Lowe's Companies reported a mixed second quarter, with adjusted earnings of $4.40 per share beating the Zacks Consensus Estimate of $4.22 but net sales of $25.96 billion missing the $26.13 billion consensus mark, while comparable sales rose just 0.2%. Management trimmed its full-year outlook to the bottom of every previously guided range, with total sales now at $92.0 billion, comparable sales at flat, operating margin at 11.2%, and adjusted diluted EPS at approximately $12.25. The results contrast sharply with Home Depot's comparable sales of 1.7%, its best in four years, creating a 150-basis-point gap that is the widest between the two in recent memory. Lowe's gross margin fell 77 basis points to 33.04% and operating margin dropped 81 basis points to 13.67%, while net earnings of $2.399 billion were essentially flat and diluted EPS of $4.27 was unchanged from a year ago. The company disclosed that both GAAP and adjusted EPS include an $0.11 benefit from IEEPA tariff refunds, and backing out that one-time item leaves adjusted EPS near $4.29, roughly 1% below the prior-year adjusted figure of $4.33.
Lowe's Companies IncLowe's missed sales estimates, cut full-year guidance, and margins declined, with EPS flat year-over-year.
The Home Depot IncHome Depot's comparable sales of 1.7%, its best in four years, contrasts with Lowe's weak results, indicating stronger demand.
