Lowe's Companies, Inc. stock research
FY2023 Q2
Lowe's Companies (LOW) Gross Margin — Quarter Ended Aug 4, 2023
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue rose proportionally, leaving gross margin unchanged. Versus the same quarter last year, revenue and gross profit were lower, but gross margin improved slightly as cost of revenue declined more than revenue.
Gross margin takeaway
Quarter ended Aug 4, 2023 · FY2023 Q2
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue rose proportionally, leaving gross margin unchanged. Versus the same quarter last year, revenue and gross profit were lower, but gross margin improved slightly as cost of revenue declined more than revenue.
- Gross margin remained stable sequentially at the same level, indicating that the relationship between revenue and cost of revenue did not shift materially. The year-over-year improvement in gross margin, despite lower revenue, suggests that cost of revenue decreased at a faster rate than revenue.
- Compared to the prior quarter, revenue and gross profit were higher, and gross margin was unchanged. Compared to the same quarter last year, revenue and gross profit were lower, while gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
33.7%
Gross profit
$8.4B
Revenue
$25.0B
Cost of revenue
$16.6B
Quarter-over-quarter change
-0.0 pts
Year-over-year change
+0.4 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% |
| Aug 4, 2023 | $25.0B | $8.4B | $16.6B | 33.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 5, 2023
-0.0 pts
Year-over-year change
Jul 29, 2022
+0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin remained stable sequentially at the same level, indicating that the relationship between revenue and cost of revenue did not shift materially. The year-over-year improvement in gross margin, despite lower revenue, suggests that cost of revenue decreased at a faster rate than revenue.
Compared to the prior quarter, revenue and gross profit were higher, and gross margin was unchanged. Compared to the same quarter last year, revenue and gross profit were lower, while gross margin was higher.
Monitor whether the year-over-year improvement in gross margin persists if revenue stabilizes or grows.