Lowe’s Shares Slide 4% As 2026 Outlook Disappoints Despite Q4 Beat

Core Viewpoint - Lowe's issued weaker-than-expected guidance for the current fiscal year, overshadowing stronger fourth-quarter results, leading to a decline in shares by over 4% intra-day [1] Company Performance - For fiscal 2026, Lowe's projected comparable sales growth between flat and up 2%, below the Bloomberg consensus expectation of a 2% increase [3] - Adjusted diluted earnings per share are forecasted to be approximately $12.25 to $12.75, which is below analyst projections of $13 [3] - In the quarter ended in January, adjusted earnings per share were $1.98, an increase from $1.93 a year earlier and ahead of consensus estimates of $1.94 [4] - Comparable sales increased by 1.3%, exceeding expectations of 0.47% growth [4] - Net sales rose by 11% to $20.58 billion, surpassing forecasts of $20.35 billion [4] Industry Context - The U.S. housing market is under persistent pressure due to high home prices and subdued hiring trends, leading to uneven demand conditions [2] - Despite moderating interest and mortgage rates, these dynamics have negatively impacted retailers like Lowe's that depend on home improvement and repair spending [2] - CEO Marvin Ellison noted that the housing environment "remains pressured" and emphasized a focus on controllable factors, including productivity initiatives [2]