# LOWES COMPANIES INC (LOW)

Informational only - not investment advice.

CIK: 0000060667
SIC: 5211 Retail-Lumber & Other Building Materials Dealers
SIC breadcrumb: [Retail Trade](/division/G/) > [Building Materials, Hardware, Garden Supply, And Mobile Home Dealers](/major-group/52/) > [SIC 5211 Retail-Lumber & Other Building Materials Dealers](/industry/5211/)
Latest 10-K filed: 2026-03-23
SEC page: https://www.sec.gov/edgar/browse/?CIK=60667
Filing source: https://www.sec.gov/Archives/edgar/data/60667/000006066726000029/low-20260130.htm

## At a glance

FY2026 · period end 2026-01-30 · filed 2026-03-23 · accession 0000060667-26-000029 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000060667.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 86,286,000,000 USD | 2026 | verified |
| Net income | 6,654,000,000 USD | 2026 | verified |
| Assets | 54,144,000,000 USD | 2026 | verified |
| Free cash flow | 7,651,000,000 USD | 2026 | computed |
| Net margin | 7.71% | 2026 | computed |
| Operating margin | 11.77% | 2026 | computed |
| Revenue YoY | +3.12% | 2026 | computed |

Stockholders' equity was not positive at FY2026 year-end (-9,917,000,000 USD, as filed); ROE and liabilities / equity are omitted rather than computed.

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2026 revenue ÷ FY2025 revenue − 1 (consecutive fiscal years only).

No market price, no rating, no forecast on this site. Not investment advice.


## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 86286000000 | USD | 2026 | 2026-03-23 |
| Net income | 6654000000 | USD | 2026 | 2026-03-23 |
| Assets | 54144000000 | USD | 2026 | 2026-03-23 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-23. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000060667.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 65,017,000,000 | 68,619,000,000 | 71,309,000,000 | 72,148,000,000 | 89,597,000,000 | 96,250,000,000 | 97,059,000,000 | 86,377,000,000 | 83,674,000,000 | 86,286,000,000 |
| Net income | 3,091,000,000 | 3,447,000,000 | 2,314,000,000 | 4,281,000,000 | 5,835,000,000 | 8,442,000,000 | 6,437,000,000 | 7,726,000,000 | 6,957,000,000 | 6,654,000,000 |
| Operating income | 5,846,000,000 | 6,586,000,000 | 4,018,000,000 | 6,314,000,000 | 9,647,000,000 | 12,093,000,000 | 10,159,000,000 | 11,557,000,000 | 10,466,000,000 | 10,153,000,000 |
| Gross profit | 21,674,000,000 | 22,434,000,000 | 22,908,000,000 | 22,943,000,000 | 29,572,000,000 | 32,056,000,000 | 32,257,000,000 | 28,844,000,000 | 27,877,000,000 | 28,885,000,000 |
| Diluted EPS | 3.47 | 4.09 | 2.84 | 5.49 | 7.75 | 12.04 | 10.17 | 13.20 | 12.23 | 11.85 |
| Operating cash flow | 5,617,000,000 | 5,065,000,000 | 6,193,000,000 | 4,296,000,000 | 11,049,000,000 | 10,113,000,000 | 8,589,000,000 | 8,140,000,000 | 9,625,000,000 | 9,864,000,000 |
| Capital expenditures | 1,167,000,000 | 1,123,000,000 | 1,174,000,000 | 1,484,000,000 | 1,791,000,000 | 1,853,000,000 | 1,829,000,000 | 1,964,000,000 | 1,927,000,000 | 2,213,000,000 |
| Dividends paid | 1,121,000,000 | 1,288,000,000 | 1,455,000,000 | 1,618,000,000 | 1,704,000,000 | 1,984,000,000 | 2,370,000,000 | 2,531,000,000 | 2,566,000,000 | 2,636,000,000 |
| Share buybacks | 3,595,000,000 | 3,192,000,000 | 3,037,000,000 | 4,313,000,000 | 4,971,000,000 | 13,012,000,000 | 14,124,000,000 | 6,138,000,000 | 4,053,000,000 | 211,000,000 |
| Assets | 34,408,000,000 | 35,291,000,000 | 34,508,000,000 | 39,471,000,000 | 46,735,000,000 | 44,640,000,000 | 43,708,000,000 | 41,795,000,000 | 43,102,000,000 | 54,144,000,000 |
| Liabilities | 27,974,000,000 | 29,418,000,000 | 30,864,000,000 | 37,499,000,000 | 45,298,000,000 | 49,456,000,000 | 57,962,000,000 | 56,845,000,000 | 57,333,000,000 | 64,061,000,000 |
| Stockholders' equity | 6,434,000,000 | 5,873,000,000 | 3,644,000,000 | 1,972,000,000 | 1,437,000,000 | -4,816,000,000 | -14,254,000,000 | -15,050,000,000 | -14,231,000,000 | -9,917,000,000 |
| Cash and cash equivalents | 558,000,000 | 588,000,000 | 511,000,000 | 716,000,000 | 4,690,000,000 | 1,133,000,000 | 1,348,000,000 | 921,000,000 | 1,761,000,000 | 982,000,000 |
| Free cash flow | 4,450,000,000 | 3,942,000,000 | 5,019,000,000 | 2,812,000,000 | 9,258,000,000 | 8,260,000,000 | 6,760,000,000 | 6,176,000,000 | 7,698,000,000 | 7,651,000,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 4.75% | 5.02% | 3.25% | 5.93% | 6.51% | 8.77% | 6.63% | 8.94% | 8.31% | 7.71% |
| Operating margin | 8.99% | 9.60% | 5.63% | 8.75% | 10.77% | 12.56% | 10.47% | 13.38% | 12.51% | 11.77% |
| Return on assets | 8.98% | 9.77% | 6.71% | 10.85% | 12.49% | 18.91% | 14.73% | 18.49% | 16.14% | 12.29% |
| Current ratio | 1.00 | 1.06 | 0.98 | 1.01 | 1.19 | 1.02 | 1.10 | 1.23 | 1.09 | 1.08 |

## As-reported value updates

2 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/LOW/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-28. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000060667.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q2 | 2022-07-29 |  |  | 4.67 | reported discrete quarter |
| 2022-Q3 | 2022-10-28 |  |  | 0.25 | reported discrete quarter |
| 2023-Q1 | 2023-05-05 |  |  | 3.77 | reported discrete quarter |
| 2023-Q2 | 2023-08-04 | 24,956,000,000 | 2,673,000,000 | 4.56 | reported discrete quarter |
| 2023-Q3 | 2023-11-03 | 20,471,000,000 | 1,773,000,000 | 3.06 | reported discrete quarter |
| 2023-Q4 | 2024-02-02 | 18,602,000,000 | 1,020,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-05-03 | 21,364,000,000 | 1,755,000,000 | 3.06 | reported discrete quarter |
| 2024-Q2 | 2024-08-02 | 23,586,000,000 | 2,383,000,000 | 4.17 | reported discrete quarter |
| 2024-Q3 | 2024-11-01 | 20,170,000,000 | 1,695,000,000 | 2.99 | reported discrete quarter |
| 2024-Q4 | 2025-01-31 | 18,554,000,000 | 1,124,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-05-02 | 20,930,000,000 | 1,641,000,000 | 2.92 | reported discrete quarter |
| 2025-Q2 | 2025-08-01 | 23,959,000,000 | 2,398,000,000 | 4.27 | reported discrete quarter |
| 2025-Q3 | 2025-10-31 | 20,813,000,000 | 1,616,000,000 | 2.88 | reported discrete quarter |
| 2025-Q4 | 2026-01-30 | 20,585,000,000 | 1,000,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-05-01 | 23,078,000,000 | 1,628,000,000 | 2.90 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from LOW's latest 10-K: [/company/LOW/business/](/company/LOW/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from LOW's latest 10-K: [/company/LOW/risk-factors/](/company/LOW/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/60667/000006066726000072/low-20260501.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-05-28
Report date: 2026-05-01

Item 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This discussion and analysis summarizes the significant factors affecting our consolidated operating results, liquidity and capital resources during the three months ended May 1, 2026, and May 2, 2025. This discussion and analysis should be read in conjunction with the consolidated financial statements and notes to the consolidated financial statements that are included in our Annual Report on Form 10-K for the fiscal year ended January 30, 2026 (the Annual Report), as well as the consolidated financial statements (unaudited) and notes to the consolidated financial statements (unaudited) contained in this report. Unless otherwise specified, all comparisons made are to the corresponding period of fiscal 2025. This discussion and analysis is presented in four sections:

•Executive Overview

•Operations

•Financial Condition, Liquidity and Capital Resources

•Critical Accounting Policies and Estimates

EXECUTIVE OVERVIEW

The following table highlights our financial results:

[[GREPCENT_TABLE]]
[["","Three Months Ended"],["(in millions, except per share data)","May 1, 2026","","May 2, 2025"],["Net sales","$","23,078","","","$","20,930"],["Net earnings","1,628","","","1,641"],["Diluted earnings per share","$","2.90","","","$","2.92"],["Adjusted diluted earnings per share","$","3.03","","","N/A"],["Net cash provided by operating activities","$","3,350","","","$","3,379"],["Capital expenditures","521","","","518"],["Repurchases of common stock1","365","","","72"],["Cash dividend payments","674","","","645"]]
[[/GREPCENT_TABLE]]

1    Repurchases of common stock on a trade-date basis.

Net sales in the first quarter of fiscal 2026 improved 10.3% to $23.1 billion compared to net sales of $20.9 billion in the first quarter of fiscal 2025. Comparable sales for the first quarter of fiscal 2026 increased 0.6%, consisting of an increase in comparable average ticket of 1.5%, partially offset by a decrease of 0.9% in comparable customer transactions. Net earnings in the first quarter of fiscal 2026 remained consistent with the first quarter of fiscal 2025 at $1.6 billion. Diluted earnings per common share were $2.90 in the first quarter of fiscal 2026 compared to $2.92 in the first quarter of fiscal 2025. Included in the first quarter of 2026 results are pre-tax expenses of $96 million consisting of intangible asset amortization related to the acquisitions of ADG and FBM. Excluding the impact of this item, adjusted diluted earnings per common share were $3.03 in the first quarter of 2026 (see the non-GAAP financial measures discussion).

For the first three months of fiscal 2026, cash flows from operating activities were approximately $3.4 billion, with $521 million used for capital expenditures. Continuing to deliver on our commitment to return cash to shareholders, during the first quarter of fiscal 2026, we paid $674 million in dividends and repaid $2.4 billion of bond maturities as we continued to progress toward our deleveraging commitment.

The first quarter of fiscal 2026 continued to reflect a challenging macroeconomic environment. In addition, winter storms impacted the start of the quarter and delayed the beginning of the spring selling season. As weather improved, customers responded to our seasonal offerings, and we were encouraged by the improvement in demand.

Despite these conditions, we delivered solid first quarter results through disciplined execution and continued progress against our Total Home strategy. We continued to drive growth in Pro, Online and Home Services, supported by our loyalty program, expanded fulfillment options and ongoing investments in technology and productivity initiatives. We remain focused on disciplined execution, productivity and strategic investments that position Lowe’s for sustainable long-term growth.

17

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Tariffs

Beginning in 2025, the United States enacted significant changes to its trade policy and imposed a series of new tariffs on most imported goods. For 2026, the tariff environment remains dynamic and subject to ongoing modification, including court rulings, changes to existing tariffs and potential for additional tariffs this year. We continue to monitor and comply with these changes and evaluate potential impacts, including possible adjustments to our merchandise assortment, pricing, and global supply chain strategies. The Company is the importer of record for certain imported products and pays tariffs directly. The Supreme Court declared on February 20, 2026 that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were invalid. Significant uncertainty remains as to the refund of IEEPA tariffs, including potential for appeal, timing of eligibility in future refund phases, and ultimate amounts to be received.

OPERATIONS

The following table sets forth the percentage relationship to net sales of each line item of the consolidated statements of earnings (unaudited), as well as the percentage change in dollar amounts from the prior period. This table should be read in conjunction with the following discussion and analysis and the consolidated financial statements (unaudited), including the related notes to the consolidated financial statements (unaudited).

[[GREPCENT_TABLE]]
[["","Three Months Ended","Basis Point Increase/(Decrease) in Percentage of Net Sales"],["","May 1, 2026","","May 2, 2025"],["Net sales","100.00","%","","100.00","%","","N/A"],["Gross margin","32.68","","","33.38","","","(70)"],["Expenses:"],["Selling, general and administrative","19.16","","","19.33","","","(17)"],["Depreciation and amortization","2.45","","","2.13","","","32"],["Operating income","11.07","","","11.92","","","(85)"],["Interest \u2013 net","1.73","","","1.61","","","12"],["Pre-tax earnings","9.34","","","10.31","","","(97)"],["Income tax provision","2.29","","","2.47","","","(18)"],["Net earnings","7.05","%","","7.84","%","","(79)"]]
[[/GREPCENT_TABLE]]

The following table sets forth key metrics utilized by management in assessing business performance. This table should be read in conjunction with the following discussion and analysis and the consolidated financial statements (unaudited), including the related notes to the consolidated financial statements (unaudited).

[[GREPCENT_TABLE]]
[["","Three Months Ended"],["Other Metrics","May 1, 2026","May 2, 2025"],["Comparable sales increase/(decrease) 1","0.6","%","","(1.7)","%"],["Customer transactions (in millions) 2","197","","","199"],["Average ticket 2","$","107.65","","","$","105.12"],["At end of period:"],["Number of retail stores","1,759","","","1,750"],["Sales floor square feet (in millions)","196","","","195"],["Average retail store size selling square feet (in thousands) 3","112","","","112"],["Net earnings to average debt and shareholders\u2019 deficit","22.5","%","","26.7","%"],["Return on invested capital 4","26.8","%","","31.0","%"]]
[[/GREPCENT_TABLE]]

1    A comparable location is a retail location that has been open longer than 13 months. A location that is identified for relocation is no longer considered comparable in the month of its relocation. A location we decide to close is no longer considered comparable as of the beginning of the month in which we announce its closing. Comparable sales include online sales, which positively impacted first quarter fiscal 2026 and fiscal 2025 comparable sales by approximately 185 basis points and 65 basis points, respectively. Acquisitions are typically included in comparable sales after they have been owned for more than 12 months.

2 Customer transactions and average ticket represent metrics used by management to evaluate performance of our retail locations.

18

Table of Contents

3    Average store size selling square feet is defined as sales floor square feet divided by the number of stores open at the end of the period.

4    Return on invested capital is calculated using a non-GAAP financial measure. See below for additional information and reconciliations of non-GAAP measures.

Non-GAAP Financial Measures

Adjusted Diluted Earnings Per Share

Adjusted diluted earnings per share is considered a non-GAAP financial measure. The Company believes this non-GAAP financial measure provides useful insight for analysts and investors in understanding the comparison of operational performance for fiscal 2026. Adjusted diluted earnings per share excludes the impact of a certain item, further described below.

Fiscal 2026 Impacts

During fiscal 2026, the Company recognized financial impacts from the following:

•In the first quarter of fiscal 2026, the Company recognized pre-tax expenses of $96 million consisting of intangible asset amortization related to the acquisitions of Artisan Design Group and Foundation Building Materials (Acquisition of businesses).

Adjusted diluted earnings per share should not be considered an alternative to, or more meaningful indicator of, the Company’s diluted earnings per common share as prepared in accordance with GAAP. The Company’s methods of determining non-GAAP financial measures may differ from the method used by other companies and may not be comparable.

[[GREPCENT_TABLE]]
[["","Three Months Ended"],["","May 1, 2026"],["","Pre-Tax Earnings","","Tax1","","Net Earnings"],["Diluted earnings per share, as reported","","","","","$","2.90"],["Non-GAAP adjustments \u2013 per share impacts"],["Acquisition of businesses","0.17","","","(0.04)","","","0.13"],["Adjusted diluted earnings per share","","","","","$","3.03"]]
[[/GREPCENT_TABLE]]

1 Represents the corresponding tax benefit or expense specifically related to the item excluded from adjusted diluted earnings per share.

Return on Invested Capital

Return on Invested Capital (ROIC) is calculated using a non-GAAP financial measure. Management believes ROIC is a meaningful metric for analysts and investors as a measure of how effectively the Company is using capital to generate financial returns. Although ROIC is a common financial metric, numerous methods exist for calculating ROIC.  Accordingly, the method used by our management may differ from the methods used by other companies.  We encourage you to understand the methods used by another company to calculate ROIC before comparing its ROIC to ours.

We define ROIC as the rolling 12 months’ lease adjusted net operating profit after tax (Lease adjusted NOPAT) divided by the average of current year and prior year ending debt and shareholders’ deficit. Lease adjusted NOPAT is a non-GAAP financial measure, and net earnings is considered to be the most comparable GAAP financial measure. The calculation of ROIC, together with a reconciliation of net earnings to Lease adjusted NOPAT, is as follows:

19

Table of Contents

[[GREPCENT_TABLE]]
[["","Four Quarters Ended"],["(In millions, except percentage data)","May 1, 2026","","May 2, 2025"],["Calculation of Return on Invested Capital"],["Numerator"],["Net Earnings","$","6,641","","","$","6,843"],["Plus:"],["Interest expense \u2013 net","1,468","","","1,299"],["Operating lease interest","178","","","176"],["Provision for income taxes","2,104","","","2,166"],["Lease adjusted net operating profit","10,391","","","10,484"],["Less:"],["Income tax adjustment1","2,500","","","2,520"],["Lease adjusted net operating profit after tax","$","7,891","","","$","7,964"],["Denominator"],["Average debt and shareholders\u2019 deficit2","$","29,486","","","$","25,661"],["Net earnings to average debt and shareholders\u2019 deficit","22.5","%","","26.7","%"],["Return on invested capital","26.8","%","","31.0","%"]]
[[/GREPCENT_TABLE]]

1    Income tax adjustment is defined as lease adjusted net operating profit multiplied by the effective tax rate, which was 24.1% and 24.0% for the periods ended May 1, 2026, and May 2, 2025, respectively.

2    Average debt and shareholders’ deficit is defined as average current year and prior year ending debt,

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/60667/000006066726000029/low-20260130.htm
Complete FY 2026 MD&A: /company/LOW/mda/fy2026/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-03-23
Report date: 2026-01-30

Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis summarizes the significant factors affecting our consolidated operating results, financial condition, liquidity and capital resources during the two-year period ended January 30, 2026 (our fiscal years 2025 and 2024). Unless otherwise noted, all references herein for the years 2025, 2024, and 2023 represent the fiscal years ended January 30, 2026, January 31, 2025, and February 2, 2024, respectively.  We intend for this discussion to provide the reader with information that will assist in understanding our financial statements, the changes in certain key items in those financial statements from year to year, and the primary factors that accounted for those changes, as well as how certain accounting principles affect our financial statements. This discussion should be read in conjunction with our consolidated financial statements and notes to the consolidated financial statements included in this Annual Report that have been prepared in accordance with accounting principles generally accepted in the United States of America.  This discussion and analysis is presented in four sections:

•Executive Overview

•Operations

•Financial Condition, Liquidity and Capital Resources

•Critical Accounting Policies and Estimates

EXECUTIVE OVERVIEW

The following table highlights our annual financial results:

[[GREPCENT_TABLE]]
[["(in millions, except per share data)","2025","","2024","","2023"],["Net sales","$","86,286","","","$","83,674","","","$","86,377"],["Net earnings","6,654","","","6,957","","","7,726"],["Diluted earnings per share","$","11.85","","","$","12.23","","","$","13.20"],["Net cash provided by operating activities","$","9,864","","","$","9,625","","","$","8,140"],["Capital expenditures","2,213","","","1,927","","","1,964"],["Repurchases of common stock1","75","","","3,929","","","6,334"],["Cash dividend payments","2,636","","","2,566","","","2,531"]]
[[/GREPCENT_TABLE]]

1    Repurchases of common stock on a trade-date basis.

Net sales for fiscal 2025 increased 3.1% from fiscal 2024 to $86.3 billion. Comparable sales for fiscal 2025 increased 0.2%, consisting of a 3.0% increase in comparable average ticket, partially offset by a 2.8% decrease in comparable customer transactions. Net earnings for fiscal 2025 decreased 4.4% to $6.7 billion. Diluted earnings per common share decreased 3.1% in fiscal 2025 to $11.85 from $12.23 in fiscal 2024. Included in fiscal 2025 results are pre-tax expenses of $321 million consisting of transaction costs and intangible asset amortization related to the acquisition of ADG and FBM, which decreased diluted earnings per share by $0.43 in fiscal year 2025. Included in the fiscal 2024 results is $177 million of pre-tax income associated with the fiscal 2022 sale of the Canadian retail business, which increased diluted earnings per share by $0.24 in fiscal year 2024. Adjusting for these items, adjusted diluted earnings per common share increased 2.4% to $12.28 in 2025 from adjusted diluted earnings per common share of $11.99 in 2024 (see the non-GAAP financial measures discussion).

For fiscal 2025, cash flows from operating activities were $9.9 billion, with $2.2 billion used for capital expenditures. Continuing to deliver on our commitment to return excess cash to shareholders, the Company paid $2.6 billion in dividends during the year.

During 2025, we continued to drive progress across all five key initiatives of our Total Home strategy, which was reflected in the strength we delivered with our Pro customers, online, and home services. Our Total Home strategic initiatives have appealed to both the value-conscious homeowner and the busy Pro customer.

To expand our Pro customer market, we completed the acquisitions of FBM and ADG. We believe these acquisitions, along with our retail home improvement business, provide the large Pro customer with everything they need for the interior space of the home and position the Company to benefit when there is a recovery in the housing industry.

[[GREPCENT_TABLE]]
[["","","24"]]
[[/GREPCENT_TABLE]]

Table of Contents

In addition, we continued to deliver on our Perpetual Productivity Improvement (PPI) initiatives, including completing the rollout of our front-end transformation across our store portfolio, streamlining our Freight Flow process, and driving inventory productivity while also navigating dynamic trade policies and tariffs.

Given the persistent volatility in the housing macro environment, heading into 2026 we continue our focus on our PPI initiatives and managing what is within our control. We are pleased with our current track record of disciplined execution and are confident we are making the right investments to continue to deliver long-term sales growth and sustainable shareholder value.

OPERATIONS

The following table sets forth the percentage relationship to net sales of each line item of the consolidated statements of earnings.  This table should be read in conjunction with the following discussion and analysis and the consolidated financial statements, including the related notes to the consolidated financial statements.

[[GREPCENT_TABLE]]
[["","","","","","Basis Point Increase/(Decrease) in Percentage of Net Sales"],["","2025","","2024","","2023","","2025 vs. 2024","","2024 vs. 2023"],["Net sales","100.00","%","","100.00","%","","100.00","%"],["Gross margin","33.48","","","33.32","","","33.39","","","16","","","(7)"],["Expenses:"],["Selling, general and administrative","19.46","","","18.74","","","18.02","","","72","","","72"],["Depreciation and amortization","2.25","","","2.07","","","1.99","","","18","","","8"],["Operating income","11.77","","","12.51","","","13.38","","","(74)","","","(87)"],["Interest \u2013 net","1.63","","","1.57","","","1.60","","","6","","","(3)"],["Pre-tax earnings","10.14","","","10.94","","","11.78","","","(80)","","","(84)"],["Income tax provision","2.43","","","2.63","","","2.83","","","(20)","","","(20)"],["Net earnings","7.71","%","","8.31","%","","8.95","%","","(60)","","","(64)"]]
[[/GREPCENT_TABLE]]

The following table sets forth key metrics utilized by management in assessing business performance. This table should be read in conjunction with the following discussion and analysis and the consolidated financial statements, including the related notes to the consolidated financial statements.

[[GREPCENT_TABLE]]
[["Other Metrics","2025","","2024","","2023"],["Comparable sales increase/(decrease)1","0.2","%","","(2.7)","%","","(4.7)","%"],["Customer transactions (in millions)2,3","780","","","801","","","827"],["Average ticket3","$","106.13","","","$","102.93","","","$","102.47"],["At end of year:"],["Number of retail stores","1,759","","","1,748","","","1,746"],["Sales floor square feet (in millions)","196","","","195","","","195"],["Average retail store size selling square feet (in thousands)4","112","","","112","","","112"],["Net earnings to average debt and shareholders\u2019 deficit","22.1","%","","27.5","%","","31.6","%"],["Return on invested capital5","26.1","%","","32.0","%","","36.4","%"]]
[[/GREPCENT_TABLE]]

1     A comparable location is a retail location that has been open longer than 13 months. A location that is identified for relocation is no longer considered comparable in the month of its relocation.  The relocated location must then remain open longer than 13 months to be considered comparable.  A location we have decided to close is no longer considered comparable as of the beginning of the month in which we announce its closing. Comparable sales include online sales, which positively impacted comparable sales in fiscal 2025, fiscal 2024, and fiscal 2023 by approximately 105 basis points, 50 basis points, and 25 basis points, respectively. Acquisitions are typically included in comparable sales after they have been owned for more than 12 months.

2    In the first quarter of fiscal 2025, the Company adjusted its customer transactions metric to exclude certain order modifications which were previously included as a separate transaction. The prior year periods have been adjusted to align with the current period presentation.

3    Customer transactions and average ticket represent metrics used by management to evaluate performance of our retail locations.

4 Average store size selling square feet is defined as sales floor square feet divided by the number of stores open at the end of the period.

25

Table of Contents

5    Return on invested capital is calculated using a non-GAAP financial measure. See below for additional information and reconciliations of non-GAAP measures.

Fiscal 2025 Compared to Fiscal 2024

Net Sales – Net sales increased 3.1% to $86.3 billion in fiscal 2025, driven by sales associated with new acquisitions during the year, and an increase in comparable sales of 0.2% over the same period. The increase in comparable sales was driven by a 3.0% increase in comparable average ticket, partially offset by a decline in comparable customer transactions of 2.8%. Comparable sales change during each quarter of the fiscal year, as reported, were a decline of 1.7% in the first quarter, an increase of 1.1% in the second quarter, an increase of 0.4% in the third quarter, and an increase of 1.3% in the fourth quarter.

During fiscal 2025, we had comparable sales increases in five of 14 product categories, including Rough Plumbing, Appliances, Building Materials, Lawn & Garden, and Paint. Strength in these categories reflects continued growth with our Pro customer and online, as well as our broad assortment of appliances available next-day to our customers in the majority of zip codes in the United States.

Gross Margin – Gross margin as a percentage of sales for fiscal 2025 increased 16 basis points compared to fiscal 2024. The gross margin increase for the year was primarily driven by favorability from credit revenue and improvements in inventory shrink, partially offset by the operational cost structure of acquisitions during 2025.

SG&A – SG&A expense for fiscal 2025 deleveraged 72 basis points as a percentage of sales compared to fiscal 2024. This was primarily driven by employee compensation and benefits, along with cycling prior year realized gains on contingent consideration associated with the 2022 sale of the Canadian retail business, partially offset by the operational cost structure of acquisitions during 2025.

Depreciation and Amortization – Depreciation and amortization expense deleveraged 18 basis points for fiscal 2025 as a percentage of sales compared to fiscal 2024, primarily due to amortization of intangible assets of acquired businesses in 2025.

Interest – Net – Net interest expense is comprised of the following:

[[GREPCENT_TABLE]]
[["(In millions)","2025","","2024"],["Interest expense, net of amount capitalized","$","1,471","","","$","1,445"],["Amortization of original issue discount and loan costs","25","","","24"],["Interest on tax uncertainties","3","","","3"],["Interest income","(121)","","","(159)"],["Other","28","","","\u2014"],["Interest \u2013 net","$","1,406","","","$","1,313"]]
[[/GREPCENT_TABLE]]

Net interest expense in fiscal 2025 deleveraged six basis points.

Income Tax Provision – Our effective income tax rate was 23.9% in fiscal 2025 compared to 24.0% in fiscal 2024.

Fiscal 2024 Compared to Fiscal 2023

For a comparison of our results of operations, financial condition, liquidity, and capital resources for the fiscal years ended January 31, 2025, and February 2, 2024, see “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the fiscal year ended January 31, 2025, filed with the SEC on March 24, 2025.

[[GREPCENT_TABLE]]
[["","","26"]]
[[/GREPCENT_TABLE]]

Table of Contents

Non-GAAP Financial Measures

Adjusted Diluted Earnings Per Share

Adjusted dilute

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2026 MD&A: /company/LOW/mda/fy2026/
All MD&A years: /company/LOW/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2025 MD&A](/company/LOW/mda/fy2025/): filed 2025-03-24; accession 0000060667-25-000049 (https://www.sec.gov/Archives/edgar/data/60667/000006066725000049/low-20250131.htm)
- [FY 2024 MD&A](/company/LOW/mda/fy2024/): filed 2024-03-25; accession 0000060667-24-000033 (https://www.sec.gov/Archives/edgar/data/60667/000006066724000033/low-20240202.htm)
- [FY 2023 MD&A](/company/LOW/mda/fy2023/): filed 2023-03-27; accession 0000060667-23-000034 (https://www.sec.gov/Archives/edgar/data/60667/000006066723000034/low-20230203.htm)
- [FY 2022 MD&A](/company/LOW/mda/fy2022/): filed 2022-03-21; accession 0000060667-22-000038 (https://www.sec.gov/Archives/edgar/data/60667/000006066722000038/low-20220128.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 5211 Retail-Lumber & Other Building Materials Dealers) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units
- [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
- [RSAFS](/indicator/RSAFS/): Advance Retail Sales: Retail Trade
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/LOW.md · JSON record: /company/LOW.json · verified financials: /company/LOW/financials.json / /company/LOW/financials.csv · machine TOC for the whole site: /llms.txt