The Lowe’s Cos. posted adjusted earnings that beat a Wall Street estimate but came up short on revenues as the company faced continued pressure in its do-it-yourself business from consumers who are spending cautiously on their homes.
Net earnings were $2.4 billion, or $4.27 per diluted share, versus $2.4 billion, or $4.27 per diluted share, in the quarter a year earlier.
In the second quarter, Lowe’s recognized $96 million in pre-tax expenses associated with the acquisitions of Foundation Building Materials and Artisan Design Group. With related expenses excluded, adjusted diluted earnings per share increased 1.6% to $4.40, up from the year-prior adjusted diluted EPS. Diluted EPS and adjusted diluted EPS include an 11-cent benefit from IEEPA tariff refunds.
An analyst consensus estimate published by Zacks Investment Research called for earnings per adjusted diluted share of $4.22 and revenues of $26.13 billion.
Comparable sales for the quarter gained 0.2% year over year, the company reported. The slight increase was driven by solid performance in Pro and home services sales, as well as a 15.7% advance in online revenues, partially offset by persistent macro pressures in the do-it-yourself business, Lowe’s reported.
Total sales for the quarter were $25.96 billion versus $23.96 billion in the prior-year quarter. Operating income was $3.55 billion, up from $3.47 billion in the year-earlier period, the company noted.
Updated company guidance for fiscal 2026 now has total sales at $92 billion, up from the previous $92 to $94 billion; comparable sales flat year over year, up from the previous flat to up 2%; and adjusted diluted earnings per share of $12.25, up from the previous $12.25 to $12.75.
As part of the company’s conference call, Bill Boltz, Lowe’s executive vice president, merchandising, said, “We delivered strong performance across our interior categories, including positive comps in appliances, paint and kitchen and bath. Starting with appliances, where we delivered our seventh consecutive quarter of positive comp sales growth as we continue to reinforce our leadership position as the destination for both planned purchases and urgent replacement needs through a best-in-class omni-channel experience, fast, reliable fulfillment and the broadest assortment of leading brands, including LG, GE, Bosc, and Whirlpool.”
Marvin Ellison, Lowe’s chairman, president and CEO, said: “Sustained growth in Pro, online and Home Services led to our fifth consecutive quarter of positive comp sales, despite pressure in discretionary DIY spending. While the near-term remains dynamic, our teams are executing at a high level, advancing our Total Home strategy and investing to drive growth and profitability.”
