LOW · CIK 60667
What Lowe's Companies, Inc. told the SEC could break it.
The risk Lowe's emphasizes most is trade policy bearing on its merchandise. It sources a large share of its private-branded and national-brand products from foreign manufacturers, with China and Mexico the dominant import sources, so tariffs and trade-policy changes (including to the USMCA) raise its merchandise costs and could dampen consumer demand. The remaining disclosures are narrower operational and regulatory matters: it maintains support offices in India and China whose disruption could affect operations, it agreed in November 2025 to a civil penalty resolving alleged deviations from an EPA lead-safe-work-practices consent decree, and it depends on third-party processors for card, electronic and promotional-financing payments whose interchange and other fees may rise.
4 self-disclosed vulnerabilities, pulled from its own filings — each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Regulatory & policy
- tariffs on imports from China and Mexico (dominant import sources) raising merchandise costmedium
Lowe's sources a large percentage of its private-branded and national-brand merchandise from foreign manufacturers, with China and Mexico the dominant import sources; tariffs and trade-policy changes (incl. USMCA changes) increase merchandise cost and could dampen consumer demand.
“We source, both directly and indirectly, a portion of the products we sell from foreign manufacturers, with China and Mexico being the dominant import sources. Tax and trade policies, tariffs, and other regulations affecting trade between the United States and other countries, such as China and Mexico, increase the cost of our merchandise sourced from outside of the United States, which represents a large percentage of our private branded and national brand merchandise.”
Geographic concentration
- offshore support offices in India and Chinalow
In addition to U.S. operations, Lowe's maintains support offices in India and China; an extended disruption of operations in these locations, whether due to labor difficulties or otherwise, could adversely affect its business.
“In addition to our United States operations, we have support offices in India and China, and any extended disruption of our operations in our different locations, whether due to labor difficulties or otherwise, could adversely affect our business and results of operations.”
SEC filing →As of 2026
Litigation
- EPA Lead Renovation, Repair & Painting consent-decree deviations — civil penalty settlementlow
EPA Region 5, EPA and DOJ identified possible deviations from a 2014 civil consent decree governing lead-safe work practices in pre-1978 homes; on November 25, 2025, Lowe's agreed (without admitting liability) to resolve the matter via a civil penalty.
“On November 25, 2025, the Company, without admitting liability, agreed to resolve the matter by payment of a civil penalty of $12,50”
SEC filing →As of 2026
Sole-source dependency
- reliance on third-party payment processors and interchange-fee costlow
Lowe's relies on third parties to process credit/debit cards, electronic checks, gift cards, promotional financing and other electronic payments and pays interchange and other fees that may rise over time; disruption if these providers become unwilling/unable to provide services would harm its business.
“we rely on third parties to provide payment processing services, including the processing of credit cards, debit cards, electronic checks, gift cards, promotional financing, and other forms of electronic payment, and it could disrupt our business if these companies become unwilling or unable to provide”
SEC filing →As of 2026
The hidden graph
Who it depends on, and who depends on it.
Relationships surfaced from filings — including ones disclosed by the other side, which is how the non-obvious ones come to light.
Its suppliers
Spectrum Brands Holdings, Inc.
“with a significant concentration of sales to a limited group of retailer customers each exceeding 10% of segment sales, consisting of The Home Depot, Lowe's and Walmart, representing approximately 64% segment sales for the year ended September 30, 2025.”
Cited →The Scotts Miracle-Gro Company
“The Company's two largest customers accounted for the following percentages of net sales for the fiscal years ended September 30: Percentage of Net Sales 2025 2024 2023 The Home Depot 34 % 30 % 29 % Lowe's 18 % 18 % 18 %”
Cited →Fortune Brands Innovations, Inc.
“Net sales to Lowe's were 11 %, 11 % and 11 % of net sales in 2025, 2024 and 2023, respectively.”
Cited →“including our two largest customers: 1) Lowe's and 2) Home Depot, inclusive of sales through their respective internet website portals.”
Cited →“Sales to Lowe's, a North American retailer, represented approximately 15 %, 13 %, and 13 % of our consolidated net sales in 2025, 2024 and 2023, respectively. Lowe's represented approximately 44 % and 38 % of our consolidated accounts receivable as of December 31, 2025 and 2024, respectively.”
Cited →“The Retail segment services two of our largest customers, The Home Depot and Lowes, which accounted for approximately 17% and 11%, respectively, of our total net sales in fiscal 2025, 17% and 11%, respectively, in 2024, and 17% and 12%, respectively, in 2023.”
Cited →“Lowe's was the second largest customer at approximately $324.4 million or 20.9% of our total revenues.”
Cited →“In fiscal 2025 and 2024, sales to The Home Depot accounted for approximately 37% and 38%, Walmart represented approximately 29% and 27%, and Lowe's represented approximately 14% and 15% of our Garden segment's net sales, respectively.”
Cited →“our key customers in the Consumer reportable segment include Ace Hardware, Amazon, Do It Best, Hardlines Distribution, The Home Depot, Inc., Lowe's, Menards, Orgill, W.W. Grainger, and Wal-Mart. Within our Consumer segment, sales to these customers accounted for approximately 65%, 67% and 67% of net sales for the fiscal years ended May 31, 2025, 2024 and 2023, respectively.”
Cited →“ct construction products are sold through The Home Depot and Lowe's.”
Cited →“Although other retailers, dealers, distributors, wholesalers and homebuilders represent other channels of distribution for our products and services, we might not be able to quickly replace, or replace at all, the loss of a substantial portion of our sales to The Home Depot or the loss of all of our sales to either Ferguson or Lowe's. Any such loss would have a material adverse impact on our business, results of operations and financial position.”
Cited →Armstrong World Industries, Inc.
“Gross sales to Lowe's Companies, Inc. (including sales to Foundation Building Materials, Inc.) and The Home Depot, Inc. (including sales to GMS, Inc.) totaled $937.8 million and each individually exceeded 10% of our consolidated gross sales in 2025.”
Cited →
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