Home Depot and Lowe's Report Strong Q4 Earnings but Warn of Challenges Ahead

Both home improvement giants exceeded Wall Street expectations for the fourth quarter, yet high interest rates and a slow housing market temper their 2025 outlooks.

Home Depot posted Q4 revenue of $39.7 billion, a 14% year-over-year increase, and adjusted earnings per share of $3.13, surpassing analyst estimates.
Lowe's reported Q4 revenue of $18.55 billion, slightly declining year-over-year but beating forecasts, with adjusted earnings per share of $1.93.
Both companies saw a return to positive comparable sales growth after eight consecutive quarters of declines, with Home Depot up 0.8% and Lowe's up 0.2%.
Executives from both retailers highlighted ongoing pressure on large remodeling projects due to high interest rates, though smaller projects and hurricane recovery efforts boosted sales.
Looking ahead, Home Depot forecasts a 2.8% increase in total sales for 2025, while Lowe's anticipates flat to 1% comparable sales growth, reflecting cautious optimism in a challenging market.