Lowe's Reports 3.1% Sales Increase but 4.4% Decline in Net Earnings for Fiscal Year 2026

Lowe's Companies, Inc. reported a net sales increase of 3.1% for the fiscal year ending January 30, 2026, reaching $86.3 billion, compared to $83.7 billion in the previous year. However, net earnings decreased by 4.4% to $6.7 billion, resulting in diluted earnings per share of $11.85, down from $12.23 in fiscal 2024. The decline in profitability was attributed to pre-tax expenses of $321 million related to the acquisitions of Artisan Design Group (ADG) and Foundation Building Materials (FBM), which negatively impacted earnings per share by $0.43. Adjusted diluted earnings per share, excluding these costs, rose by 2.4% to $12.28.

In terms of strategic developments, Lowe's completed the acquisitions of ADG and FBM in 2025, which are expected to enhance its offerings to professional customers and accelerate its Total Home strategy. The company aims to leverage these acquisitions to provide comprehensive solutions for both residential and commercial markets. Additionally, Lowe's continued to focus on its Total Home strategy, which emphasizes serving professional customers, expanding online sales, and enhancing installation services.

Operationally, Lowe's operated 1,759 retail stores and over 540 branch locations as of January 30, 2026. The company reported a decrease in customer transactions, which fell by 2.8% to 780 million, while the average ticket size increased by 3.0% to $106.13. The company also noted that comparable sales increased by 0.2%, with growth in five out of fourteen product categories, including Rough Plumbing and Appliances. The gross margin improved slightly to 33.48%, up from 33.32% in the previous year, driven by better inventory management and credit revenue.

Looking ahead, Lowe's expressed confidence in its ability to navigate the current economic environment, which has been characterized by inflationary pressures and changing consumer spending habits. The company plans to continue investing in its productivity initiatives and strategic acquisitions to drive long-term growth. Despite the challenges posed by market volatility, Lowe's remains focused on enhancing its operational efficiency and expanding its market share in the home improvement sector.