Target, Lowe’s Beat Q1 Estimates; ETFs Hold Both

On Wednesday, Target and Lowe’s reported first-quarter 2026 results that beat analysts’ estimates. Target reported that first-quarter net sales rose 6.7% year over year, and traffic in stores and online increased 4.4% versus Q1 2025. The company raised its full-year net sales growth forecast to 4% from a prior 2%.

Michael Fiddelke, Target’s chief executive, commented, “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.”

Lowe’s reported total revenue was roughly 10% higher than in Q1 2025, with online sales up 15.5% year over year. The company cited strength in spring seasonal demand, professional customers, appliances and home services as contributors to the revenue gain.

Marvin R. Ellison, Lowe’s chairman, president and chief executive, noted, “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.”

Both retailers are components of exchange-traded funds such as the VanEck Retail ETF (RTH) and the State Street SPDR S&P Dividend ETF (SDY). RTH’s net asset value rose 7.69% over the one-month period ending April 30, 2026. SDY’s year-to-date NAV was up 8.50% as of April 30, 2026, and the fund reported a 30-day SEC yield of 2.48% as of May 19, 2026.

Both companies will file detailed earnings reports and host investor calls where analysts are expected to review margins, inventory levels and promotional activity. Investors can monitor ETF holdings and performance to assess how individual company results affect fund returns.