Estimated reading time: 5 minutes
Q2 2025: Retail Titans Face the Fire
A Qunatical Breakdown of the Latest Earnings
The Q2 Showdown: A Tale of Four Titans
On August 20, 2025, retail and shipping giants faced a volatile market head-on. Lowe’s, Target, and Flex LNG dropped their Q2 earnings, while Home Depot’s prior-day report set the stage. Amid tariffs and tight wallets, these companies leaned on Pro customers, digital surges, and financial savvy to outmaneuver the chaos. Here’s the scorecard.
Lowe’s
Crushed it with a $4.33 EPS beat, powered by Pro growth and digital dominance.
Target
Nailed revenue but stumbled on profits, hit by inventory woes and markdowns.
Home Depot
Missed slightly but soared 3.95% on robust comparable sales.
Flex LNG
Sailed past revenue forecasts with a fortress balance sheet.
| Company | EPS | Consensus EPS | EPS Surprise | Revenue | Consensus Revenue | Revenue Surprise | Net Earnings |
|---|---|---|---|---|---|---|---|
| Lowe’s (LOW) | $4.27 (Adj: $4.33) | $4.24 | +1.7% | N/A | $24.02B | N/A | $2.4B |
| Target (TGT) | $2.05 | $2.05 | 0.0% | $25.2B | $24.89B | +1.2% | N/A |
| Home Depot (HD) | $4.68 (Adj) | $4.72 | -0.8% | $45.3B | $45.44B | -0.3% | $4.6B |
| Flex LNG (FLNG) | $0.33 (Adj: $0.46) | $0.46 | 0.0% | $86.0M | $82.44M | +4.3% | $17.7M |
*Note: Some Target forecasts cited $2.09 EPS, suggesting a miss.
How to Play These Stocks
Lowe’s: Buy
Bet on Lowe’s for its $4.33 EPS beat and 1.1% sales growth. Pro segment and digital wins signal upside. Opportunity: Tariff-proof supply chain.
Target: Hold
Steer clear of Target’s turbulence despite a $25.2B revenue beat. Inventory woes and a 19.4% income drop raise red flags. Risk: Margin erosion.
Home Depot: Buy
Buy Home Depot for its 3.95% stock surge and 1.0% sales growth. Pro focus and SRS acquisition fuel recovery. Opportunity: 2.8% sales growth in 2025.
Flex LNG: Watch
Monitor Flex LNG; $86.0M revenue beat and $413M cash are strong, but Q-o-Q declines signal volatility. Risk: LNG market swings.
Lowe’s (LOW): The DIY Dynamo Triumphs
Lowe’s smashed expectations with a $4.33 adjusted EPS, topping the $4.24 consensus. A 1.1% comparable sales jump, fueled by Pro and DIY strength, proves it’s thriving despite economic headwinds. The Artisan Design Group buyout and digital push via MyLowe’s Rewards are game-changers.
Full-Year 2025 Guidance:
- Total Sales: $84.5B–$85.5B
- Comparable Sales: Flat to +1%
- Adjusted EPS: $12.20–$12.45
Year-over-Year:
- Net Earnings: $2.4B (vs. $2.3B)
- Diluted EPS: +2.4%
- Adjusted EPS: +5.6%
Key Financials:
- Diluted EPS: $4.27
- Adjusted EPS: $4.33 (+5.6% YoY)
- Comparable Sales: +1.1%
Strategic Wins:
- MyLowe’s Rewards drives digital growth.
- Artisan Design Group boosts Pro segment.
- Supply chain diversification cuts tariff risks.
Target (TGT): Navigating the Bullseye’s Blip
Target’s $25.2B revenue beat was a win, but a 19.4% operating income drop and margin squeeze tell a tougher story. Inventory mismanagement and markdowns hit hard, though a 25% same-day delivery surge shows digital promise. New CEO Michael Fiddelke faces a steep climb.
Full-Year 2025 Guidance:
- Sales: Low-single-digit decline
- Adjusted EPS: $7.00–$9.00
Year-over-Year:
- Net Sales: -0.9%
- Operating Income: -19.4%
- Gross Margin Rate: -100 basis points
Key Financials:
- Net Sales: $25.2B (-0.9% YoY)
- Comparable Sales: -1.9%
- Adjusted EPS: $2.05 (-20.2% YoY)
Strategic Moves:
- New CEO Michael Fiddelke targets efficiency.
- 25% growth in same-day delivery.
- Tackling inventory challenges.
Home Depot (HD): Climbing Back to the Top
Home Depot missed EPS and revenue slightly but saw its stock rocket 3.95% on August 19. Why? A 1.0% comparable sales gain signaled recovery, driven by Pro customers and smaller projects. The SRS Distribution acquisition keeps it ahead of the curve.
Full-Year 2025 Guidance:
- Total Sales Growth: ~2.8%
- Comparable Sales: ~1.0%
- Diluted EPS: -3%
Year-over-Year:
- Net Sales: +4.9%
- Diluted EPS: -0.4%
- Customer Transactions: -0.9%
Key Financials:
- Net Sales: $45.3B (+4.9% YoY)
- Adjusted EPS: $4.68 (-0.8% miss)
- Comparable Sales: +1.0%
Investor Sentiment:
- Stock surged on operational strength.
- Pro focus and small projects drive growth.
- SRS acquisition bolsters market share.
Flex LNG (FLNG): Sailing the Seas of Profit
Flex LNG cruised through Q2, beating revenue at $86.0M and holding steady on EPS. Its financial fortress—$413M in cash, no debt until 2029—fuels bold moves like a $175M sale and leaseback. Delisting from Oslo to focus on NYSE signals global ambition.
Quarter-over-Quarter:
- Revenue: -2.7%
- Net Income: -5.4%
- Adjusted EPS: -14.8%
- Average TCE Rate: -2.5%
Key Financials:
- Revenue: $86.0M (+4.3% beat)
- Adjusted EPS: $0.46
- Average TCE Rate: $72,012/day
Strategic Moves:
- $175M sale and leaseback deal.
- NYSE-only listing by September 2025.
- Robust balance sheet, no debt until 2029.
