Lowe’s Companies Inc. delivered modest third-quarter sales growth but lower profit as the retailer absorbed acquisition-related costs and continued to face a soft home improvement backdrop.
The home-improvement chain reported $1.6 billion in net earnings for the quarter ending Oct. 31, down 4.7% from the $1.7 billion it earned a year earlier. Diluted earnings per share fell 3.7% to $2.88, compared with $2.99 in the third quarter of 2024.
Total sales rose 3.2% to $20.81 billion, up from $20.17 billion a year ago. Comparable sales increased 0.4%, supported by 11.4% online growth, double-digit gains in home services and continued strength from professional contractors, a customer segment Lowe’s has been targeting aggressively.
The company recorded $129 million in pretax expenses tied to its recent acquisitions of Foundation Building Materials (FBM) and Artisan Design Group (ADG). Excluding those costs, adjusted earnings per share rose 5.9% to $3.06.
Through the first nine months of the year, Lowe’s reported $65.7 billion in sales, up 0.9% from $65.1 billion in the same period last year. Year-to-date net income totaled $5.65 billion, a decline of 3.1% from $5.83 billion in 2024.
CEO Marvin Ellison said the company is entering November with continued positive comparable sales despite tough comparisons tied to last year’s hurricane-related demand. He said the newly closed FBM deal will broaden Lowe’s offerings for professional customers and help drive “long-term sales and profit expansion.”
Lowe’s ended the quarter with 1,756 stores encompassing 195.8 million square feet of selling space.
The company raised its full-year sales outlook to $86 billion and now expects flat comparable sales for 2025. Lowe’s forecast adjusted earnings per share of about $12.25 and plans up to $2.5 billion in capital spending as it integrates FBM and navigates a mixed economic environment.
During the quarter, Lowe’s spent $8.8 billion to acquire FBM.
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