Lowe's runs home improvement stores across the United States, selling tools, lumber, appliances, paint, flooring and garden supplies to do-it-yourself homeowners and professional contractors. Shoppers can buy in its stores, on Lowes.com or through its app, with options for in-store pickup and delivery to homes and jobsites. Beyond products, Lowe's sells installation and home services for projects such as kitchens, flooring, roofing and water heaters, scheduled through its stores and website. It earns money mainly from merchandise sales, plus installation fees and its co-branded credit cards for consumers and businesses. Lowe's was founded in 1946 and is based in Mooresville, North Carolina.
Company Size
10,001+
Company Stage
IPO
Headquarters
Mooresville, North Carolina
Founded
1946
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Lowe's shares have fallen about 18% over the past twelve months, while the S&P 500 gained about 18%. Management said customers were cautious in fiscal Q2 2026, and rivals used tariff refunds to cut prices, mainly on seasonal goods in July. Lowe's chose not to match some of those promotions, which were not in its financial plan. Comparable transactions fell 2.1%, but a 2.3% rise in average ticket kept comparable sales up 0.2%. Operating margin was 11.4% over the past twelve months, down from 12.4%. Management expects the price cutting to ease in the second half. It moved its full-year sales target to the bottom of its range, at about $92 billion, and expects fiscal Q3 adjusted earnings per share about 7% lower.
Lowe's stock has fallen 26% over the twelve months to September 30, 2026, whilst the S&P 500 returned 14%. The home improvement retailer has shifted strategy, targeting larger professional contractors through acquisitions of Foundation Building Materials and Artisan Design Group. Sales reached $26 billion in fiscal Q2 2026, up 8.3% year-over-year. However, comparable sales rose just 0.2%, meaning nearly all growth came from the recent acquisitions rather than existing operations. Management lowered its full-year sales outlook to approximately $92 billion, expecting comparable sales to remain flat. The company cited pressure from weak do-it-yourself demand and difficult building market conditions. Comparable purchases fell 2.1%, driven by weather-sensitive categories. As of September 30, 2026, Lowe's shares traded at 15.5 times trailing earnings, below the S&P 500's 21.7 multiple.
Lowe's has launched drone delivery at its Matthews, North Carolina store, becoming the first home improvement retailer to offer the service. The pilot programme, conducted in partnership with Wing and DoorDash, delivers select items in as fast as 20 minutes. Customers can order through the DoorDash app, selecting from eligible products including hand tools, paint supplies, and household essentials. Wing drones currently transport orders weighing approximately 2.5 pounds per flight. The service addresses a common problem for DIY and professional customers who forget supplies mid-project. It joins Lowe's existing same-day fulfilment options, including buy online, pick up in store and curbside pickup. The initiative builds on Lowe's broader technology investments, including Mylow, its AI assistant that has answered more than 25 million customer questions since launching in 2025.
Lowe's anticipates a steady second half of the year as elevated interest rates and economic uncertainty prompt homeowners to favour smaller projects over major renovations. Chairman and CEO Marvin Ellison stated the company aims to grow market share despite challenging conditions, citing five consecutive quarters of positive comparable sales growth. Digital sales increased over 15% in the past two quarters, supported by store-based fulfilment and the company's Mylow AI tool. The retailer's core customers, with average household incomes above $100,000, are becoming more cautious about large discretionary purchases. Acquisitions of ADG and FBM are expanding Lowe's construction and interior solutions business, including commercial projects and data centres. The company plans to prioritise debt reduction toward a 2.75-times leverage ratio before potentially resuming share repurchases.
Lowe's Companies shares trade at $198, down 26% over the past year, as the retailer navigates a cautious DIY customer base and weak housing market. Despite revenue shrinking at 1% annually over three years, earnings per share grew at 5.2% through expense discipline and share buybacks. The company generated $3.1bn in free cash flow in fiscal Q2 2026 after $542m in capital expenditures. Online sales grew 15.7%, supported by Mylow, an AI shopping agent whose users convert at triple the rate of other shoppers. Comparable transactions fell 2.1% in the quarter. Management lowered fiscal 2026 sales guidance to approximately $92bn with roughly flat comparable sales and expects Q3 adjusted earnings per share to fall about 7% year-over-year.