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Dive Brief:
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Lowe’s is focused on improving the experience for professional contractors and online shoppers to accelerate sales, executives said on a Q1 2025 earnings call Wednesday.
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Pro sales and digital sales were bright spots in its earnings. Both saw mid-single-digit growth, which offset comparable sales decline of 1.7% year over year, according to an earnings report.
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“We feel great about our pro business,” CEO Marvin Ellison said. “And we also are really pleased with the adoption of our updated pro loyalty program, MyLowe's Pro Rewards, the ease of use and also the number of new customers that are joining the platform.”
Dive Insight:
Lowe’s is courting professional contractors and strengthening its online experience to bolster its bottom line.
The retailer reported net earnings of $1.6 billion, according to an earnings report. Executives attributed the decline in comparable sales to the pullback in discretionary spending by DIY customers and bad weather early in the quarter.
“Despite ongoing challenges in the housing market, we are pleased with our team's focus and execution in the face of significant macro uncertainty. We continue to deliver operational excellence, combined with value and outstanding service to our customers,” Ellison said.
The retailer credited its updated pro loyalty program for the momentum in pro sales. The program, which was rolled out in February, emphasizes simplicity and convenience. Lowe’s expects the program to drive greater utilization, repurchases and higher spend.
“Pros only need to provide their phone number and check out, getting them back to the job site faster, and joining has never been easier with the addition of our new Spanish language enrollment option,” said Joe McFarland, EVP of stores.
Lowe’s DIY loyalty program, MyLowe’s Rewards, also saw growth, reaching over 30 million members in the first quarter. Members spend nearly 50% more than nonmembers.
Lowe’s has been investing in AI to improve the digital shopping experience. The retailer launched Mylow, an AI-powered adviser, in March, which can provide “step-by-step instructions for any project with any level of complexity from how to fix a leaky faucet to how to build a deck and everything in between,” Ellison said.
Earlier this month, the retailer rolled out Mylow Companion for store associates across Lowe’s more than 1,700 stores. The AI adviser has access to product details, product advice and inventory information.