Lowe's Companies, Inc. stock research
FY2022 Q4
Lowe's Companies (LOW) Gross Margin — Quarter Ended Feb 3, 2023
Revenue and gross profit both decreased from the prior quarter but increased from the same quarter last year. Gross margin weakened compared with both the prior quarter and the year-ago period, reflecting that cost of revenue grew faster than revenue on a year-over-year basis and declined less than revenue sequentially.
Gross margin takeaway
Quarter ended Feb 3, 2023 · FY2022 Q4
Revenue and gross profit both decreased from the prior quarter but increased from the same quarter last year. Gross margin weakened compared with both the prior quarter and the year-ago period, reflecting that cost of revenue grew faster than revenue on a year-over-year basis and declined less than revenue sequentially.
- The most observable driver is the relative movement of cost of revenue versus revenue. Sequentially, revenue fell more than cost of revenue, compressing margin; year over year, cost of revenue rose at a faster pace than revenue, also reducing margin.
- Compared with the prior quarter, revenue and gross profit were lower and gross margin weakened. Compared with the same quarter a year ago, revenue and gross profit were higher but gross margin weakened, as cost of revenue increased more rapidly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
32.3%
Gross profit
$7.3B
Revenue
$22.4B
Cost of revenue
$15.2B
Quarter-over-quarter change
n/a
Year-over-year change
-0.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Feb 3, 2023 | $22.4B | $7.3B | $15.2B | 32.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Jan 28, 2022
-0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver is the relative movement of cost of revenue versus revenue. Sequentially, revenue fell more than cost of revenue, compressing margin; year over year, cost of revenue rose at a faster pace than revenue, also reducing margin.
Compared with the prior quarter, revenue and gross profit were lower and gross margin weakened. Compared with the same quarter a year ago, revenue and gross profit were higher but gross margin weakened, as cost of revenue increased more rapidly.
Monitor the relationship between revenue growth and cost of revenue growth; if cost continues to outpace revenue, margin may remain under pressure.