How Lowe’s Beat Expectations As It Shook Off Weak Housing Market

More From ForbesFeb 27, 2026, 05:58am ESTAI Glasses And Tripling Store Count Offer Warby Parker Clear VisionFeb 26, 2026, 09:54pm ESTTarget Makes Leadership Changes To Boost Growth, Focuses On Style And DesignFeb 26, 2026, 02:22pm ESTJameson Collab With KidSuper Targets A Younger, Style‑Driven AudienceFeb 26, 2026, 09:42am ESTThe Grand Prix Festival Economy Evolves As Disney Builds Season-Long StoryFeb 26, 2026, 09:00am ESTRadar Launches New Competencies For Brick-And-Mortar RetailersFeb 26, 2026, 08:12am ESTHow Nordstrom, Carhartt And Brunt Are Building The Trades PipelineFeb 26, 2026, 07:20am ESTHappy Birthday, Pokémon: 30 Years Of The $147 Billion Collecting EconomyFeb 25, 2026, 11:16am ESTSCOTUS Tariff Ruling Could Trigger Billions In Refunds.

Who Gets The Money In M&A Deals?BusinessRetailHow Lowe’s Beat Expectations As It Shook Off Weak Housing MarketByMark Faithfull,Contributor.Forbes contributors publish independent expert analyses and insights. Mark Faithfull is London-based and covers retail and real estate Follow AuthorFeb 25, 2026, 09:59am ESTDespite a tough market, Lowe's has achieved better than expected growth. (Photo by Justin Sullivan/Getty Images)Getty ImagesDIY giant Lowe’s exceeded Wall Street’s expectations in its fourth quarter, delivering stronger-than-anticipated sales and earnings as the U.S. home improvement retailer continued to gain ground with professional contractors and online shoppers despite a subdued housing market.The Mooresville, North Carolina-based group reported net earnings of $1 billion, or $1.78 per diluted share, for the three months to Jan. 30, compared with $1.13 billion, or $1.99 per share, in the same period a year earlier.The decline in reported profit reflected $149 million in pre-tax expenses tied to its acquisitions of Foundation Building Materials and Artisan Design Group, key strategic moves for the group. PROMOTEDExcluding those one-off costs, adjusted diluted earnings per share rose 2.6% to $1.98, comfortably ahead of analysts’ expectations of $1.94, according to LSEG.Revenue climbed to $20.6 billion from $18.6 billion a year earlier, surpassing forecasts of $20.34 billion and marking growth of more than 10%. Comparable sales, stripping out the effects of store openings and other one-time factors, increased 1.3%, again well above expectations.The strong results come as the home improvement sector recalibrates after a pandemic boom, with retailers betting on operational discipline, professional customers and incremental market share gains to help offset muted demand.MORE FOR YOULowe’s Drives Pro GrowthThe company said the gains were driven by continued momentum in its professional segment, growth in online and home services sales, plus a strong holiday trading period.Lowe’s larger arch rival Home Depot this week also reported quarterly results ahead of expectations but maintained cautious guidance for the year, underscoring the uneven recovery in demand amid high interest rates, a cost-of-living squeeze and a soft housing market.Strategically, in many ways the two groups are converging. Both have invested heavily in the professional segment, which tends to be more resilient than DIY spending. Lowe’s acquisitions of Foundation Building Materials and Artisan Design Group mirror Home Depot’s own efforts to deepen relationships with contractors and trade specialists. 1/1 Skip Ad Continue watchingafter the adVisit Advertiser websiteGO TO PAGE Forbes Daily: Join over 1 million Forbes Daily subscribers and get our best stories, exclusive reporting and essential analysis of the day’s news in your inbox every weekday.

Email Address Sign Up By signing up, you agree to receive this newsletter, other updates about Forbes and its affiliates’ offerings, our Terms of Service (including resolving disputes on an individual basis via arbitration), and you acknowledge our Privacy Statement. Forbes is protected by reCAPTCHA, and the Google Privacy Policy and Terms of Service apply. You’re all set! Enjoy the Daily!

More Newsletters You’re all set! Enjoy the Daily!

More Newsletters Although Home Depot results were also strong, it was more cautious on the market outlook.gettyHowever, Home Depot still enjoys higher sales volumes and historically stronger margins, underpinned by its scale and entrenched Pro customer base. Lowe’s, under chair, president and chief executive Marvin Ellison, has narrowed operational gaps and improved execution.Ellison said the company’s ‘Total Home’ strategy — aimed at serving customers across repair, maintenance and improvement needs — was gaining traction with both do-it-yourself shoppers and professionals.“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,” he said, stressing that the group was focused on productivity initiatives and execution.Lowe’s Fiscal Year RobustFor the full fiscal year, the company generated more than $86 billion in sales and returned $2.6 billion to shareholders through dividends, including $673 million in the fourth quarter alone. Lowe’s now operates 1,759 stores spanning roughly 196 million-sq.-ft. of retail space and employs about 300,000 associates.Yet investors focused on the outlook for fiscal 2026, which the company introduced against ongoing uncertainty in the home improvement market. Lowe’s forecast full-year sales of $92 billion to $94 billion, implying growth of about 7-9% compared with the prior year. Comparable sales are expected to range from flat to up 2%.Shares dipped slightly following the guidance, suggesting that investors remain wary of the pace of recovery in big-ticket home improvement spending. But they remain around 12% ahead over the past 12 months.Lowe’s has sought to insulate itself by deepening its exposure to professional customers, who tend to generate steadier, higher-frequency purchases. Last year the group acquired Foundation Building Materials for about $8.8 billion, adding a distributor of drywall, insulation and other interior building products serving large residential and commercial projects.It also bought Artisan Design Group for roughly $1.33 billion, expanding its capabilities in design services and the installation of flooring, cabinets and countertops for homebuilders and property managers.Beyond acquisitions, Lowe’s has pursued initiatives that include launching a third-party online marketplace to broaden its merchandise assortment, partnering with social media influencers to expand its reach and relaunching a children’s workshop program to engage young families, plus its expanding Mylow agentic platform.Editorial StandardsReprints & PermissionsFind Mark Faithfull on LinkedIn and X. Visit Mark's website. Follow AuthorLOADING VIDEO PLAYER... Video unavailableFORBES’ FEATURED Video This is your last free article. Subscribe today to keep reading. For only $1.50/week, unlock a world of unlimited insights and benefits to help you connect, grow and make an impact.