Online sales helped Lowe’s to beat expectations in its fiscal Q4 ended on Jan. 31, even as sales remained flat from the same period a year earlier. Comparable sales increased by 0.2% year over year.
Lowe’s is No. 11 in the Top 2000 Database, which ranks North America’s largest online retailers by annual ecommerce sales. The retailer is in the Hardware & Home Improvement category. Digital Commerce 360 projects that Lowe’s online sales will reach $11.48 billion in 2025.
Lowe’s web sales by year
Lowe’s sales and online results in Q4
Key takeaways in Lowe’s fourth-quarter earnings:
- Lowe’s will launch an AI-powered Home Improvement Virtual Adviser on Lowes.com which should further boost online interaction.
- “This remains a challenging home improvement market,” said CEO Marvin R. Ellison.
- Pro business also continues to grow.
North Carolina-based Lowe’s Companies reported Q4 growth with net earnings of $1.1 billion for the quarter ended Jan. 31. This total is up from the $1.02 billion during the same period the previous year.
Net sales for the quarter reached $18.6 billion, within 0.3% of the comparable period a year earlier. The retailer’s comparable sales growth of 0.2% was powered partly by 9.5% growth year over year in online sales.
In addition, the company pointed to record-breaking sales during the Black Friday and Cyber Monday holiday. It also pointed to strong interest from consumers in the free DIY loyalty program and MyLowe’s Rewards as growth factors. The company recently launched a revamped loyalty program for Pro customers.
“We’re generating excitement and driving more traffic to Lowes.com,” Ellison said during the Q4 earnings call.
Ellison explained on the earnings call that areas of the stores’ sales related to DIY haven’t really rebounded after being “under pressure since 2019.”
“I think one thing we said consistently is that DIY discretionary big-ticket is under pressure,” Ellison said on the earnings call.
That pressure, he noted, has continued to have an impact.
“With 70% of our revenue coming from the DIY customer, when those big-ticket discretionary categories feel pressure, it disproportionately impacts our business and our revenue,” Ellison stated.
Online and omnichannel successes for Lowe’s
The Q4 rise in Lowe’s online sales follows 6% growth online in Q3.
Joseph McFarland, executive vice president of stores, also touted a streamlined buy online, pick up in store (BOPIS) process that will continue to foster growth online.
“Now, it’s easier than ever for customers to get in and out quick, while they’re picking up their online orders,” McFarland said on the earnings call.
Other Lowe’s sales highlights from Q4 include:
- Pro sales growth: High single-digit comps in Q4
- Full-year 2024 sales: $83.7 billion
- 2025 sales outlook: $85.5 billion to $84.5 billion
- New store openings in 2025: 5 to 10 new stores planned
Martin Balaam, founder and CEO of digital commerce software platform Pimberly, said he’s not surprised by Lowe’s online sales growth in Q4 and thinks there is even more room for the company to grow virtually, especially in its Pro business.
“While the next generation of contractors is expecting to do business on their mobile devices, it’s also vitally important that Lowe’s invests in B2B online technology to make the Pro’s life easier — such as the ability to easily allocate any online order to a project and be able to pre-load a project’s material requirements so the Pro can call these off as they need them,” Balaam said.
Lowe’s rolling out their AI features is coming at the right time, Balaam added.
“Our digital enhancements are earning outside recognition, as Forrester just rated the Lowe’s mobile app as the overall digital experience leader in U.S. retail mobile apps, highlighting not just table stake functionalities and omnichannel features, but also innovative AI-enabled solutions like Style Your Space that helps customers reimagine rooms they want to refresh through the touch of a button,” Ellison assessed on the earnings call. “Next month, in collaboration with OpenAI, we will launch the first AI-powered Home Improvement Virtual Adviser on Lowes.com, leveraging the same technology that our associates are using on their store companion app to give our customers helpful advice as they tackle their home improvement projects.”
The CEO voiced optimism that investments in that adviser will pay off.
“This new virtual advisor will provide Lowe’s customers with both project know-how and product recommendations with direct links to specific Lowe’s products for a seamless checkout,” he explained. “This is another example of how we’re leaning into emerging technology to enhance the customer experience, saving them both time and money.”
Percentage changes may not align due to rounding. Check back for more earnings reports. Here’s last quarter’s update on Lowe’s online sales.
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