Lowe's Defies Housing Headwinds with Strong Q4 Performance
Lowe's Defies Housing Headwinds with Strong Q4 Performance
Lowe's Companies delivered impressive fourth-quarter results that exceeded market expectations, reporting adjusted earnings per share of $1.98 against forecasts of $1.94. Quarterly revenue reached $20.58 billion, surpassing analyst estimates of $20.34 billion and marking a robust 10.9% year-over-year increase. This performance is particularly noteworthy given the sluggish housing market, where turnover and home improvement demand remain subdued across the industry.
Growth Drivers and Operational Challenges
Comparable sales increased 1.3%, fueled by growth in professional, online, and home services segments. Winter storms contributed approximately 50 basis points to comparable sales growth. However, the company faced margin pressures, with adjusted operating margins declining 41 basis points year-over-year to 9.0%, primarily due to acquisition-related impacts and higher employee bonuses.
Looking Ahead to 2026
Lowe's provided constructive guidance for fiscal 2026, projecting total sales between $92.0 and $94.0 billion, representing 7% to 9% growth. The company expects comparable sales to remain flat to up 2%, with adjusted operating margins targeting 11.6% to 11.8% as acquisition integration progresses.
```About the Organizations Mentioned
Lowe's Companies
```html <!DOCTYPE html> <html lang="en"> <head> <meta charset="UTF-8"> <meta name="viewport" content="width=device-width, initial-scale=1.0"> <title>Lowe's Companies: From Hardware Store to Home Improvement Giant</title> <style> body { font-family: Arial, sans-serif; line-height: 1.6; max-width: 800px; margin: 0 auto; padding: 20px; } h1 { color: #333; } h2 { color: #555; } p { margin-bottom: 1em; } </style> </head> <body> <h1>Lowe's Companies: From Hardware Store to Home Improvement Giant</h1> <p><strong>Lowe's Companies, Inc.</strong> is the second-largest home improvement retailer in the United States, operating over 1,700 stores nationwide and employing around 300,000 associates from its headquarters in Mooresville, North Carolina[4][5]. Specializing in tools, hardware, paint, plumbing, appliances, building materials, and garden supplies, Lowe's serves both professional contractors and DIY enthusiasts through its expansive big-box warehouse format[1][4].</p> <h2>A Storied History Spanning a Century</h2> <p>Founded in 1921 by Lucius Smith Lowe as North Wilkesboro Hardware in North Wilkesboro, North Carolina, the company began as a modest general store selling farming supplies and hardware[1][2][5]. After Lucius's death in 1940, his son Jim Lowe and son-in-law H. Carl Buchan took over, pivoting to hardware and building materials to capitalize on the post-World War II construction boom[1][2][3]. By 1949, Lowe's became a chain with its second store, reachin
