Lowe’s Posts Positive Q4 2024 Earnings and Optimistic 2025 Outlook

Home improvement retailer Lowe’s posted solid earnings for the fourth quarter of 2024. Plus, the year ahead will likely be a good one, according to the company.

For the three-month period that ended on Jan. 31, revenue for Lowe’s reached $18.55 billion, beating analysts’ predictions of $18.29 billion. Net income was $1.13 billion, better than the $1.02 billion posted in Q4 2023,

Improved by online purchases and material buying related to hurricanes Milton and Helene, Lowe’s saw a 0.2% gain in comparable sales. While only a slight uptick, reported comparable sales were much better than the nearly 2% drop Wall Street was expecting.

“Our results this quarter were once again better than expected, as we continue to gain traction with our Total Home strategic initiatives,” said Lowe’s CEO Marvin R. Ellison in the earnings statement. “We remain confident in the long-term strength of the home improvement industry, and we are equally confident in our strategy to capitalize on the expected recovery.

Looking Ahead for Lowe’s

In 2025, Lowe’s predicts revenue between $83.5 billion and $84.5 billion. If the retailer hits the goal, sales will be roughly the same or better than last year’s $83.67 billion. Comparable sales will remain steady, likely to grow 1% compared to 2024.

As mortgage rates have climbed in recent months, Ellison noted on a conference call that many homeowners have chosen to stay put, neither buying nor selling. This puts Lowe’s in a challenging environment as homeowners potentially delay improvements and renovations until the housing market loosens up.

Nonetheless, Lowe’s will continue moving forward with its current strategy. According to company leadership, the home improvement giant is “well-positioned” to take advantage of the market as it makes a recovery this year.

Rival Home Depot, which also reported solid fourth-quarter earnings, seems concerned about interest rates and a slow housing market as well. However, Home Depot CFO Richard McPhail said homeowners are likely to get comfortable with the higher rates and not sit on projects while economic conditions improve.

Higher loan interest rates may just become the new normal for a time. At this point, many homeowners are likely tired of waiting for a better deal, essentially biting the bullet and moving forward with financed projects regardless of the monthly payment.