Lowe’s reported lower fourth-quarter net earnings and diluted earnings per share (EPS), despite year-on-year (YoY) gains in sales and comparable growth.
Net earnings declined to $999m from $1.12bn for the quarter ended 30 January 2026.
The US home improvement retailer posted diluted EPS of $1.78, down from $1.99 in the same quarter the year before.
Quarterly sales rose to $20.58bn from $18.55bn while comparable sales increased 1.3%, supported by growth in Pro, online and home services categories and strong holiday trading.
During the quarter, Lowe’s recorded $149m in pre-tax charges linked to the acquisitions of Foundation Building Materials and Artisan Design Group.
Excluding these costs, adjusted diluted EPS increased 2.6% YoY to $1.98.
Cost of sales totalled $13.90bn, resulting in gross margin of $6.68bn, compared with $12.45bn and $6.09bn, respectively, in the prior-year quarter.
Operating income fell to $1.71bn from $1.83bn.
For the fiscal year ended 30 January 2026, net sales reached $86.29bn, up from $83.67bn a year earlier.
Cost of sales rose to $57.40bn, producing a gross margin of $28.89bn, versus $55.80bn and $27.88bn in fiscal 2025.
Operating income decreased to $10.15bn from $10.47bn while net earnings slipped to $6.65bn from $6.96bn.
The company distributed $673m in dividends in the fourth quarter and returned $2.60bn to shareholders for the full year.
As of 30 January 2026, Lowe’s operated 1,759 stores covering about 196 million square feet of retail selling space.
Lowe's chairman, president and CEO Marvin R Ellison said: “We delivered strong results this quarter, as our Total Home strategy is resonating with both our Pro and DIY customers, which was evident during a great holiday season.
“Given our outperformance this quarter, we awarded $125m in discretionary bonuses to our frontline associates in recognition of their hard work and outstanding customer service.”
For fiscal 2026, Lowe’s expects total sales of $92bn-$94bn and comparable sales ranging from flat to up 2%.
It forecasts an operating margin of 11.2%-11.4% (11.6%-11.8% adjusted), net interest expense of around $1.6bn, an effective tax rate of 24.5%, diluted EPS of $11.75-$12.25 (adjusted $12.25-$12.75) and capital expenditure of roughly $2.5bn.
