financing in the current period. The prior year had no outstanding short-term borrowings, creating a considerable YoY increase. " "

Share Repurchases

$759 million (versus -$525 million in Q3 2024) " "

Represents resumption of buyback activity compared to a net outflow position in the prior period. This aligns with Lowe’s capital allocation priorities—balancing debt management, dividends, and a return of excess cash to shareholders via share repurchases. " "

Sales

FY 2024

$82.7B–$83.2B "

$83.0B–$83.5B "

raised

Comparable Sales

FY 2024

Decline of 3.5%–4.0% "

Decline of 3.0%–3.5% "

raised

Adjusted Operating Margin

FY 2024

12.4%–12.5% "

12.3%–12.4% "

lowered

Net Interest Expense

FY 2024

$1.4B "

$1.3B "

lowered

Capital Expenditures

FY 2024

$2B "

$2B "

no change

Adjusted Effective Tax Rate

FY 2024

24.5% "

24.5% "

no change

Adjusted Diluted EPS

FY 2024

$11.70–$11.90 "

$11.80–$11.90 "

raised

Pro segment performance

Recurring strong results in Q2, Q1, and Q4 2024 with emphasis on Pro inventory depth, job site delivery, loyalty programs, and expansion of Pro-focused brands. " " " " " "

High single-digit positive comps, continued success with small- to medium-sized Pros, strong Pro backlogs. " " "

Recurring topic; consistently positive sentiment over multiple periods.

PPI initiatives

Mentioned each quarter (Q2, Q1, Q4 2024) as a driver of productivity, cost savings, and operational efficiencies, covering store operations, supply chain, merchandising, and technology. " " " "

Referred to as a “gift that keeps on giving,” with a robust update promised at the December conference. " " "

Recurring topic; ongoing core strategy for cost savings and productivity gains.

DIY big-ticket discretionary

Repeatedly cited as soft or under pressure in prior quarters, impacting categories like kitchen and bath, flooring, and appliances. " " " "

Remains under pressure due to elevated mortgage rates, affordability challenges, and macroeconomic factors. " " "

Recurring topic; continued negative sentiment regarding bigger-ticket DIY spending.

Affordability challenges

Discussed extensively in prior calls as a key macro headwind, tied to elevated interest rates, inflation, and limited housing turnover. " " "

Focused on driving value (e.g., MyLowe’s Rewards), smaller projects, and innovative product introductions to address cost concerns. "

Recurring topic; remains a headwind, with ongoing efforts to provide cost-effective solutions.

Margin expansion vs. margin pressure

Prior quarters noted transportation cost savings, vendor clawbacks, and PPI as positives, yet sales deleverage and inflationary pressures weighed on operating margin. " " "

Slight gross margin improvement (33.7%), partially offset by hurricane-related product mix and transportation costs. " Operating margin ~12.3%.

Recurring topic; balance of positive PPI initiatives vs. weather, cost, and sales headwinds.

Cost management and vendor negotiations

Previously cited as a key strategy using PPI-driven cost reductions, supply chain optimizations, and clawback of higher material costs. " " "

Continued data-driven vendor negotiations, cost clawbacks reinvested in marketing and competitive pricing. "

Recurring topic; still central to managing margins and offsetting inflation.

Technology and omnichannel investments

Repeated references to in-store mode features, AI for shrink reduction, digital kitchen design, and expansions in same-day or next-day delivery in Q2, Q1, and Q4 2024 calls. " " " "

Emphasis on “Shop by Job” for Pros, improved mobile app traffic, online sales up ~6%, same-day paint delivery via gig network. " " "

Recurring topic; consistently driving growth, improved CX, and operational efficiency.

Uncertainty in consumer spending & market recovery

Ongoing issue in previous calls, driven by higher interest rates, housing affordability, and shifting consumer sentiment. " " "

Softness in DIY discretionary; no near-term macro improvement expected; scenario planning for 2025 to address volatile demand. " " "

Recurring topic; persistent caution about timing of demand recovery.

Weather & holiday demand volatility

Weather challenges (cold, wet, heat, hurricanes) repeatedly cited, plus holiday variations (Easter, Black Friday) impacting comps in earlier quarters. " " " "

Potential unpredictability in Q4 due to storm timing and one fewer shopping week between Thanksgiving and Christmas. "

Recurring topic; remains a variable factor influencing quarterly performance.

Hurricane-related sales

Mentioned in Q2 only as a preparedness measure; Q4 2024 noted cycling of past hurricane impacts (Ian, Ida) affecting comps. " "

Hurricanes Helene and Milton added ~100bps to comps but weighed on gross margin due to product mix and extra costs. " "

Recurring topic; key impact in Q3 2025 from storm activity.

SpringFest marketing campaign

Highlighted in Q1 2025 as a geo-targeted approach to drive early spring demand, strong lawn & garden promotions. " "

No mention in current period.

No longer mentioned; was previously a key campaign in early 2025.

DIY loyalty program

First launched in Q4 2024, with expansions in Q1 and Q2 2025 driving personalization and repeat visits. " " "

MyLowe’s Rewards showed record membership in October, with member-only offers and strong repeat purchase metrics. " "

Recurring topic; growing driver of DIY engagement and sales.

Online appliance business performance

Prior calls consistently noted stable or high appliance comps online, supported by robust fulfillment and exclusive product assortment. " " "

~6% online sales growth, strong appliance offering with next-day and two-day shipping capabilities. " "

Recurring topic; steady performer supporting omnichannel strategy.

Consumer trading down in appliances

Mentioned in Q1 and Q4 2024 with some consumers trading down to single units or less expensive models, though others still purchased premium appliances. " "

Not explicitly mentioned; focus was on innovative higher-value products like the LG all-in-one washer-dryer. "

Topic not mentioned in the latest call; previously noted mixed behavior in the appliance category.