Target And Lowe's Earnings Are Out: What Shoppers Need To Know

Forbes

21-05-2025

DALY CITY, CA - AUGUST 13: School teacher Liza Gleason shops for back to school supplies at a ... More Target store August 13, 2008 in Daly City, California. With stores gearing up for back to school shopping, the Commerce Department reported today that retail sales fell 0.1 percent in July, the first time in five months. (Photo by)
The first few months of 2025 were bumpy for many big retailers and the US stock market. The world had to adjust to tariffs and GDP contracted in Q1. Many people on Wall Street think we are in a recession but only time will tell. On Wednesday, two of America's best-known names—Target and Lowe's—just reported their latest quarterly results. Both companies are facing challenges, but they're also making changes that will affect how people shop and what they can expect in stores and online. Here's a closer look at the data and what it means for both Main Street and Wall Street.
Target and Lowe's: What Their Latest Results Mean for Shoppers
In the premarket, Target is lower but Lowes is a little higher. Both companies are facing challenges, but they're also making changes that will shape how consumers shop going forward. Here's a closer look at the data:
Target Missed Its Target: Sales and Profits Fall Short
According to EarningsWhisper.com, Target reported earnings of $1.30 per share on revenue of $23.85 billion for the fiscal first quarter ended April 2025. The consensus earnings estimate was $1.62 per share on revenue of $24.54 billion. The Earnings Whisper number was $1.62 per share.
The company missed expectations by 19.75% while revenue fell 2.79% compared to the same quarter a year ago. The company said it expects fiscal 2026 earnings of $7.00 to $9.00 per share on revenue of approximately $103.9 billion.
The company's previous guidance was earnings of $8.80 to $8.90 per share on revenue of approximately $107.63 billion and the current consensus earnings estimate is $8.54 per share on revenue of $107.38 billion for the year ending January 31, 2026.
Guidance: Target now expects to earn between $7.00 and $9.00 per share for the full fiscal year, with revenue around $103.9 billion. This is lower than its previous forecast and below what analysts had expected.
What Happened:
Target's sales and profits both fell short of expectations. Put simply, people are buying less things from Target. Fewer shoppers are coming into stores, and many are spending less, especially on non-essential items like clothing and home goods.
However, there's some good news: Target's digital sales grew by 4.7%. More customers are shopping online and using services like same-day delivery and curbside pickup which is encouraging. Special events, like Valentine's Day and Easter, did better than regular weeks, and a new designer collection with Kate Spade was a big hit.
Target says it's working to make decisions faster and focus on what matters most, investing in its stores, website, and new ideas, but also being careful with its spending.
My 3 Takeaways & What This Means for Shoppers:
More Online Options: Based on the latest quarter and evolving consumer trends, I believe Target will keep improving its website and app, making it easier to shop from home and get things delivered faster.
More Deals and Promotions: Normally, when sales slip, deals and promotions go up. Target may offer more discounts and special offers to bring shoppers back, especially online since that is what's working right now.
Focus on Convenience: We live in a world where people love convenience. Same-day delivery and easy pickup will likely become even more important as Target tries to make shopping as simple, fast, and easy, as possible.
Now let's look at Lowes.
Lowe's: Meets Profit Expectations, Sales Dip
According to EarningsWhisper.com, Lowe's Companies (LOW) reported earnings of $2.92 per share on revenue of $20.93 billion for the fiscal first quarter ended April 2025.
The consensus earnings estimate was $2.88 per share on revenue of $20.95 billion. The Earnings Whisper number was $2.92 per share. The company reported in-line with expectations while revenue fell 2.03% compared to the same quarter a year ago.
Guidance: The company said it continues to expect fiscal year earnings of $12.15 to $12.40 per share on revenue of $83.50 billion to $84.50 billion. The current consensus earnings estimate is $12.21 per share on revenue of $84.21 billion for the year ending January 31, 2026.
What Happened:
Lowe's earnings beat what experts expected, but sales missed estimates.
This means that fewer people are taking on big home renovation projects right now, mostly because borrowing money is more expensive (thanks to higher interest rates) and the housing market has slowed down considerably. Instead, shoppers are focusing on smaller repairs and maintenance which is normal at this time in the cycle.
If you look a little deeper, Lowe's is seeing more business from professional customers like contractors and property managers, and its online sales are growing, too.
What This Means for Shoppers:
Stable Prices: From what I can tell, Lowe's is not planning big price hikes due to the tariff situation and it's working to keep costs under control.
Better Service: The company is putting more effort into training employees and making stores easier to shop, which should mean better service for its customers.
More for Pros: If you're a contractor or manage properties, expect more from Lowes. Maybe better loyalty programs and/or special services just for you.
Online Improvements: Like Target, Lowe's is making it easier and more convenient to shop online and pick up orders quickly.
Why Are Retailers Facing Challenges?
Both Target and Lowe's are dealing with similar issues:
Tariffs: Retailers are directly impacted by tariffs. For now, they are dealing with it but we'll see what happens going forward.
Shoppers Are Careful: With prices and interest rates still high, people are thinking twice before making big purchases or buying things they don't really need.
Shift to Online: Another big shift is that people are shopping online more and more these days. Big box retailers have to keep up by offering fast delivery and easy returns, among other perks to attract buyers.
Competition Is Fierce: Whether it's Amazon, Walmart, Home Depot, or local stores, there are lots of choices, so retailers have to work harder to keep customers coming back.
Economic Uncertainty: No one is sure what the rest of the year will bring, so companies and consumers are both being cautious about spending and hiring.
What to Watch For As A Shopper Or Investor
Here's how these trends could affect your next trip to Target or Lowe's:
1.Reaction To Earnings - After looking at the numbers, the most important thing I look for during earnings season is how each stock (and the market) reacts to earnings. All things equal, I like to see stocks rally after reporting earnings, not fall. Also, it is important to note that earnings tell us what happened in the past (last quarter), the market is looking forward (current and future quarters)
2. More Digital Tools and Services
Consumers can expect a better online experience. Many retailers will be investing in their digital assets to make better apps, offer more online-only deals, and create easier ways to get what you need delivered or ready for pickup - faster.
3. Promotions and Loyalty Perks
If we are in a recession, or even a lull, I expect more companies will create special offers to encourage spending, especially on their websites or loyalty programs.
3. A Better Store Experience
In the future, we might see retailers create better experiences in their stores to attract buyers. That might become a big plus that online only stores can't do.
Looking Forward
Many retailers are focusing on investing in technology, improving online shopping, and working to make stores more helpful and efficient. For shoppers, this means you'll probably see more convenience, better service, and plenty of chances to save money through deals and promotions.
As Target and Lowe's adapt to a changing retail world, shoppers can expect a focus on what matters most: good prices, great service, and shopping that fits your life. Whether you're picking up groceries, fixing a leaky faucet, or just browsing for something new, these companies want to make sure you get the best value and the best experience every time you shop. Investors will be looking for a bullish catalyst to send these stocks higher.