Hardware Retailing The Industry's Source for Insights and Information
Among economic headwinds, global conflict and elevated inflation, financial results for the first quarter of 2026 were across the board for top names in the corporate retail world. A majority of companies reported positive results in the quarter, demonstrating resilience in a volatile environment, while many also remain cautious with their guidance for the year. See a financial roundup of the major companies in home improvement retail and where they stand for the rest of 2026.
Ace Hardware
Ace Hardware reported revenues of $2.5 billion, an increase of $242.8 million, or 10.9%. Net income for Q1 was $70.1 million, up $39.8 million from the first quarter of 2025.
U.S. retail same-store sales were up 4.9% during Q1, a result of a 4.2% increase in average ticket and a 0.7% increase in same-store transactions.
The company also reported Q1 financial results for Ace Retail Holdings (ARH), with total retail revenues reported at $185.8 million, an increase of $10.6 million, or 6.1%, as compared to 2025’s first quarter. ARH experienced same-store sales growth of 4.1% during the first quarter of 2026.
Ace added 35 new domestic stores in the first quarter of 2026 and cancelled 19 stores. This brought the company’s total domestic store count to 5,266 at the end of the first quarter of 2026, an increase of 89 stores from the first quarter of 2025.
“Our record first quarter results reflect a simple truth: when we serve our neighbors with excellence and urgency, growth follows,” says Ace CEO John Venhuizen. “Revenue up 10.9%, digital up 30% and hardware format same-store sales up 6.1% with transactions rising 0.7%. Just as importantly, our team delivered a 129% increase in net income through strong growth and disciplined, judicious expense management, proof that being both fierce and frugal is still a winning formula.”
Lowe’s
Lowe’s reported $1.6 billion in net earnings, a 0.79% decrease year over year. Comparable store sales for the quarter increased 0.6%, which the company says was driven by strong spring sales and a 15.5% growth in online sales. Total sales for Q1 2026 were $23.1 billion, a 10.53% increase year over year.
Lowe’s also reported diluted earnings per share of $2.90, a 0.68% decrease from $2.92 one year ago.
“Strong spring execution and continued momentum in Pro, Appliances, Online and Home Services supported a solid start to the year as we delivered our fourth consecutive quarter of positive comp sales,” says Marvin R. Ellison, Lowe’s chairman, president and CEO. “In spite of a challenging housing macro, we remain focused on advancing our Total Home strategy to provide the best experience for our customer. I’d also like to thank our associates for their dedication to serving our customers throughout the busy spring season.”
Lowe’s also reaffirmed its outlook for fiscal 2026:
- Comparable sales expected to be flat to up 2% as compared to the prior year
- Total sales of $92.0 to 94.0 billion or an increase of approximately 7% to 9% compared to the prior year
- Diluted earnings per share of approximately $11.75 to $12.25
The Home Depot
The Home Depot reported its financial results for the first quarter of fiscal 2026, posting net sales for the quarter of $41.8 billion, a 4.8% increase year over year.
Comparable store sales for fiscal Q1 2026 increased 0.6%, and comparable U.S. sales increased 0.4%.
Net earnings for fiscal Q1 were $3.3 billion, a 2.94% decrease year over year. Adjusted diluted earnings per share for fiscal Q1 were $3.43, a 3.65% decrease year over year.
“Our first quarter results were in line with our expectations. The underlying demand in our business was relatively similar to what we saw throughout fiscal 2025, despite greater consumer uncertainty and housing affordability pressure,” says Ted Decker, Home Depot chair, president and CEO. “As always, our associates provided excellent customer service during the quarter, and I would like to thank them for their continued hard work and dedication to serving our customers.”
At the end of the first quarter, the company operated a total of 2,361 retail stores and over 1,280 SRS locations across all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico.
Home Depot also reaffirmed its fiscal 2026 guidance:
- Total sales growth of approximately 2.5% to 4.5%
- Comparable sales growth of approximately flat to 2.0%
- Opening approximately 15 new stores
- Gross margin of approximately 33.1%
- Operating margin of approximately 12.4% to 12.6%
- Diluted earnings-per-share to grow approximately flat to 4.0% from $14.23 in fiscal 2025
- Capital expenditures of approximately 2.5% of total sales
Tractor Supply
Tractor Supply Company recently released its financial results for the first quarter of 2026, reporting a boost in net sales, primarily led by new store openings and comparable store sales.
The company reported net sales of $3.59 billion, a 3.6% increase year over year. Comparable store sales increased 0.5% compared to a decrease of 0.9% in the first quarter of 2025. Diluted earnings per share of $0.31 were reported for the first quarter of 2026. The company also opened 40 new Tractor Supply stores and closed one Petsense by Tractor Supply store in Q1.
Tractor Supply also reaffirmed its fiscal year 2026 outlook, expecting net sales to increase by 4% to 6% and comparable store sales to see 1% to 3% growth over the year. Net income is anticipated to reach $1.11 billion to $1.17 billion.
On an earnings call discussing the results, Hal Lawton, president and chief executive officer of Tractor Supply, emphasized the company’s strong digital growth in the first quarter, mentioning upgrades to subscription offerings, order management and checkout experiences. Soft sales in the companion animal category led to lower than expected comparable store sales for the quarter, while retail price inflation drove a comparable average ticket increase of 1.6%, according to Kurt Barton, Tractor Supply’s chief financial officer.
Target
Target reported first quarter net sales of $25.4 billion, up 6.7% year over year, reflecting a 6.4% increase in merchandise sales and a 24.6% increase in non-merchandise sales. Comparable store sales for the quarter grew 4.7%. Adjusted earnings per share of $1.71 were reported in Q1, down from $2.27 a year ago.
“First quarter financial results were stronger than expected, providing encouraging early signs that our clarified strategy is resonating with our guests and driving broad-based growth across our business,” says Michael Fiddelke, chief executive officer of Target. “While we’re pleased with our Q1 performance, our focus remains on building consistent, long-term growth, and we recognize there is much more work in front of us. As we look ahead, we’re focused on staying disciplined and flexible in an uncertain operating environment and continuing to invest boldly in our team, capabilities and an elevated guest experience to unlock our full potential over time.”
The company also updated its guidance for 2026, including:
- Net sales growth in a range of around 4 percent compared with 2025, two percentage points higher than the prior range. The Company continues to expect to grow net sales in every quarter of the year.
- Full-year 2026 operating income margin rate more than 20 basis points higher than the 4.6 percent Adjusted operating income margin rate in 2025.
- GAAP and Adjusted EPS near the high end of the prior guidance range of $7.50 to $8.50.
Walmart
Walmart reported net sales of $112. in the first quarter of 2026, of $112.2 billion, up 3.2% from Q1 2025. Adjusted earnings per share in Q1 were $0.61, up 1.7% year over year. The company saw comparable sales growth of 4.5% in Q1.
“We delivered a solid first quarter in a dynamic operating environment,” says Doug McMillon, president and CEO of Walmart. “We’re serving customers and members in more ways, which is fueling our growth. We’re well-positioned, maintaining flexibility to navigate the near-term while continuing to invest to create value for the long-term.”
Walmart also provided guidance for the second quarter and fiscal year 2026. The company estimates net sales will increase 3.5% to 4.5% in Q2, including approximately 20 bps tailwind from the acquisition of VIZIO. Forecasts for the full year remain unchanged, with net sales anticipated to jump 3.0% to 4.0% by the end of the year.
