LO

Lowe's Companies, Inc. stock research

Feb 2, 2024

FY2023 Q4

Lowe's Companies (LOW) Gross Margin — Quarter Ended Feb 2, 2024

Revenue and gross profit were lower than both the prior quarter and the same quarter last year. Gross margin weakened sequentially but improved slightly compared to the year-ago period.

Gross margin takeaway

Quarter ended Feb 2, 2024 · FY2023 Q4

Revenue and gross profit were lower than both the prior quarter and the same quarter last year. Gross margin weakened sequentially but improved slightly compared to the year-ago period.

  • The sequential decline in gross margin was associated with a proportionally smaller decrease in cost of revenue relative to the decrease in revenue.
  • Compared to the immediately preceding quarter, gross margin was lower. Compared to the same quarter one year earlier, gross margin was slightly higher.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

32.4%

Gross profit

$6.0B

Revenue

$18.6B

Cost of revenue

$12.6B

Quarter-over-quarter change

-1.3 pts

Year-over-year change

+0.1 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
May 5, 2023$22.3B$7.5B$14.8B33.7%
Aug 4, 2023$25.0B$8.4B$16.6B33.7%
Nov 3, 2023$20.5B$6.9B$13.6B33.7%
Feb 2, 2024$18.6B$6.0B$12.6B32.4%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Nov 3, 2023

-1.3 pts

Year-over-year change

Feb 3, 2023

+0.1 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The sequential decline in gross margin was associated with a proportionally smaller decrease in cost of revenue relative to the decrease in revenue.

Compared to the immediately preceding quarter, gross margin was lower. Compared to the same quarter one year earlier, gross margin was slightly higher.

Monitor the relationship between cost of revenue and revenue trends in upcoming quarters.

LOW Gross Margin — Quarter Ended Feb 2, 2024