Lowe's Companies, Inc. stock research
FY2023 Q3
Lowe's Companies (LOW) Gross Margin — Quarter Ended Nov 3, 2023
Revenue and gross profit both decreased from the prior quarter and from the same quarter last year, while cost of revenue also declined. Gross margin remained stable compared to the prior quarter and improved relative to the year-ago period.
Gross margin takeaway
Quarter ended Nov 3, 2023 · FY2023 Q3
Revenue and gross profit both decreased from the prior quarter and from the same quarter last year, while cost of revenue also declined. Gross margin remained stable compared to the prior quarter and improved relative to the year-ago period.
- The gross margin percentage was unchanged sequentially because cost of revenue declined at a similar pace as revenue. Year-over-year, the margin improved as cost of revenue fell slightly faster than revenue.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, but gross margin was stable. Versus the same quarter one year earlier, revenue and gross profit were lower, cost of revenue was lower, and 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
$6.9B
Revenue
$20.5B
Cost of revenue
$13.6B
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% |
| Nov 3, 2023 | $20.5B | $6.9B | $13.6B | 33.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Aug 4, 2023
+0.0 pts
Year-over-year change
Oct 28, 2022
+0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin percentage was unchanged sequentially because cost of revenue declined at a similar pace as revenue. Year-over-year, the margin improved as cost of revenue fell slightly faster than revenue.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, but gross margin was stable. Versus the same quarter one year earlier, revenue and gross profit were lower, cost of revenue was lower, and gross margin was higher.
Monitor whether the gross margin can sustain its current level if revenue continues to change in future quarters.