Lowe’s enhances its inventory optimization initiatives.

Lowe’s has successfully advanced its SKU rationalization strategy, resulting in a 50-basis-point increase in gross margin for Q3, as reported in their recent earnings call. The company aims to reduce its SKUs by 15% by the end of 2025, with positive sell-through results driving these gains. Ending Q3, Lowe's reported a $17.2 billion inventory, reflecting a $400 million decrease from last year, influenced by recent acquisitions and tariffs. The retailer is utilizing AI for demand planning and inventory optimization as part of its broader supplier diversification strategy.