Lowe’s grew online sales by double digits in its fiscal Q3, helping lift total sales in the quarter as consumers also made larger purchases from the home improvement retailer.

Total Lowe’s sales in its fiscal Q3 reached $20.81 billion. That’s about 3.2% growth from $20.17 billion the prior year. Lowe’s fiscal Q3 2025 ended Oct. 31.

Year over year, sales grew 2.5% in August and 0.9% in September. They decreased 2.6% in October, which the company attributed to less storm-related demand than that month in 2024. In Q3, Lowe’s average order value (AOV) grew 3.4%. Chief financial officer Brandon Sink told investors on Lowe’s quarterly earnings call that Pro customers and appliance sales led that growth. At the same time, larger-ticker purchases and “modest price increases” helped, as comparable transactions declined 3% year over year, he said.

During the quarter, the company noted, it paid $129 million in pre-tax expenses associated with its acquisitions of Foundation Building Materials (FBM) and Artisan Design Group (ADG).

President and CEO Marvin Ellison told investors that Lowe’s is benefiting from what it calls its “Pro extended aisle.” The feature is a direct interface with supplier systems that allows Pro sales associates “to sell directly from their product catalogs, with the suppliers fulfilling their orders directly to the job site,” he said. “This expands our product assortment, inventory quantities and delivery capabilities for larger orders.”

Lowe’s is No. 11 in the Top 2000 Database. The database ranks North America’s largest online retailers by annual ecommerce sales. Digital Commerce 360 projects Lowe’s online sales will reach $12.17 billion in 2025.

Lowe’s online sales in Q3

In Q3, Lowe’s online sales grew 11.4% year over year. Lowe’s attributed the growth to increased web traffic and “continued strong conversion.”

It said it’s enhancing the online experience across lowes.com and its mobile app “to make it simpler and faster for DIY and Pro customers to find all the products they need,” Ellison said. “Looking ahead, we’re pleased with the ongoing build-out of our marketplace. This allows us to expand our product assortment to offer our customers everything they need for their homes across the price spectrum from value to premium without assuming the risk of owning the inventory.”

In May, the retailer shared that it was working to scale the Lowe’s Marketplace it had launched in December 2024. It’s working with software company Mirakl, which provides marketplace infrastructure to retailers. Lowe’s third-party online marketplace is a part of its broader digital strategy to become an increasingly flexible omnichannel retailer.

“This allows us to expand our product assortment to offer our customers everything they need for their homes across the price spectrum from value to premium without assuming the risk of owning the inventory,” Ellison told investors.

He added that Lowe’s is “leveraging” its loyalty program with the aim of making customers prefer to choose the retailer first and shop there more often. MyLowe’s Rewards members shop twice as often and spend over 50% more than non-members, according to Ellison.

How Lowe’s is using generative AI to boost sales

Lowe’s has built virtual assistants Mylow and Mylow Companion using OpenAI’s platform. They’re answering almost a million questions per month, Ellison told investors.

And customers engaging with Mylow convert at a rate more than double those who don’t. Ellison called that “clear evidence that AI is simplifying decision-making and driving sales.”

Additionally, customer satisfaction scores are about 2% higher when employees use Mylow Companion to help consumers shop in stores, Ellison said.

“And every interaction with our virtual assistant is feeding our proprietary models, allowing us to continually improve accuracy and build a durable advantage in home improvement expertise,” he added.

He said Lowe’s is “not just experimenting with AI, but operating at a true enterprise scale.”

Still, the retailer has planned more AI initiatives to “drive further enhancements to the Pro and DIY customer experience, both in-store and online,” Ellison said. “This will include our participation in agentic commerce so we can continue to meet our customers where and how they choose to shop.”

Check back for more earnings reports. Click here to read last quarter’s article on Lowe’s earnings and online sales.

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