Despite tariffs and other macroeconomic headwinds, Lowe’s managed to grow both net sales and online sales year over year during its fiscal Q2.

Moreover, the home improvement retailer is also seeing success in its Pro segment, which boosted its overall Q2 earnings results. Among Lowe’s second-quarter highlights, the North Carolina-based retail chain recorded a 1.6% year-over-year increase in total sales to $24.0 billion. Comparable sales grew 1.1% over the same period, while operating income and net income were each up 0.6%, reaching $3.5 billion and $2.4 billion, respectively.

The company updated its full-year guidance, projecting total sales between $84.5 billion and $85.5 billion, up from prior guidance targeting $83.5 billion to $84.5 billion.

Lowe’s online sales up in Q2

Lowe’s CEO Marvin Ellison highlighted online sales gains on its earnings call, saying they increased 7.5% from a year earlier.

According to Ellison, that improvement was “partly driven by a more immersive shopping experience and increased traction from our Lowe’s Rewards, which is helping us increase customer loyalty and drive repeat purchases.” In addition, he cited Lowe’s “first home improvement creator network with MrBeast, the world’s most followed creator among the first to join.”

Also a major part of Lowe’s earnings announcements was the purchase of California-based Foundation Building Material, which distributes interior building products including drywall, metal framing, ceiling systems, insulation, commercial doors and hardware, and other complementary products. Lowe’s bought FBM for approximately $8.8 billion in cash.

“The acquisition of FBM strengthens our portfolio, diversifies our revenue streams, and allows us to capture a larger portion of Pro sales, all of which is expected to deliver significant long-term value to our shareholders,” said Lowe’s CEO Marvin Ellison.

Ellison predicted the purchase would allow Lowe’s to tap into new customer segments.

“We’re now well positioned to not only continue driving growth with our core DIY and small-to-medium Pro customers, but this acquisition also unlocks our ability to serve the larger Pro within a $250 billion total addressable market,” Ellison said.

The Pro market has already been growing for Lowe’s. Pro business helped boost Lowe’s online sales, alongside ecommerce sales and My Lowe’s Rewards.

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 Lowe’s online sales will reach $11.90 billion in 2025.

Lowe’s web sales by year

Lowe’s recent acquisitions

The FBM purchase comes on the heels of Lowe’s recent purchase of Artisans Design Group, which was also done to boost Pro performance.

Elizabeth Lafontaine, director of research at Placer.ai, a foot-traffic analytics company, said Home Depot faces increasing competition from Lowe’s in the Pro space.

“Lowe’s and Home Depot’s investment in building materials signals a play to compete for professional business,” Lafontaine stated.

She characterized Home Depot as the leader among professional buyers, with Lowe’s capturing more of a traditional consumer looking to invest in their own home projects. However, the Foundation purchase builds on Lowe’s brand equity and offers a new solution to professional builders and contractors.

Jason Wingate, CEO of Emerald Ocean Ltd, a brand consultancy and manufacturer that sells tools in Lowe’s, said the acquisitions will help Lowe’s further penetrate the Pro segment.

“This will hopefully accelerate Pro growth while integrating new and advanced digital tools, letting Lowe’s capture more contractors without building all of this out from scratch,” Wingate assessed.

Wingate stated that Lowe’s is doing a lot of things right, with 30% Pro penetration and its online sales growth.

“They are making smart AI investments with NVIDIA, OpenAI, and Palantir partnerships,” Wingate said.  He also touted their increasingly effective loyalty program for driving sales.

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