LOW: While Q1 a Victim of Higher Expectations; Q2 Expected Better with FY26 Intact

研报英文原文证据摘录

LOW: While Q1 a Victim of Higher Expectations; Q2 Expected Better with FY26 Intact

-69bps y/y; we est ADG/FBM mix of -100bps partially 2026E 3.03 A 4.26 E 3.21 E 1.95 E 12.45 E

offset by favorable credit revenue; 2) LOW Q2 assumes +1% comps (or +40bps/+300bps Prior 2.95 E 4.40 E 3.22 E 1.93 E 12.50 E

q/q on a 1/2-yr basis via Total Home initiatives, tax refund benefit, etc.) & Adj EPS -2% y/ 2027E 3.25 E 4.57 E 3.52 E 2.19 E 13.55 E

y (vs. +3% St); Q2 Adj EBIT% pressures expected via ADG/FBM, reinvestment & transport Prior 3.22 E 4.75 E 3.51 E 2.15 E 13.65 E

cost pressure; 3) Fuel/commodity pressures were manageable in Q1 & LOW is working to

mitigate higher costs in Q2 (via PPI offsets, contract adjustments, etc). EPSSource:2023Company:Annual:Data,EPS Wellsdo notFargosum dueSecuritiesto rounding.estimates, and Factset.

NA = Not Available, NC = No Change, NE = No Estimate

Add'l takes. 1) Mylow AI assistant is now answering 1M+ consumer inquiries/month; Zachary Fadem, CPA

driving ~3x higher sales conversion vs. non-users; 2) Appliances were positive despite Equity Analyst | Wells Fargo Securities, LLC

squishy checks; 70% of category still duress-driven; 3) LOW now offers free same-day Zachary.Fadem@wellsfargo.com | 212-214-8018

delivery on $25 orders for members; 4) LOW continues Pro enhancements, including AI David Lantz

powered Material List quoting tool; broader assortment, in-stocks/restock times; 5) 2H Equity Analyst | Wells Fargo Securities, LLC

innovation coming across categories; Pet/workwear full fleet rollout by YE. David.Lantz@wellsfargo.com | 212-214-5044

Anthony Trainor

Other takes. 1) 9 of 13 categories comped positive in Q1 (including Appliances, Lawn EquityAnthony.Trainor@wellsfargo.comAnalyst | Wells Fargo Securities,| 212-214-1953LLC