Lowe's Ventures is the corporate venture capital arm of Lowe's Companies, Inc. It invests in early-stage startups building technologies for home improvement and construction, focusing on e-commerce, supply chain, and in-store tech. It combines funding with access to Lowe's resources, offering executive mentorship and opportunities to pilot products in Lowe's stores. Unlike funds that only provide capital, Lowe's Ventures provides strategic support, real-world pilots, and access to Lowe's customer base to help both the retailer and startups grow.
Company Size
10,001+
Company Stage
IPO
Headquarters
Mooresville, North Carolina
Founded
1946
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Health Insurance
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Lowe's has launched drone delivery at its Matthews, North Carolina store, becoming the first home improvement retailer to offer the service. The pilot programme, conducted in partnership with Wing and DoorDash, delivers select items in as fast as 20 minutes. Customers can order through the DoorDash app, selecting from eligible products including hand tools, paint supplies, and household essentials. Wing drones currently transport orders weighing approximately 2.5 pounds per flight. The service addresses a common problem for DIY and professional customers who forget supplies mid-project. It joins Lowe's existing same-day fulfilment options, including buy online, pick up in store and curbside pickup. The initiative builds on Lowe's broader technology investments, including Mylow, its AI assistant that has answered more than 25 million customer questions since launching in 2025.
Lowe's anticipates a steady second half of the year as elevated interest rates and economic uncertainty prompt homeowners to favour smaller projects over major renovations. Chairman and CEO Marvin Ellison stated the company aims to grow market share despite challenging conditions, citing five consecutive quarters of positive comparable sales growth. Digital sales increased over 15% in the past two quarters, supported by store-based fulfilment and the company's Mylow AI tool. The retailer's core customers, with average household incomes above $100,000, are becoming more cautious about large discretionary purchases. Acquisitions of ADG and FBM are expanding Lowe's construction and interior solutions business, including commercial projects and data centres. The company plans to prioritise debt reduction toward a 2.75-times leverage ratio before potentially resuming share repurchases.
Lowe's Companies shares trade at $198, down 26% over the past year, as the retailer navigates a cautious DIY customer base and weak housing market. Despite revenue shrinking at 1% annually over three years, earnings per share grew at 5.2% through expense discipline and share buybacks. The company generated $3.1bn in free cash flow in fiscal Q2 2026 after $542m in capital expenditures. Online sales grew 15.7%, supported by Mylow, an AI shopping agent whose users convert at triple the rate of other shoppers. Comparable transactions fell 2.1% in the quarter. Management lowered fiscal 2026 sales guidance to approximately $92bn with roughly flat comparable sales and expects Q3 adjusted earnings per share to fall about 7% year-over-year.
Target raised its quarterly dividend to $1.16 from $1.14, whilst Lowe's increased its payout to $1.25 from $1.20. Both retailers reported second-quarter results on 19 August 2026. Target's increase follows a period of flat dividends and comes after a tariff refund boosted quarterly earnings. The company yields 2.8% and paid $518 million in dividends during the quarter. Chief financial officer Jim Lee stated the firm prioritises business investment first, dividends second, and buybacks last. Lowe's generated $3.1 billion in free cash flow against $673 million in dividends. However, the company faces balance sheet challenges, with negative shareholders' equity of $7.44 billion and debt-to-EBITDA of 3.0 times following recent acquisitions. Management aims to reduce leverage to 2.75 times by mid-2027. Lowe's yields 2.4%.
Major US retailers have received over $5 billion in tariff refunds this week alone, with Walmart getting $2.9 billion, Target $994 million, and Home Depot $730 million. The Trump administration is refunding approximately $166 billion in tariff revenue after the Supreme Court struck down its sweeping tariff policy, having returned $100 billion so far. Despite studies showing consumers bore the brunt of initial tariff costs through higher prices, most companies are reinvesting the refunds rather than passing savings to shoppers. Retail executives indicated in earnings calls they plan to put the money back into their businesses. Consumers have filed class-action lawsuits against companies receiving refunds, but none have concluded. Americans have limited recourse to recover funds if companies don't voluntarily lower prices.