Lowe's Q1 Promotions and Future Outlook for Seasonal Events

Q1 promotion cadence: what it looked like vs. the “room for promotions” in prior guidance

In Q1, management emphasized that Lowe’s stayed consistent with its historical promotional cadence year-over-year rather than escalating promotions in a way that would meaningfully depart from normal patterns. ¹ Specifically, they said that when thinking about promotional cadence, they were “very consistent with how we perform year-over-year,” and that they were “very consistent with how we have historically executed promotions.” ¹

They also tied Q1 promotional activity to clear “spring season” merchandising and sales-driving execution—most notably SpringFest, described as an effective in-quarter event:

• Lowe’s referenced its third annual SpringFest in Q1 and said they were “really pleased with how we executed,” including strong member offers and a strong in-store event with merchants bringing offers to drive traffic and conversion both in-store and online. ²

In addition, management framed Q1 promotions within the broader strategy of remaining competitive and “driving sales” through targeted, seasonal initiatives tailored for the environment—while maintaining the expectation that those investments are already baked into guidance:

• They said they would “remain competitive and drive sales” in this environment, especially in key seasonal categories and events, and noted customers’ responses were consistent with expectations. ³
• They stated that at the beginning of the year they planned to invest in “sales driving initiatives tailored around this,” and that the company’s guidance of 11.6% to 11.8% (fully contemplated that investment). ³

What to expect in Q2 and the rest of the year: promotions appear to be “event-driven,” not a sudden acceleration

Q2: promotions should intensify around major seasonal events, but the company frames it as normal operational cadence

While Q1 promotions were characterized as consistent with history, Lowe’s expectation for the upcoming period is explicitly event-heavy, with Q2 described as featuring major holidays and associated go-to-market plans.

• Management highlighted Memorial Day in front of them, and then “June and July” as another run of major events, including July 4th execution. ²
• They also reiterated that promotional cadence is consistent overall year-over-year, but they’re excited about what they were able to do with SpringFest and what’s coming in the second quarter. ¹

From an operational/go-to-market perspective, Q2 is positioned as a continuation of Total Home and seasonal merchandising initiatives, not a change in promotional philosophy:

• Lowe’s said it expects Total Home strategic initiatives (including Pro, Loyalty, Online and Home Services) to continue driving performance into Q2. ⁴
• They guided that Q2 comp sales are expected to be roughly in line with the midpoint of the full-year guide, and that adjusted operating margins will be pressured due in part to “investments in our sales driving actions” that are more focused in the second quarter because of spring mix and key holidays. ⁴

That last point is important for your “room for possible promotions” theme: it suggests that the company expects greater promotional/sales-driving investment intensity in Q2 due to seasonality and holiday timing, while still maintaining discipline and consistency overall. ⁴

Rest of the year: promotional intensity is framed as disciplined, with comparisons and anniversary effects later in the year

For “heading into the rest of the year,” Lowe’s commentary repeatedly emphasizes:

1. Back-half sales initiatives and when they “kick in,” and
2. Managing margin pressure from sales-driving investments and acquisition-related anniversarying.

Two excerpts support that framing:

• Management said they believed at the beginning of the year that sales growth would be more in the back half than the front half, based on cadence of year-over-year comparisons and when initiatives are expected to kick in. ⁵
• For Q2 specifically, they guided that margin pressure would include investments in sales-driving actions more focused in the second quarter and then referenced other effects (including acquisitions) that will “anniversary” in the second half of the year. ⁴

Separately, on promotional execution and competitiveness, management reaffirmed they planned to take share in the back half and continue executing with discipline despite uncertainty:

• They stated they plan “to take share for the back half of the year.” ⁶
• They also said they were confident in execution “with discipline while navigating within the current uncertain environment.” ⁴

Bottom line answer to the question

• How does that look in Q1?
  Promotions in Q1 appear to have stayed within Lowe’s historically consistent promotional cadence, with standout effectiveness tied to SpringFest (member offers, strong in-store event, traffic/conversion both in-store and online). ¹² Management also indicated Q1 sales-driving investment was already accounted for in the guidance framework (11.6%–11.8%). ³

• Thoughts around promotions heading into the rest of the year?
  Management’s tone suggests the promotional “lift” is expected to be event-driven and seasonally concentrated, especially in Q2 (Memorial Day, then the run into July 4th) rather than a broad promotional escalation inconsistent with history. ¹² They explicitly guided that sales-driving investments are more focused in Q2, which contributes to margin pressure, while still expecting comps to land around the guide midpoint and emphasizing disciplined execution through the year’s later periods. ⁴