On August 20, 2025, Lowe’s Companies Inc. took a bold step to strengthen its position in the home improvement and building products market by announcing the acquisition of Foundation Building Materials (FBM) for approximately $8.8 billion. The deal marks one of the largest acquisitions in Lowe’s history and underscores the company’s strategy of expanding its reach beyond traditional do-it-yourself retail customers into the professional contractor and builder market.
Foundation Building Materials is a major distributor with more than 370 locations across the United States and Canada, serving over 40,000 professional customers. The company supplies essential construction products such as drywall, ceiling systems, metal framing, insulation, and other building materials critical to large-scale residential and commercial projects. By bringing FBM into its portfolio, Lowe’s gains not only a deeper supply chain infrastructure but also direct access to a lucrative professional segment estimated to be worth around $250 billion annually.
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This acquisition comes on the heels of Lowe’s earlier purchase of Artisan Design Group in April 2025 for about $1.33 billion, a move that enhanced the retailer’s design and installation capabilities. The back-to-back acquisitions reflect a clear strategy: Lowe’s is seeking to integrate its offerings from design through distribution, while also ensuring it can meet the demands of large-scale builders and contractors who value efficiency, delivery speed, and reliable inventory. Taken together, these moves position Lowe’s to compete more aggressively against rivals like Home Depot, which has long dominated the professional contractor market.
Financial markets responded positively to the news. Alongside the acquisition, Lowe’s raised its full-year sales outlook to a range of $84.5 to $85.5 billion, up from its prior forecast of $83.5 to $84.5 billion. The decision to upgrade guidance was seen as a clear signal of confidence in the company’s integration plans and its ability to deliver on synergies between its existing business and its new acquisitions. In the second quarter, Lowe’s reported adjusted earnings per share of $4.33, up 5.6 percent from the same period a year ago, with comparable sales growing 1.1 percent. Net earnings reached $2.4 billion, beating Wall Street expectations and marking the first time since late 2024 that Lowe’s outperformed Home Depot in comparable sales growth.
As Lowe’s builds momentum with expansion and acquisitions, Target Corporation is facing a more uncertain future. On the same day Lowe’s unveiled its FBM purchase, Target announced a major leadership change that shook investor confidence. Brian Cornell, who has served as Target’s chief executive since 2014 and is credited with steering the company through a decade of transformation and growth, revealed he would step down as CEO on February 1, 2026. Cornell will transition to the role of executive chair of the board, a position that allows him to remain involved in the company’s strategic direction but relinquishes day-to-day leadership responsibilities.
Michael Fiddelke, Target’s current chief operating officer and a two-decade company veteran, will succeed Cornell as CEO. Fiddelke has held numerous roles across finance, merchandising, human resources, and operations, giving him a comprehensive understanding of the company’s internal workings. While his deep institutional knowledge is seen as a strength, many industry analysts expressed concern that an insider appointment may not be enough to spark the kind of innovation and bold changes Target needs to reverse its current struggles.
The market’s reaction was swift and negative. Target shares fell sharply in pre-market trading following the announcement, declining by as much as 10 percent at one point. Investors appeared to interpret the transition as a sign of uncertainty rather than stability, particularly since Target has been grappling with weak sales, declining customer enthusiasm, and intensifying competition from both traditional rivals and digital retailers. The company’s most recent earnings report offered little reassurance, showing adjusted earnings per share of $2.05, which was in line with expectations, but also highlighting ongoing declines in comparable-store sales.
Beyond financial pressures, Target has faced reputational challenges in recent months. The retailer has drawn criticism for scaling back its diversity, equity, and inclusion initiatives, a decision that prompted backlash from both customers and members of the founding Dayton family. This move has raised questions about the company’s long-term brand identity and customer loyalty at a time when many shoppers are weighing corporate values alongside price and convenience in their purchasing decisions.
Taken together, the developments at Lowe’s and Target illustrate two divergent paths in the U.S. retail landscape. Lowe’s is leaning into aggressive expansion, strategic acquisitions, and a clear focus on professional customers, using its strong financial position to push for market share gains. Target, meanwhile, is navigating a period of transition marked by leadership changes, investor skepticism, and cultural debates that threaten to complicate its turnaround efforts.
For Lowe’s, the question now becomes how seamlessly it can integrate Foundation Building Materials into its broader operations and whether it can maintain its recent edge over Home Depot in key performance metrics. For Target, the challenge rests on whether Michael Fiddelke can translate his experience into a fresh vision that resonates with consumers and reestablishes momentum in a highly competitive retail environment.
Both companies remain pillars of the American retail landscape, but the contrast in their current trajectories could not be clearer. One is surging forward with acquisitions and stronger outlooks, while the other braces for a leadership-driven attempt to restore growth and relevance.
