Lowe’s, led by Black executive Marvin Ellison, opens 2026 with $23 billion in sales as margins narrow

Lowe’s Companies Inc. led by one of the world’s highest-ranking Black CEOs, Marvin Ellison, reported higher sales as profitability margins narrowed during the first quarter of 2026. Additionally, modest gains in home improvement demand and strong online performance helped offset a still-muted housing backdrop.

Total sales for the quarter ended May 1, 2026, rose to $23.1 billion, up from $20.9 billion in the prior-year period. Comparable sales increased 0.6%, supported by solid spring execution, a 15.5% jump in online sales, and continued strength in appliances, home services, and Pro customer spending.

Net earnings for the quarter slipped slightly to $1.63 billion from $1.64 billion a year earlier, while diluted earnings per share (EPS) eased to $2.90 from $2.92. The company said results were impacted by $96 million in pre-tax acquisition-related expenses tied to Foundation Building Materials and Artisan Design Group. Excluding these items, adjusted EPS rose 3.8% to $3.03.

Management points to steady execution despite housing pressure

Despite continued pressure from a challenging housing market and modest overall movement in comparable sales, Lowe’s continued to see strength in key growth engines. The Pro customer segment remained resilient, supported by steady demand from professional contractors, while digital channels delivered another strong quarter, with online sales rising 15.5% year-on-year. Appliances, home services, and Pro-focused categories also contributed to underlying momentum across the business.

Chairman, President, and Chief Executive Officer Marvin R. Ellison pointed to a solid start to the 2026 fiscal year, driven by effective spring execution and ongoing traction in the company’s Total Home strategy. He highlighted continued expansion in customer-facing capabilities, including improved service delivery and deeper engagement across priority categories, as Lowe’s navigates a still-challenging housing environment.

“We remain focused on advancing our Total Home strategy to provide the best experience for our customers,” Ellison said, while acknowledging employees for their role in supporting strong seasonal execution and consistent customer service.

Profitability steady amid higher costs

Gross margin for the quarter stood at 32.68%, compared with 33.38% a year earlier, reflecting shifts in product mix and acquisition-related costs.

Operating income rose modestly to $2.55 billion, while net earnings edged slightly lower due to higher interest expenses and integration-related charges. During the quarter, Lowe’s incurred $96 million in pre-tax expenses linked to recent acquisitions.

Balance sheet reflects acquisition expansion

Lowe’s, a major Fortune 50 company in the home improvement sector, operates over 1,700 stores across the United States and Canada with roughly 300,000 associates. As of May 1, 2026, the company had 1,759 stores encompassing 196 million square feet of retail selling space.

Under Ellison’s leadership, the company’s balance sheet expanded significantly. Total assets in Q1 2026 climbed 21.09% from $45.37 billion to $54.94 billion, following its recent acquisitions. The company generated $3.35 billion in operating cash flow during the quarter and returned capital to shareholders through $674 million in dividend payments and $363 million in stock repurchases.

In addition to his executive role, Marvin Ellison holds a minority stake of 0.145% in Lowe’s Companies Inc., representing 813,822 ordinary shares. This stake is currently valued at over $177.29 million.