Here Is What To Expect

Here Is What To Expect

Here Is What To Expect

Home improvement retailer Lowe’s (NYSE:LOW) will be announcing earnings results this Wednesday before market open. Here’s what to expect.

Lowe’s met analysts’ revenue expectations last quarter, reporting revenues of $23.96 billion, up 1.6% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ gross margin estimates but revenue in line with analysts’ estimates.

Is Lowe’s a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Lowe’s revenue to grow 3.5% year on year to $20.87 billion, a reversal from the 1.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.96 per share.

Lowe's Total Revenue
Lowe’s Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Lowe’s has missed Wall Street’s revenue estimates four times over the last two years.

Looking at Lowe’s peers in the home furnishing and improvement retail segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Floor And Decor delivered year-on-year revenue growth of 5.5%, meeting analysts’ expectations, and Arhaus reported revenues up 8%, topping estimates by 2%. Floor And Decor traded down 3.9% following the results while Arhaus’s stock price was unchanged.

Read our full analysis of Floor And Decor’s results here and Arhaus’s results here.

The euphoria surrounding Trump’s November win lit a fire under major indices, but potential tariffs have caused the market to do a 180 in 2025. While some of the home furnishing and improvement retail stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 8.9% on average over the last month. Lowe’s is down 7.2% during the same time and is heading into earnings with an average analyst price target of $278.56 (compared to the current share price of $224.73).

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