v3.26.1
Segment Information
 3 Months Ended
May 01, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company’s operations include one reportable operating segment, Retail Home Improvement, and the chief operating decision maker (CODM) is the Chairman, President, and Chief Executive Officer. Our operating segments reflect the way in
which internally reported financial information is regularly reviewed by the CODM who has the ultimate decision-making authority for resource allocation and assessing performance of our segments.

•Retail Home Improvement Reportable Segment - We are engaged in retail operations that sell a wide assortment of home décor, hardlines, and building products both in stores and online throughout the United States. In addition, we have specialists on-site to provide services, including home improvement installation services, and tool and equipment rental.

•Other - As discussed in Note 2, in 2025, Lowe’s acquired FBM, a leading distributor of interior building products, and ADG, a nationwide provider of design, distribution and installation services for interior surface finishes. FBM operations are organized into two lines of business and represent two operating segments, Ceilings and Wall Systems and Commercial Doors and Hardware. ADG is deemed to be a separate operating segment, referred to as Interior Finishes. These three operating segments do not meet the thresholds prescribed under ASC Topic 280 to be deemed a reportable segment, therefore, results from these operating segments are presented in “Other”.

The CODM regularly reviews operating income as the measure of each operating segment’s profit or loss, as well as significant segment expenses of our Retail Home Improvement segment to evaluate operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. Corporate expenses are allocated to the individual operating segments. The CODM also uses these measures in monitoring plan versus actual results. The CODM does not review segment assets at a different asset level or category than those disclosed in the consolidated balance sheets.

The following table presents the Company’s operating income results for its Retail Home Improvement reportable segment, including significant segment expenses:
Three Months Ended
May 1, 2026May 2, 2025
(In millions, except percentage data)Amount% SalesAmount% Sales
Net Sales$21,324 100.00 %$20,930 100.00 %
Less:
Cost of sales14,079 66.02 13,944 66.62 
Expenses:
Employee compensation and benefits2,847 13.35 2,812 13.44 
Occupancy and facility costs492 2.31 469 2.24 
Advertising207 0.97 199 0.95 
Other segment items1
647 3.03 566 2.70 
Selling, general and administrative:4,193 19.66 4,046 19.33 
Depreciation and amortization466 2.19 446 2.13 
Operating income$2,586 12.13 %$2,494 11.92 %
1    Other segment items primarily include financial services costs, technology service costs, insurance costs, impairment costs, and store environment initiative and display costs.
The following table presents a reconciliation of our Retail Home Improvement results to our consolidated totals:

May 1, 2026
Retail Home ImprovementOtherConsolidated
(In millions, except percentage data)Amount% SalesAmount% SalesAmount% Sales
Net sales$21,324 100.00 %$1,754 100.00 %$23,078 100.00 %
Operating income2,586 12.13 (32)(1.82)2,554 11.07 
Interest – net399 1.73 
Pre-tax earnings2,155 9.34 
Income tax provision527 2.29 
Net earnings$1,628 7.05 %
Prior to the fourth quarter of 2025, Retail Home Improvement was our only operating segment and represented our total Company consolidated results. Therefore, a reconciliation to our consolidated totals is not applicable for the quarter ended May 2, 2025.