Lowe’s gave workers unexpected bonuses of up to $10K after better than expected earnings

Some Lowe’s employees will be getting a bonus up to $10,000.

The Mooresville-based home improvement chain is giving $80 million in discretionary bonuses, Lowe’s CEO Marvin Ellison said Wednesday during the company’s fourth-quarter earnings call.

Lowe’s reported “better-than-expected” earnings results despite “a difficult home improvement macro environment,” Ellison said on the call.

After the call, Ellison told The Charlotte Observer and other local media he was pleased that Lowe’s could end the year in a financial position to provide store managers and assistant managers with the unexpected bonuses.

Store managers will receive about $10,000, while assistant managers will get about $5,000.

“We were just really happy to be able to provide that to them in recognition for their hard work and great customer services,” Ellison said.

As of Jan. 31, Lowe’s operates 1,748 stores. Lowe’s employs about 300,000 people, mostly hourly. Lowe’s has about 11,000 employees in the Charlotte region, including 5,000 corporate workers.

Lowe’s 4Q earnings report

Lowe’s revenue remained flat at $18.6 billion compared to the same period last year, but exceeded forecasts of $18.3 billion. Comparable sales increased 0.2%.

Ellison attributed the results to increasing pro and online sales, strong seasonal performance and rebuilding efforts in the wake of recent hurricanes.

Similar to last year’s fourth quarter, unfavorable winter weather also impacted sales, Ellison said.

Lowe’s also is facing challenges in the home improvement market due to higher mortgage rates, higher home prices and cautious do-it-yourself spending, particularly on big-ticket projects.

Lowe’s is preparing for its biggest season of the year this spring, and other plans this year, including:

▪ Leaning into its loyalty program for pros and DIY with more offers.

Pro results show high single-digit growth for the second consecutive quarter, driven by improved inventory, job site delivery and digital experience, Ellison said.

Since launching last year, the DIY loyalty program has a “base of 30 million members who are now out- spending nonmembers by nearly 50%,” Bill Boltz, Lowe’s executive vice president of merchandising, said.

▪ Opening five to 10 stores this year.

▪ Launching an AI-powered home improvement virtual advisor.

▪ Expanding essential brand products priced at $10 and below, including items like clothes hangers, gardening tools and water cans. Next month, the company will launch its first AI-powered home improvement virtual advisor.

Lowe’s 2025 sales forecast is flat, ranging from $83.5 billion to $84.5 billion. Home improvement market growth and pro-business to outpace DIY, Brandon Sink, executive vice president and chief financial officers said during the earnings call.

This story was originally published February 26, 2025 at 2:36 PM with the headline "Lowe’s gave workers unexpected bonuses of up to $10K after better than expected earnings."