Lowe's Companies posted a marginal fall in first-quarter net profit for fiscal 2026, even as revenue climbed sharply against the prior year.
The US home improvement retailer earned $1.62bn in the three months to 1 May 2026, edging below the $1.64bn recorded in the corresponding period a year earlier.
Total revenues or net sales, however, rose to $23.07bn from $20.93bn.
Operating income rose to $2.55bn from $2.49bn, though the operating margin narrowed to 11.07% from 11.92%.
Diluted earnings per share (EPS) slipped slightly to $2.90 from $2.92.
Results were weighed down in part by $96m in pre-tax charges related to the acquisitions of Foundation Building Materials and Artisan Design Group.
Excluding these costs, adjusted diluted EPS grew 3.8% to $3.03.
On a like-for-like basis, comparable sales rose 0.6% year-on-year, supported by a strong spring trading season, a 15.5% jump in online sales, and continued growth across appliances, home services and professional sales.
Gross margin as a share of revenues contracted to 32.68% from 33.38%, as the cost of sales rose to $15.5bn, equivalent to 67.3% of revenues compared with 66.6% previously.
The company closed the quarter operating 1,759 stores, covering 196 million square feet of retail selling space.
Lowe's chairman, president and CEO Marvin R Ellison said: “Strong spring execution and continued momentum in Pro, Appliances, Online, and Home Services supported a solid start to the year as we delivered our fourth consecutive quarter of positive comp sales.”
Looking ahead, Lowe's kept its full-year fiscal 2026 guidance unchanged, projecting total revenues of between $92bn and $94bn. This implies an annual growth of approximately 7% to 9%.
Comparable sales are expected to range from flat to up 2%.
The company forecast diluted EPS of $11.75–$12.25, adjusted diluted EPS of $12.25–$12.75, and capital expenditure of up to $2.5bn.
Ellison added: “In spite of a challenging housing macro, we remain focused on advancing our Total Home strategy to provide the best experience for our customers. I'd also like to thank our associates for their dedication to serving our customers throughout the busy spring season.”
