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17h ago

Lowe's Q1 Sales Decline Less Than Expected as Tariff Pressures Loom

The retailer reaffirms full-year guidance, focuses on pricing competitiveness, and accelerates supply chain diversification to navigate economic challenges.

Lowe's has seen a particular type of customer spending decline. 
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Overview

  • Lowe's posted a 1.7% decline in Q1 comparable sales, outperforming analyst expectations despite weaker consumer sentiment and reduced foot traffic.
  • The company maintained its full-year sales forecast, projecting flat to 1% growth in comparable sales for fiscal 2025.
  • CEO Marvin Ellison emphasized Lowe’s commitment to competitive pricing, aiming to defend market share even as tariff-related costs increase in the second half of the year.
  • Approximately 60% of Lowe’s purchases are sourced domestically, with 20% from China, as the company accelerates efforts to diversify its supply chain to mitigate tariff impacts.
  • Customers are delaying larger renovation projects, such as kitchen and bathroom upgrades, due to high mortgage rates and affordability concerns, while smaller projects and professional services remain steady.