Lowe's Companies experienced a 1% price move last week, coinciding with its partnership announcement with Mesa, which aims to enhance home improvement experiences through the Mesa Homeowners Card and MyLowe’s Rewards program. This initiative could potentially strengthen customer loyalty and increase in-store and online traffic, offering cardholders up to $120 annually in credits for purchases at Lowe's. Despite the broader market's downturn due to newly announced tariffs, which affected several sectors and major stocks, Lowe's modest price move suggests resilience, possibly due to the new partnership's perceived value and appeal to homeowners amidst economic uncertainty.

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The last five years have seen Lowe's Companies deliver a total return of approximately 173%. This performance stands out, especially when considering its underperformance against the US Specialty Retail industry over the past year. Several factors have influenced this longer-term success, including Lowe's strategic focus on the Pro market, significantly boosting engagement and sales. Investment in technology and a robust omnichannel strategy further enhanced revenue and digital efficiencies. Additionally, the introduction of private brands like STAINMASTER positively impacted net margins.

Furthermore, Lowe's partnerships, such as with Sunrun Inc. for solar solutions, illustrate its commitment to expanding service offerings. The phased buyback program, completed by January 2025, also played a role in enhancing shareholder value. Despite recent challenges, Lowe's consistent innovation and focus on customer experience have fortified its market position, contributing to substantial returns over this period.

Learn about Lowe's Companies' future growth trajectory here.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NYSE:LOW.

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