Lowe’s Q4 net earnings fall despite higher sales

Core Viewpoint - Lowe's reported a decline in net earnings and diluted EPS for the fourth quarter, despite year-on-year sales growth and comparable sales increases [1][2]. Financial Performance - Net earnings for the fourth quarter decreased to $999 million from $1.12 billion, with diluted EPS falling to $1.78 from $1.99 year-on-year [1][2]. - Quarterly sales rose to $20.58 billion from $18.55 billion, with comparable sales increasing by 1.3% [2]. - Cost of sales totaled $13.90 billion, resulting in a gross margin of $6.68 billion, compared to $12.45 billion and $6.09 billion in the prior-year quarter [3]. - Operating income fell to $1.71 billion from $1.83 billion [3]. Annual Performance - For the fiscal year ended January 30, 2026, net sales reached $86.29 billion, up from $83.67 billion the previous year [3]. - Operating income decreased to $10.15 billion from $10.47 billion, and net earnings slipped to $6.65 billion from $6.96 billion [4]. Shareholder Returns - The company distributed $673 million in dividends during the fourth quarter and returned $2.60 billion to shareholders for the full year [4]. Strategic Outlook - Lowe's expects total sales for fiscal 2026 to be between $92 billion and $94 billion, with comparable sales projected to range from flat to up 2% [5]. - The company forecasts an operating margin of 11.2%-11.4%, net interest expense of around $1.6 billion, and diluted EPS of $11.75-$12.25 [6].