Lowe's Companies, Inc. stock research
FY2023 Q1
Lowe's Companies (LOW) Gross Margin — Quarter Ended May 5, 2023
Revenue was slightly lower than the prior quarter and lower than the same quarter last year, while gross profit was higher than the prior quarter but lower than a year ago. The gross margin improved sequentially but weakened compared to the year-ago period, reflecting a mixed performance.
Gross margin takeaway
Quarter ended May 5, 2023 · FY2023 Q1
Revenue was slightly lower than the prior quarter and lower than the same quarter last year, while gross profit was higher than the prior quarter but lower than a year ago. The gross margin improved sequentially but weakened compared to the year-ago period, reflecting a mixed performance.
- The sequential improvement in gross margin was driven by a larger decline in cost of revenue relative to the decline in revenue, resulting in higher gross profit despite slightly lower revenue.
- Compared to the prior quarter, gross margin improved as cost of revenue fell more than revenue. Compared to the same quarter last year, gross margin weakened as revenue and gross profit both declined, with cost of revenue declining less proportionally.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
33.7%
Gross profit
$7.5B
Revenue
$22.3B
Cost of revenue
$14.8B
Quarter-over-quarter change
+1.4 pts
Year-over-year change
-0.3 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% |
| May 5, 2023 | $22.3B | $7.5B | $14.8B | 33.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Feb 3, 2023
+1.4 pts
Year-over-year change
Apr 29, 2022
-0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was driven by a larger decline in cost of revenue relative to the decline in revenue, resulting in higher gross profit despite slightly lower revenue.
Compared to the prior quarter, gross margin improved as cost of revenue fell more than revenue. Compared to the same quarter last year, gross margin weakened as revenue and gross profit both declined, with cost of revenue declining less proportionally.
Monitor whether the cost of revenue continues to decline relative to revenue in upcoming quarters, as this dynamic has been the primary factor behind the sequential margin change.