Lowe’s Cos. Inc. reported higher sales in the fourth quarter as growth from professional contractors, online shopping and home services offset continued weakness in big-ticket do-it-yourself projects, but profits fell and executives warned that housing conditions remain uneven heading into 2026.
For the quarter ending Jan. 30, Lowe’s earned $1.0 billion, or $1.78 per share, down from $1.13 billion a year earlier. Results included $149 million in costs tied to the company’s acquisitions of Foundation Building Materials and Artisan Design Group.
Quarterly sales climbed to $20.6 billion, up from $18.6 billion a year earlier. Comparable sales increased 1.3%, driven by gains in professional customers, online orders, and home services, along with a strong holiday season.
“We delivered strong results this quarter, as our Total Home strategy is resonating with both our Pro and DIY customers,” CEO Marvin Ellison said. Following the quarter, Lowe’s awarded $125 million in discretionary bonuses to frontline store and supply-chain workers.
Ellison said homeowners remain cautious about major remodeling projects because of high interest rates and uncertainty in the housing market, but Lowe’s is focusing on areas it can control, including productivity, service levels, and support for professional contractors.
For the full fiscal year, Lowe’s reported sales of $86.3 billion, up 3.1% from $83.7 billion the year before. Net earnings fell 4.4% to $6.65 billion, compared with $6.96 billion in fiscal 2024.
Comparable sales for the year edged up 0.2%, as growth from Pros, digital channels and services helped offset weaker demand for large discretionary projects. Lowe’s said online sales grew at a high single-digit pace for the year.
As of Jan. 30, Lowe’s operated 1,759 stores, totaling about 196 million square feet of selling space.
Executives repeatedly pointed to professional contractors as a key source of growth. Lowe’s said Pro sales increased again in the fourth quarter, supported by stronger job-site delivery, improved in-stock levels and expanded assortments aimed at planned projects.
The company continues to build out its Pro Extended Aisle, which connects store associates and customers directly to supplier catalogs for items not stocked in stores. Executives said the program is expanding week by week and is helping Lowe’s capture more planned spending from small and midsize Pros, though the company does not break out Pro revenue separately.
Lowe’s also highlighted the growing role of artificial intelligence across the business, from helping customers shop online to supporting store associates and Pro sales teams.
Ellison said AI-powered tools are now used to answer customer questions, help associates learn product details and guide sales conversations with Pros. He said those tools are being used regularly and are improving service and efficiency in stores and online, rather than being limited to pilot programs.
Looking ahead, Lowe’s issued a cautious outlook for fiscal 2026, citing continued pressure from mortgage rates, housing turnover, and consumer hesitation. The company expects sales of $92 billion to $94 billion, with comparable sales ranging from flat to up 2%.
Ellison said Lowe’s expects to gain market share even if the broader home-improvement market remains slow.
“We remain confident that we are well positioned to take share regardless of the macro environment,” he said.
Do not miss any content from Distribution Strategy Group. Join our list.
