Lowe’s Stock Surges with Same-Store Sales Growth and 2025 Forecast Boost
Discover how Lowe’s return to same-store sales growth and raised 2025 forecast are reshaping investor confidence and stock momentum in the competitive home improvement sector.
Key Takeaways
- Lowe’s stock rose following a return to same-store sales growth.
- The company raised its 2025 sales forecast to $84.5-$85.5 billion.
- Earnings per share beat Wall Street expectations at $4.33.
- Stock price closed at $250.89, above the 52-week average.
- Investor optimism reflects improved operational performance and outlook.
Lowe’s recent earnings report has sparked a fresh wave of investor enthusiasm. After a sluggish start to 2025, the home improvement giant announced a return to same-store sales growth, a key metric that signals healthier consumer demand and operational strength. Alongside this, Lowe’s raised its sales forecast for 2025, projecting revenues between $84.5 billion and $85.5 billion, up from earlier estimates.
This shift has not gone unnoticed. Shares popped as much as 3% in premarket trading, reflecting renewed confidence in Lowe’s strategic direction. The company’s earnings per share of $4.33 also surpassed Wall Street’s $4.24 estimate, underscoring improved profitability despite some revenue slight misses.
In this article, we’ll unpack what Lowe’s sales rebound and forecast upgrade mean for investors, explore the competitive landscape, and offer insights into how these developments could shape the stock’s trajectory through 2025 and beyond.
Tracking Stock Momentum
Lowe’s stock closing at $250.89 on August 18, 2025, signals more than just a number—it’s a pulse check on investor sentiment. This price sits comfortably above the 52-week average of $244.55, showing that the market is rewarding the company’s recent operational wins. While still shy of its October 2024 peak at $278.66, the trajectory points upward, with forecasts nudging prices toward $278 to $281 in the coming months.
Imagine a runner who stumbled early but found their stride mid-race—that’s Lowe’s stock story. The bounce back from early-year sales declines to growth has investors betting on sustained momentum. Premarket trades even saw a 3% jump, reflecting eagerness to get in on the action before the opening bell.
This momentum isn’t just about numbers; it’s about confidence. Investors see a company that’s adapting, overcoming challenges, and positioning itself for future gains. The stock’s performance is a narrative of resilience, inviting both cautious optimism and strategic attention.
Understanding Same-Store Sales Growth
Same-store sales growth is like a health check for retailers—measuring how existing stores perform without leaning on new locations. For Lowe’s, a 1.1% increase after a dip earlier in 2025 signals that customers are returning and spending more. Though slightly below Wall Street’s 1.3% expectation, it’s a clear step back into growth territory.
Why does this matter? Because it reflects the company’s ability to connect with shoppers, manage inventory, and execute promotions effectively. CEO Marvin Ellison highlighted strong performances in both professional and DIY segments, showing that Lowe’s is hitting the right notes across its customer base.
Think of it as a restaurant that’s not just opening new branches but making its original spots more popular. This organic growth is often more sustainable and a better indicator of long-term health. For investors, it’s a reassuring sign that Lowe’s core business is gaining traction again.
Decoding the 2025 Forecast Raise
Lowe’s raised its 2025 sales forecast to a range of $84.5 billion to $85.5 billion, nudging expectations upward from the previous $83.5 billion to $84.5 billion. This adjustment reflects management’s confidence in ongoing sales momentum and operational improvements.
However, it’s not all sunshine. The company slightly lowered its operating income margin guidance to 12.1%-12.2% from 12.3%-12.4%, hinting at some margin pressures possibly linked to tariffs or supply chain costs. Still, the overall tone is optimistic.
This forecast raise is like a coach telling the team, “We’re playing better than expected, so let’s aim higher.” It signals to investors that Lowe’s sees tangible progress and is willing to set loftier targets. For those tracking retail stocks, this kind of guidance upgrade often sparks renewed interest and can drive stock appreciation.
Navigating Competitive Pressures
Lowe’s operates in a fiercely competitive arena, with rivals like Home Depot constantly jockeying for market share. While Lowe’s sources about 60% of its sales domestically, it still relies on China for roughly 20%, including products like ceiling fans and tools. Tariff uncertainty remains a cloud on the horizon.
In contrast, Home Depot reported a 3.3% same-store sales increase in July but missed earnings and revenue estimates recently. This juxtaposition highlights how small shifts in sales and supply chain strategies can sway investor sentiment.
Lowe’s recent acquisition of Foundation Building Materials for $8.8 billion also signals a strategic push to strengthen its market position. It’s a chess game where every move counts, and Lowe’s seems intent on building a stronger, more resilient footprint amid macroeconomic headwinds.
Investor Insights and Outlook
For investors, Lowe’s latest results offer a blend of reassurance and opportunity. The return to same-store sales growth and raised 2025 forecast underpin a narrative of operational improvement and strategic focus. Yet, the slight dip in operating income guidance and tariff concerns remind us that challenges remain.
Stock price forecasts suggest modest gains through late 2025, with potential peaks around $302-$303 in some months. Longer-term projections for 2027-2029 envision prices between $350 and $430, assuming Lowe’s maintains its current momentum.
Investing in Lowe’s is like backing a seasoned builder who’s weathered storms and is now reinforcing the foundation. The key for investors is to watch how the company navigates supply chain risks and competitive pressures while capitalizing on its sales rebound. Patience and vigilance will be rewarded as Lowe’s crafts its next chapter.
Long Story Short
Lowe’s return to same-store sales growth and its raised 2025 forecast mark a pivotal moment for the retailer and its investors. These results suggest that the company’s strategies are resonating with both professional and DIY customers, driving sales momentum even amid early-year challenges like weather and tariff uncertainties. The stock’s rise above its 52-week average reflects this optimism, hinting at a stabilizing phase in a competitive sector. For investors, Lowe’s story is one of resilience and recalibrated growth. While the operating income guidance was slightly lowered, the overall narrative is positive, with forecasts pointing to continued gains through late 2025 and into the next few years. Yet, vigilance remains essential as macroeconomic factors and supply chain dynamics continue to influence performance. Ultimately, Lowe’s latest results offer a compelling case for those watching home improvement stocks. The blend of solid same-store sales, strategic acquisitions, and raised guidance paints a picture of a company ready to build on its momentum. For investors seeking a blend of stability and growth, Lowe’s evolving story is worth a close look.