Lowe’s Cos. which owns the second-largest home improvement shop chain in the U.S. reduced net income and increased revenue in the third quarter of fiscal 2025, while adjusted earnings came in better than experts’ expectations.
According to a company press release, net income for the quarter ended Oct. 31 was $1.62 billion, or $2.88 per share, compared to $1.7 billion, or $2.99 per share, for the comparable period a year earlier.
Earnings excluding one-time factors rose to $3.06 per share from $2.89. analysts surveyed by FactSet on average estimated the company’s adjusted earnings at $2.97 per share.
Revenue rose 3.2% to $20.81 billion from $20.17 billion a year earlier, in line with forecasts.
The retailer’s comparable sales rose 0.4% last quarter. The consensus forecast called for a 1% increase.
Lowe’s revised its adjusted earnings expectations for the current fiscal to $12.25 per share from a previous estimate of $12.2-12.45. revenue is now expected to be $86 billion versus a previous estimate of $84.5-85.5 billion. the company also forecast comparable sales to remain flat year-over-year, while an increase of up to 1% was previously expected.
Analysts forecast comparable sales growth of 0.3%, revenue of $85.31 billion and adjusted earnings of $12.28 per share.
Earlier, the company announced it will pay a quarterly dividend of $1.2 per share. The shareholder register closes on 21 January and the payment will take place on 4 February.
As of 31 October, the company operated 1,756 shops in the US and Canada.
Lowe’s stock price is up 3.9 per cent in early trading on Wednesday. Since the beginning of the year, the company’s market value has fallen 11% (to $123.1bn), while the S&P 500 stock index has added 12.5%.