Lowe’s stock surged after raising its 2025 forecast and reporting 1.1% same-store sales growth, beating Wall Street expectations. The retailer also announced an $8.8 billion deal to acquire Foundation Building Materials. CEO Marvin Ellison credited the growth to strong performance in both Pro and DIY segments. Shares rose 3% in premarket trade.

In Q2, Lowe’s reported adjusted EPS of $4.33, surpassing the $4.24 estimate. Revenue totaled $23.96 billion, slightly below the $23.98 billion projection. The company revised its 2025 sales guidance to $84.5-$85.5 billion, up from $83.5-$84.5 billion, while same-store sales are expected to stay flat to up 1%.

Lowe’s faces tariff uncertainty as it sources 20% of sales from China. Executives aim to decrease exposure to China. In contrast, Home Depot sources 50% of products domestically and missed earnings estimates in Q2. However, Home Depot’s stock rose due to a 3.3% increase in same-store sales in July.

Read more at Yahoo Finance: Lowe’s stock rises after same-store sales return to growth, company raises 2025 forecast