Lowe's Companies, Inc. has reported its financial results for the first quarter of fiscal year 2026, ending May 1, with net earnings reaching $1.6 billion. The home improvement retailer announced diluted earnings per share (EPS) of $2.90, a slight decrease from the $2.92 reported in the first quarter of 2025. However, when excluding $96 million in pre-tax expenses related to the acquisitions of Foundation Building Materials (FBM) and Artisan Design Group (ADG), the adjusted diluted EPS saw a 3.8% increase, reaching $3.03 compared to the prior year.
Solid Start to the Year Driven by Pro and Online Sales
Total sales for the quarter amounted to $23.1 billion, an increase from the $20.9 billion recorded in the same period last year. Comparable sales experienced a growth of 0.6%. This positive performance was attributed to strong execution during the spring season, bolstered by a significant 15.5% growth in online sales. The company also noted continued strength in its appliances, home services, and Pro sales segments. Marvin R. Ellison, Lowe's chairman, president, and CEO, highlighted the company's fourth consecutive quarter of positive comparable sales and emphasized the focus on advancing their "Total Home" strategy to enhance customer experience, even within a challenging housing market.
Affirmation of Full-Year Guidance Amidst Market Headwinds
Despite the acknowledged challenges in the broader housing market, Lowe's has affirmed its full-year 2026 outlook. The company projects total sales to be between $92.0 billion and $94.0 billion, representing an approximate 7% to 9% increase compared to the previous year. Comparable sales are expected to be flat to up 2% year-over-year. The company anticipates an operating margin between 11.2% and 11.4%, with an adjusted operating margin projected at 11.6% to 11.8%. Diluted EPS for the full year is forecasted to be between $11.75 and $12.25, with adjusted diluted EPS expected to range from $12.25 to $12.75. The company also detailed its capital allocation strategy, including $674 million in dividends paid during the first quarter, underscoring a commitment to shareholder value.
Strategic Acquisitions and Future Outlook
The recent acquisitions of Foundation Building Materials (FBM) and Artisan Design Group (ADG) are expected to contribute to Lowe's strategic objectives. These moves are part of the company's broader plan to enhance its offerings and market position. As of May 1, 2026, Lowe's operated 1,759 stores, covering 196.0 million square feet of retail space. Investors will be closely monitoring the integration of the acquired businesses and the company's ability to navigate the evolving economic landscape, particularly concerning consumer spending on home improvement projects and the overall health of the housing sector.