Wobbly Consumer Weighs on Near Term Demand at Lowe's but Brand Positioned for Long-Term Success

Lowe's is the second-largest home improvement retailer globally, set to capture around $86 billion in sales in fiscal 2025. With a perpetual focus on retail fundamentals (merchandising, operational efficiency, supply chain improvements, omnichannel shopping experience, and customer engagement), Lowe's has been able to leverage costs while maintaining its low-cost position. The firm retains some of its cost savings and passes the rest on to its customers through everyday low prices, creating a flywheel effect. Intangible asset and scale-based cost advantages support our wide moat rating.