Home goods retailer Lowe’s reported falling sales in the first quarter of 2025, with sales going down by 2% year-over-year to $20.9 billion.
However, the home improvement retailer maintained its fiscal outlook amid retailers in the industry, including Crocs and American Eagle, withdrawing their guidance.
Additionally, comparable sales dropped by 1.7%, and net income decreased by 6.5% to $1.6 billion.
As part of its business strategy moving forward, the home improvement retailer plans to diversify its supply chain, according to Marvin Ellison, Lowe’s CEO.
Ellison said: “Although we’re pleased with this reduced dependency, we’re not satisfied, and we’re working to accelerate our diversification efforts.
“Our global sourcing team has identified exciting diversification opportunities in the US and around the globe that we’re actively pursuing.
“We’ve done all the math, and based on the current tariff environment, we feel very comfortable that we’ll be able to deliver the financial guidance.”
However, the retailer acknowledged the potential impact of the changing macroeconomic environment but remained confident in its ability to deliver customer satisfaction despite its dip in sales.
Ellison added: “Strategic investments in technology, inviting store environments, and our dedicated associates continue to solidify our commitment to serving our customers and communities.”
Lowe’s expects to earn total sales of between $83.5 billion and $84.5 billion for the full year, while comparable sales are expected to remain unchanged or increase by 1% year-over-year.
The retailer predicts that the operating margin will be between 12.3% and 12.4%.
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