Lowe’s details plans to be ‘price competitive’ in midst of Trump tariffs

Without mentioning President Donald Trump’s divisive tariffs by name, Lowe’s CEO Marvin Ellison started Wednesday’s first-quarter earnings call sharing how the Mooresville home improvement company is tackling its supply chain.

Roughly 60% of Lowe’s purchases originate in the U.S., or approximately $30 billion on an annual basis, Ellison said.

“Over the past several years, we’ve been partnering with our private and national brand suppliers to diversify our global sourcing efforts,” Ellison said. “As a result, approximately 20% of our purchase volume is currently concentrated in China.

“Although we’re pleased with this reduced dependency, we’re not satisfied and we’re working to accelerate our diversification efforts,” Ellison said.

Lowe’s receives products from Canada, Mexico, China and other parts of Southeast Asia, like South Korea, Ellison previously said. While some Trump tariffs have been paused or adjusted since early April, many remain in effect. That includes 10% tariffs on all countries, with higher rate imposed on countries like Canada, Mexico and China.

Lowe’s is looking at partnerships with private and national brand suppliers to find different countries to source from, Bill Boltz, Lowe’s executive vice president of merchandising, told analysts answering questions following the earnings call.

“You can just imagine the level and magnitude of work that’s required when you have to go do this SKU by SKU, vendor by vendor,” Boltz said.

Holiday trim and trees, ceiling fans, small appliances and tools are part of the 20% sourced from China, Boltz said. No examples were provided by Lowe’s executives as to how the company is diversifying the countries of origin for its products.

“We’ve been working really hard over the last four or five years to diversify, just as everybody has,” Boltz said, “and partnering closely with both private and national brand suppliers to find different sourcing locations. We’re also trying to accelerate that as it relates to our private brand portfolio.”

Asked by an analyst about potential price increases, Ellison said Lowe’s has tools for price management.

Just last week, giant U.S. discount retailer Walmart executives said despite tariffs being temporarily lowered, it may soon have to increase prices for shoppers as it deals with higher costs. Closer to home, Charlotte international grocers reported seeing big price increases and supply disruptions from the tariff fights.

“I think the key point for us is that we’re going to be price competitive,” Ellison said. “We’re not in the habit of donating market share to the competition. And so in this environment, we’re going to be as keenly focused on competing on price as we are every single day.”

Lowe’s 1Q earnings report

Lowe’s reported net earnings of $1.6 billion for the quarter ending May 2, down from $1.8 billion the same period last year.

Total sales for the quarter were $20.9 billion, compared to $21.4 billion in the prior-year’s first quarter. Comparable sales for the quarter decreased 1.7% blamed on unfavorable weather earlier in the year, while pro and online sales grew.

“Although we are pleased with our continued progress in customer service, our financial results also reflect ongoing pressure in DIY, bigger ticket, discretionary demand and a slower start to spring versus last year,” Ellison said.

As of May 2, Lowe’s operates 1,750 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.

This story was originally published May 21, 2025 at 11:32 AM with the headline "Lowe’s details plans to be ‘price competitive’ in midst of Trump tariffs."