Lowe`s Cos., Inc.

Q2 performance: sales up, comps slightly positive; momentum offset by softer DIY - Sales: $26B, +8.3% YoY. - Comparable sales: +0.2% (May -0.4%, June +1.7%, July -1.2%). - Drivers / mix: Strength in Pro, Online, and Home Services helped offset persistent macro pressure, softer DIY discretionary demand, and challenging Memorial Day weather. - Price vs volume: Avg ticket +2.3% (modest price inflation + Pro strength), transactions -2.1% (pressure in weather-sensitive outdoor/seasonal categories).

Profitability & costs: better than expected flow-through, but margin pressured by acquisitions and inputs - Gross margin: 33%, -80 bps YoY (adjusted); pressured by dilutive impact from FBM and ADG, partially offset by favorable credit revenue. - Tariff/refund effects: Included ~$80M (~30 bps) gross margin benefit from tariff refunds, largely offset by elevated fuel/transportation costs. - Operating margin: Adjusted operating margin rate 14%, -62 bps YoY. - Earnings (per share): GAAP diluted EPS $4.27; adjusted diluted EPS $4.40. Both included $0.11 benefit from tariff refunds. Adjusted EPS exceeded expectations even excluding that benefit.

Cash flow & capital allocation: strong free cash flow; dividend commitment; leverage target - Free cash flow: $3.1B in Q2. - Capex: $542M. - Dividends: $673M paid ($1.20/share), reinforcing dividend aristocrat status. - Leverage: Adjusted debt/EBITDA 3.0x, with goal to reach 2.75x by mid-2027. - ROIC: 25.5%.