Residence Depot vs. Lowe’s: Which Is the Higher Purchase Forward of Q2 2025 Earnings?…

The tariff-driven value pressures have remained muted thus far attributable to delayed implementation. Nonetheless, most tariffs take impact on August eight, and Trump’s momentary truce with China solely postpones the affect. If firms start passing on these prices, customers might scale back massive purchases. This might weigh on big-ticket gross sales at each retailers heading into Q3.

Residence Depot Outperforms Lowe’s in Earnings and Income Progress

Residence Depot delivered stronger earnings in Q1 2025. The corporate reported web earnings of $three.four billion, or $three.45 per share, in comparison with Lowe’s $1.6 billion, or $2.92 per share. Regardless of a slight drop from final 12 months’s EPS of $three.63, Residence Depot nonetheless outperformed Lowe’s in revenue and earnings per share. The distinction displays Residence Depot’s stronger working leverage and scale within the dwelling enchancment sector.

Furthermore, Residence Depot’s Q1 gross sales elevated 9.four% year-over-year to $39.9 billion, whereas Lowe’s skilled a decline in gross sales from $21.four billion to $20.9 billion, down 2.three%. Residence Depot’s skill to develop regardless of macro headwinds alerts higher resilience and stronger demand throughout its bigger retail footprint.

Residence Depot’s US comparable gross sales grew zero.2%, whereas total comparable gross sales declined zero.three%. However, Lowe’s posted a 1.7% decline in comparable gross sales. Lowe’s attributed this to unfavourable climate, however the broader hole suggests weaker buyer visitors and slower execution relative to Residence Depot.

For fiscal 2025, Residence Depot expects whole gross sales progress of two.eight%, with comparable gross sales up 1.zero%. It plans to open 13 new shops and preserve a gross margin of 33.four%. Nonetheless, Lowe’s tasks flat to 1% comparable gross sales progress, and whole income between $83.5B–$84.5B, with decrease working margins of 12.three%–12.four% versus Residence Depot’s projected 13.zero%.

The chart beneath reveals the income estimates for the 2 fiscal years forward. It’s noticed that the Residence Depot’s income is climbing to $178.33 billion, almost double Lowe’s estimate of $90.68 billion. Whereas each firms have stabilised their footprints, Residence Depot’s upward pattern alerts stronger market expectations and better investor confidence heading into the remainder of 2025.