Inventory Turnover › Home Improvement
Home Improvement Inventory Turnover Benchmarks 2026
Big-box home improvement runs roughly 3x to 5x annual turnover. Home Depot leads Lowes by about 1.2 turns in fiscal 2025, driven by Pro-customer mix. Specialty single-category operators (Floor & Decor) sit near 2x due to depth-of-SKU and long project decision cycles.
Quick answer: Lowe's and Home Depot inventory turnover (fiscal 2024 and 2025 10-Ks)
Lowe's (LOW)
3.3x in fiscal 2024 (ended Jan 31, 2025), and 3.3x in fiscal 2025 (ended Jan 30, 2026). $55.80B COGS over ~$17.2B average inventory in fiscal 2024.
Home Depot (HD)
4.8x in fiscal 2024 (ended Feb 2, 2025), easing to 4.5x in fiscal 2025 (ended Feb 1, 2026). $106.21B cost of revenue over ~$22.2B average inventory in fiscal 2024.
Turnover = COGS / average inventory (mean of opening and closing balance-sheet inventory). Figures taken from each company's 10-K filings on SEC EDGAR (Home Depot CIK 0000354950, Lowe's CIK 0000060667), verified June 2026.
Named retailer 10-K data
| Retailer | Fiscal Year | Turnover | COGS | Avg Inventory |
|---|---|---|---|---|
| Home Depot(HD) | FY25 (ended Feb 2026) | 4.5x | $109.8B | $24.6B |
| Lowes(LOW) | FY25 (ended Jan 2026) | 3.3x | $57.4B | $17.4B |
| Floor & Decor(FND) | FY25 (ended Dec 2025) | 2.3x | $2.64B | $1.13B |
| Tractor Supply(TSCO) | FY25 (ended Dec 2025) | 3.3x | $9.87B | $2.96B |
Per-retailer notes
Home Depot (HD)
4.5x turnoverLargest US home improvement retailer. Pro-customer mix drives faster turn than DIY-heavy peers (Pro purchases full pallets, less safety stock). Eased from 4.8x in FY24 as the inventory base grew on full-year SRS Distribution consolidation.
Source: Home Depot 10-K, fiscal 2025
Lowes (LOW)
3.3x turnoverDIY-leaning customer base. Smaller per-transaction size requires deeper SKU range on hand to capture casual project demand.
Source: Lowes 10-K, fiscal 2025
Floor & Decor (FND)
2.3x turnoverSpecialty hard surface flooring. Larger SKU library and longer-cycle decision items (multi-week project timelines) structurally lower turnover.
Source: Floor & Decor 10-K, fiscal 2025
Tractor Supply (TSCO)
3.3x turnoverRural lifestyle and farm supply. Animal feed (consumables) turn 8-12x; hardware and apparel turn 2-3x. Blended eased to 3.3x in FY25 as the inventory base grew faster than COGS.
Source: Tractor Supply 10-K, fiscal 2025
Home Depot vs Lowes: the 1.2 turn gap
Home Depot disclosed in its fiscal 2024 10-K and supplemental presentations that Pro customers represent roughly half of revenue. Lowes runs closer to 25% Pro mix. The Pro effect on inventory is direct:
- Pros buy in case and pallet quantities, accelerating SKU exit velocity.
- Pros visit weekly; the assortment turns predictable demand rather than long-tail browse traffic.
- Pro purchase orders trigger upstream replenishment faster (account-attached buying behaviour).
The 1.2-turn gap means Home Depot cycles its stock far faster than Lowes for the same balance-sheet investment. Each extra turn runs roughly Home Depots full average inventory of COGS through the same capital base again. That throughput advantage, compounded over years, is the structural prize from the Pro strategy.
Frequently asked questions
What was Lowe's inventory turnover in fiscal 2024?
Lowe's inventory turnover was 3.3x in fiscal 2024 (the year ended January 31, 2025), calculated as $55.80B cost of goods sold divided by roughly $17.2B average inventory from its 10-K. It held at 3.3x in fiscal 2025 (ended January 30, 2026), keeping Lowe's in the low-3x band it has run since fiscal 2023.
What is Home Depot's inventory turnover ratio in fiscal 2024?
Home Depot turned its inventory 4.8x in fiscal 2024 (the year ended February 2, 2025), on $106.21B cost of revenue over roughly $22.2B average inventory. It eased to 4.5x in fiscal 2025 (ended February 1, 2026) as the inventory base grew on the full-year SRS Distribution consolidation.
Why does Lowe's turn inventory slower than Home Depot?
The roughly 1.2-turn gap (3.3x vs 4.5x in fiscal 2025) tracks customer mix. Home Depot runs near 50% Pro revenue; Lowe's is closer to 25%. Pro contractors buy in case and pallet quantities and visit weekly, so their SKUs exit faster than the casual-project DIY baskets that weigh more heavily on Lowe's.
What is a good inventory turnover ratio for home improvement retail?
Big-box home improvement retailers run roughly 3x to 5x annual inventory turnover. Specialty single-category operators such as Floor & Decor sit nearer 2x because of deep SKU libraries and long, multi-week project decision cycles. Below about 2x in big-box format usually signals overstock or slow-moving assortment.
Related
Inventory Turnover (parent)
Cross-sector benchmarks and formula.
Home Depot Case Study
Multi-year 10-K turnover history.
Lowes Case Study
Multi-year 10-K turnover history.
Furniture Turnover
Williams-Sonoma, RH, Wayfair.
Auto Parts Turnover
AutoZone, OReilly turnover.
GMROI
Gross margin return on inventory investment.
Weeks of Supply
WOS planning metric.