New: Introducing “Why Is It Moving?” - lightning-fast, AI-driven explanations of stock moves

Learn More

Lowe's Digital Evolution Enhances Pro & DIY Experiences With AI

By Zacks Equity Research | October 20, 2025, 11:00 AM

Lowe’s Companies, Inc. LOW is transforming home improvement retail with its “Total Home” strategy, embedding artificial intelligence (AI) across operations to enhance customer engagement and associate productivity. 

In the second quarter of fiscal 2025, Lowe’s reported $24 billion in sales, up 1.1% year over year, fueled by strong performance in its Pro and DIY segments. Online sales grew 7.5%, thanks to an improved digital experience and the popular Lowe’s Rewards program, which encourages loyalty and repeat purchases.

A standout innovation is Mylow Companion, an AI-powered tool for store associates. The app helps employees provide fast, accurate product recommendations, from estimating mulch needs to suggesting energy-efficient appliances, enabling more personalized service and boosting customer satisfaction. Associates have embraced the tool, which also expands cross-department knowledge and improves productivity.

For customers, Lowe’s offers Mylow, a virtual advisor integrated into its app and website. Mylow guides shoppers through every step of home improvement projects, making it easier for DIY enthusiasts while helping professionals quickly choose the right tools and materials.

AI also strengthens Lowe’s Pro strategy, particularly through the acquisition of Foundation Building Materials (“FBM”). FBM’s AI Blueprint Takeoff technology, now integrated into Lowe’s Pro Desk, automates the extraction of quantities and measurements from digital blueprints, improving accuracy and speeding up large-scale project planning.

With FBM’s 370-branch network and the MyFBM mobile app, offering real-time pricing, order tracking and delivery management, Lowe’s has expanded its reach in key regions like California and the Northeast. By embedding AI throughout its operations and digital ecosystem, Lowe’s is driving sustained growth in its Pro and online businesses, enhancing associate productivity, and strengthening its position in the $250 billion Pro market.

How HD, FND & WSM Are Staying Competitive With LOW

The Home Depot, Inc. HD is harnessing AI to elevate the customer experience through enhanced search functionality and optimized delivery operations across its digital platforms.

Machine learning powers Home Depot’s “ship from best location” system, which identifies the fastest and most efficient delivery routes. The company now offers its widest-ever same-day and next-day delivery coverage, driving more frequent purchases both online and in stores.

Home Depot has also expanded its “buy it again” feature and upgraded its AI-enhanced search capabilities, making it easier for customers to reorder across channels. In-store technology improvements, such as the Order Fulfillment Associate app, now enable batch picking for multiple orders, increasing both accuracy and fulfillment speed.

Floor & Decor Holdings, Inc. FND is focusing its technology efforts on foundational business systems and core digital commerce capabilities.

The company is implementing a new ERP system for finance and merchandising, spending $2.2 million this quarter and planning $9 million for the year, highlighting Floor & Decor Holdings’ commitment to streamlining processes and improving operational efficiency.

For fiscal 2025, Floor & Decor Holdings plans to invest $35-$40 million in IT infrastructure, e-commerce and store support center initiatives, reinforcing its focus on strengthening omnichannel retail operations.

Williams-Sonoma, Inc. WSM is deploying AI across three strategic areas: customer experience, supply-chain optimization and internal operations automation.

Williams-Sonoma has introduced an AI-powered customer service assistant across all brands, improving resolution rates and lowering costs, while developing next-generation digital design tools and a culinary companion for cookware discovery.

Leveraging its vertically integrated model, WSM applies AI end-to-end for forecasting, inventory optimization and delivery accuracy. Williams-Sonoma’s proprietary AI platform automates workflows across finance, HR and technology, driving measurable gains in productivity, software development speed and creative output, ultimately boosting conversion rates and generating cost savings.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report


 
Lowe's Companies, Inc. (LOW): Free Stock Analysis Report
 
The Home Depot, Inc. (HD): Free Stock Analysis Report
 
Williams-Sonoma, Inc. (WSM): Free Stock Analysis Report
 
Floor & Decor Holdings, Inc. (FND): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Latest News