Lowe’s Companies, Inc. (NYSE:LOW) reported first-quarter results that came in ahead of analyst expectations, although the company’s shares fell 2.9% after investors reacted negatively to its full-year outlook.
The home improvement retailer posted adjusted diluted earnings per share of $3.03 for the quarter ended May 1, topping Wall Street forecasts of $2.97 per share.
Revenue reached $23.08 billion, exceeding analyst expectations of $22.88 billion and rising 10.4% from $20.93 billion recorded in the same quarter a year earlier.
Comparable sales return to growth
Comparable sales increased 0.6% during the quarter, supported by strong spring demand, continued momentum in appliances and home services, a 15.5% increase in online sales, and solid performance in sales to professional contractors.
“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,” said Marvin Ellison, Lowe’s chairman, president and CEO. “In spite of a challenging housing macro, we remain focused on advancing our Total Home strategy to provide the best experience for our customer.”
Annual guidance disappoints investors
Despite the stronger quarterly performance, Lowe’s full-year fiscal 2026 guidance came in slightly below market expectations.
The company projected adjusted diluted earnings per share in a range of $12.25 to $12.75, with the midpoint of $12.50 falling below analyst consensus estimates of $12.59.
Lowe’s also forecast annual revenue between $92 billion and $94 billion. The midpoint of $93 billion was marginally below Wall Street expectations of $93.07 billion.
Acquisition-related costs weigh on GAAP earnings
On a GAAP basis, diluted earnings per share came in at $2.90, compared with $2.92 in the first quarter of fiscal 2025.
During the quarter, Lowe’s recorded $96 million in pre-tax expenses related to its acquisitions of Foundation Building Materials and Artisan Design Group.