Lowe’s results in the first quarter were met with a negative market reaction, as the company’s revenue fell modestly year over year and same-store sales continued to decline. Management cited ongoing softness in big-ticket do-it-yourself (DIY) discretionary demand and an unfavorable start to the spring season, exacerbated by poor weather in February. CEO Marvin Ellison noted, “our financial results also reflect ongoing pressure in DIY bigger ticket discretionary demand and a slower start to spring versus last year, with exceptionally unfavorable weather across much of the country in February.” The team pointed to resilience in Pro and appliances as bright spots.

Is now the time to buy LOW? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions Lowe's’s Q1 Earnings Call

• Simeon Gutman (Morgan Stanley) asked about the relationship between comparable sales and expense leverage for the remainder of the year. CFO Brandon Sink detailed that gross margins are expected to remain flat, with productivity initiatives offsetting pressures.
• Steve Forbes (Guggenheim Securities) inquired about the relevance of spring season transactions and how much Q2 could benefit. Sink explained that average ticket growth, particularly in Pro and appliances, would drive comps, with transaction recovery anticipated in Q2.
• Robbie Ohmes (Bank of America) questioned the impact of tariffs on pricing and sourcing. CEO Marvin Ellison and EVP Bill Boltz emphasized Lowe’s diversified sourcing approach and strong supplier relationships as central to cost management.
• Scot Ciccarelli (Truist Securities) focused on persistent weakness in big-ticket DIY and what could unlock greater activity. Ellison and Sink attributed this to high mortgage rates and stated that a significant rebound was not expected in 2025.
• Peter Benedict (Baird) asked about scaling the Extended Aisle initiative for Pro customers. EVP Joe McFarland described how onboarding incremental suppliers improves visibility, quoting, and delivery speed, positioning Lowe’s to better serve Pro clients.

Catalysts in Upcoming Quarters

In the coming quarters, our team will watch (1) the integration of Artisan Design Group and its impact on Pro segment growth, (2) the pace of adoption and monetization for Lowe’s new online marketplace and AI-powered customer tools, and (3) whether productivity initiatives and sourcing diversification effectively offset cost headwinds from tariffs and inflation. Progress in these areas will be key to Lowe’s ability to deliver on its targets despite continued DIY caution.

Lowe's currently trades at $227.79, down from $231.01 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).

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