Lowe’s (LOW) stock popped early on Wednesday after the retailer raised its forecast for 2025 and reported a return to same-store sales growth after a decline to start the year.
Lowe’s reported that same-store sales increased 1.1%, a return to growth after falling in the first three months of 2025. That compared to a 1.3% jump Wall Street expected.
The company also announced a deal Wednesday morning to acquire Foundation Building Materials for approximately $8.8 billion.
“This quarter, the company delivered positive comp sales driven by solid performance in both Pro and DIY,” CEO Marvin Ellison said in the release, “Despite challenging weather early in the quarter, our teams drove both sales growth and improved profitability.”
Shares rose as much as 3% in premarket trade.
The home improvement chain reported earnings per share in the second quarter of $4.33 on an adjusted basis, better than the $4.24 Wall Street had expected. Revenue came in at $23.96 billion; the Street had forecast revenue of $23.98 billion, according to Bloomberg data.
Notably, the company raised its guidance for the 2025 fiscal year, with total sales now projected to be in a range of $84.5 billion-$85.5 billion, up from a prior range of $83.5 billion-$84.5 billion, while same-store sales are still expected to be flat to up 1% year over year.
It also lowered its operating income 12.1% to 12.2%, down from the previous range of 12.3% to 12.4%.
Tariff uncertainty remains top of mind, too. Lowe’s sources 20% of its sales from China, including items like ceiling fans, small appliances, and tools.
In the previous quarterly results earnings call, Lowe’s said it sources roughly 60% of its sales from the US. Executives told investors the company is seeking to limit exposure to China.
That’s compared to rival Home Depot (HD), which said has said that 50% of its products are sourced domestically. On Tuesday, Home Depot, (HD) missed on earnings, revenue and same-store store sales growth, but its stock rose as a 3.3% same-store sales increase in July showing the company gained momentum as it exited the quarter.
Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.
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