Lowe’s on Wednesday reported quarterly results that beat expectations on the top and bottom lines and reaffirmed its full-year outlook.
Revenue jumped about 10% compared with the previous year. Comparable sales increased 0.6% for the quarter, driven by what Lowe’s said was its spring execution and a 15.5% growth in online sales.
“Roughly 60% to 65% of our revenue is from the do-it-yourself customer, and this has been a really difficult do-it-yourself housing market, so for us to do four consecutive quarters of positive comps, we were pleased with that,” CEO Marvin Ellison told CNBC.
Here’s how the company performed in its fiscal first quarter compared with Wall Street estimates, according to a survey of analysts by LSEG:
- Earnings per share: $3.03 adjusted vs. $2.97 expected
- Revenue: $23.08 billion vs. $22.97 billion expected
Shares of the company sank slightly in morning trading.
For the three-month period ended May 1, Lowe’s reported net income of $1.63 billion, or $2.90 per share, down just slightly from $1.64 billion, or $2.92 per share, in the year-ago period. Excluding one-time factors like acquisition costs, the company reported adjusted earnings per share of $3.03.
Lowe’s said strength in appliances, home services and sales to home professionals like contractors also contributed to its performance.
“While DIY demand remains under pressure, we’re continuing to grow market share in a challenging housing environment shaped by elevated interest rates, higher costs and low housing turnover,” Ellison said on a call with analysts on Wednesday. “While we expect a broader market to remain flat in 2026, our focus remains on disciplined execution of our total home strategy, driving continued growth regardless of market conditions.”
Despite soaring gas prices taking a hit to consumer sentiment and discretionary spending, Ellison told CNBC that the Lowe’s core homeowner customer is largely unaffected by high fuel prices. Still, the combination of gas prices with “broader macro concerns” is what’s pushing their sentiment lower, he said.
“The year is playing out about where we forecast and when we gave our guidance, and we’re just trying to work our way through it,” he said.
Ellison said on the analyst call that the company is seeing a K-shaped economy dynamic play out, where higher-income consumers are spending more and lower-income consumers are pulling back on their spending.
“We have a track record of performing well, managing expenses and finding ways to grow sales, irrespective of the macro, and we plan to take share this quarter,” he said.
The company also reaffirmed its full-year guidance, expecting total sales between $92 billion and $94 billion, an increase of between 7% and 9% compared with the prior year. It expects comparable sales to be flat to up 2% compared with last year.
Lowe’s said it expects adjusted earnings per share of between $12.25 and $12.75 for the full year.
The earnings come against a backdrop of housing market struggles and consumer caution as gas prices soar.
“I think overall, this has been the most difficult housing markets that I’ve faced in this business since the financial crisis,” Ellison said on the call.
He told CNBC that he believes interest rates need to come down in order to allow for consumers to have more flexibility with their home improvement projects.
“I think the key lever that we need to see is just rates come down, both 30-year fixed and short-term rates,” he said. “When we see that happen, and I think what we’re talking about is a sustained sub-6% rate environment, we think that will start to loosen up this segment.”
Lowe’s executive vice president of merchandising, Bill Boltz, said on the Wednesday call that the company’s core professional shopper “remains busy” with repair and maintenance projects.
Company executives said on the call that high oil prices have also been putting pressure on the company. While the impact in the first quarter was minimal, they said the current quarter is seeing more challenges.
In February, Lowe’s cut roughly 600 corporate and support roles as the company said it wanted to focus more on its store employees and align its resources.
Earlier this week, Lowe’s rival Home Depot said its core shopper remains resilient as it reaffirmed its full-year guidance and beat Wall Street expectations. The retailer also said it has applied for tariff refunds, which it said could help offset rising fuel costs.
Ellison told CNBC that Lowe’s has not publicly disclosed whether it’s applied for tariff refunds, but it is closely monitoring the situation as there’s “still a lot to learn.”
