WS Investor
20 May 2026, 14:19
Lowe's Slips 2.6% as Tepid Comp Sales and Acquisition Costs Disappoint Alongside TJX's Blowout
Lowe's fell 2.6% today in a session where the contrast with TJX's standout performance next door in the retail space could hardly have been sharper. The home improvement giant delivered a solid but uninspiring first quarter that affirmed rather than raised its full-year outlook, leaving investors wanting more.
Total sales for the quarter ended May 1, 2026 came in at $23.1 billion, up from $20.9 billion a year ago, with the increase largely reflecting the acquisitions of Foundation Building Materials and Artisan Design Group rather than organic momentum. Comparable sales grew just 0.6%, the fourth consecutive positive comp quarter but a figure that signals a business still navigating a difficult housing market rather than accelerating through it. Online sales were a genuine bright spot, growing 15.5%, alongside continued strength in appliances, home services and Pro sales.
GAAP diluted EPS came in at $2.90, essentially flat with $2.92 a year ago, weighed down by $96 million in pre-tax acquisition-related expenses. Adjusted diluted EPS grew a more respectable 3.8% to $3.03. Net earnings were $1.6 billion. The company paid $674 million in dividends during the quarter but did not repurchase shares, directing capital instead toward integration of its recent acquisitions.
The full-year 2026 outlook was affirmed rather than raised, with total sales of $92 billion to $94 billion, comparable sales of flat to up 2%, and adjusted diluted EPS of $12.25 to $12.75. The absence of an upgrade, coming on a day when TJX raised guidance across every metric, likely amplified the negative market reaction.
CEO Marvin Ellison acknowledged the challenging housing macro while pointing to spring execution and Pro momentum as reasons for confidence. The 2.6% decline reflects a market that found the results adequate but not compelling — particularly on a day when the bar for retail outperformance was set conspicuously high by a direct peer.
Lowe's fell 2.6% today in a session where the contrast with TJX's standout performance next door in the retail space could hardly have been sharper. The home improvement giant delivered a solid but uninspiring first quarter that affirmed rather than raised its full-year outlook, leaving investors wanting more.
Total sales for the quarter ended May 1, 2026 came in at $23.1 billion, up from $20.9 billion a year ago, with the increase largely reflecting the acquisitions of Foundation Building Materials and Artisan Design Group rather than organic momentum. Comparable sales grew just 0.6%, the fourth consecutive positive comp quarter but a figure that signals a business still navigating a difficult housing market rather than accelerating through it. Online sales were a genuine bright spot, growing 15.5%, alongside continued strength in appliances, home services and Pro sales.
GAAP diluted EPS came in at $2.90, essentially flat with $2.92 a year ago, weighed down by $96 million in pre-tax acquisition-related expenses. Adjusted diluted EPS grew a more respectable 3.8% to $3.03. Net earnings were $1.6 billion. The company paid $674 million in dividends during the quarter but did not repurchase shares, directing capital instead toward integration of its recent acquisitions.
The full-year 2026 outlook was affirmed rather than raised, with total sales of $92 billion to $94 billion, comparable sales of flat to up 2%, and adjusted diluted EPS of $12.25 to $12.75. The absence of an upgrade, coming on a day when TJX raised guidance across every metric, likely amplified the negative market reaction.
CEO Marvin Ellison acknowledged the challenging housing macro while pointing to spring execution and Pro momentum as reasons for confidence. The 2.6% decline reflects a market that found the results adequate but not compelling — particularly on a day when the bar for retail outperformance was set conspicuously high by a direct peer.
