Why This Matters to Distributors: Lowe’s is moving deeper into specialty distribution and contractor supply chains through acquisitions, branch expansion, and digital fulfillment investments, increasing competitive pressure on traditional building products distributors serving professional trades.
Lowe’s reported stronger first-quarter sales on Wednesday as growth in its professional contractor business, online operations and home services division helped offset continued softness in the housing market.
First-quarter sales increased 10.3% year over year to $23.1 billion from $20.9 billion in the same period last year. Comparable sales, which measure performance at stores open at least a year, increased 0.6%.
Net earnings declined slightly to $1.63 billion from $1.64 billion a year earlier.
The company said results were driven by spring seasonal demand, continued growth in sales to professional contractors, a 15.5% increase in online sales and stronger performance in appliances and home services.
CEO Marvin Ellison said Lowe’s continued to gain momentum with professional customers despite a slower housing environment.
“Strong spring execution and continued momentum in Pro, Appliances, Online, and Home Services supported a solid start to the year,” Ellison said in a statement.
The quarter also reflected Lowe’s broader effort to expand beyond traditional home improvement retail into contractor-focused distribution and services.
During the quarter, Lowe’s recorded acquisition-related expenses tied to its purchases of Foundation Building Materials and Artisan Design Group.
The Foundation Building Materials acquisition expands Lowe’s position in specialty construction products, including drywall, ceilings and related materials used in residential and commercial projects. Artisan Design Group adds flooring, cabinets, countertops, and installation services tied to homebuilders and property developers.
The acquisitions strengthen Lowe’s position with professional contractors and move the retailer deeper into markets traditionally served by specialty distributors.
Lowe’s also continued investing in contractor-focused infrastructure, including jobsite delivery, fulfillment operations, branch locations, and digital purchasing tools designed for trade customers.
The company said it operates more than 1,750 home improvement stores, 540 branches and 120 distribution centers across the U.S.
Professional contractors remain a major strategic focus for Lowe’s because they purchase more frequently, buy across multiple product categories and generate larger average order volumes than do-it-yourself consumers.
Online sales also continued to accelerate as Lowe’s expanded ecommerce and fulfillment capabilities aimed at both consumers and contractors.
The company reaffirmed its full-year outlook and said it expects 2026 sales to increase between 7% and 9% compared with last year.
Lowe’s joins a growing number of large home improvement and building products companies expanding into specialty distribution, contractor services and supply chain operations as competition intensifies for professional construction and remodeling customers.
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