Lowe`s Cos., Inc.

Q1 headline results (good + resilient): Lowe’s reported $23.1B sales (+10.3% YoY) with comps +0.6% (Q1 2/1/1 weather drag offset by spring strength). Adjusted diluted EPS $3.03 (+3.8% YoY). Performance was driven by Pro, Appliances, Online, and Home Services, and execution around SpringFest (strong in-stocks and member offers). Feb comps -1.4% (storms), then Mar +2.1% and Apr +0.5%.

Demand/challenges: DIY still pressured; discretionary lags (bad/ongoing): Management said DIY demand remains under pressure in a weak/low-turnover housing environment (elevated rates, higher costs). Transactions were down -0.9% YoY in Q1 (ticket +1.5%), and comps still reflect discretionary big-project categories lagging while repair/maintenance/replacement categories and services are holding up better. They estimate the portfolio is roughly ~2/3 repair/maintenance vs ~1/3 discretionary, and that hasn’t changed.

Key growth engines/opportunities (where upside is coming from): - Pro: momentum continuing; loyalty MyLowe’s Pro Rewards (small/medium Pro) “resonating.” AI tools helping associates (e.g., Materials List reducing quote generation from days to minutes). - Online: +15.5% sales growth; improved UX and fulfillment (including same-day delivery). Added free same-day delivery over $25 for MyLowe’s Rewards/Pro members; AI assistant Mylow now supports >1M customer inquiries/month and users convert at 3x the rate of non-users. - Home Services: continued share gains; announced HomeCare+ subscription for MyLowe’s Rewards members using trained store “Red Vest” associates (early, long-term loyalty/engagement bet).