Lowe's Companies, Inc. stock research
FY2024 Q1
Lowe's Companies (LOW) Gross Margin — Quarter Ended May 3, 2024
Revenue and gross profit both decreased compared to the same quarter last year, while cost of revenue also declined. Gross margin weakened slightly versus the prior year but improved relative to the immediately preceding quarter.
Gross margin takeaway
Quarter ended May 3, 2024 · FY2024 Q1
Revenue and gross profit both decreased compared to the same quarter last year, while cost of revenue also declined. Gross margin weakened slightly versus the prior year but improved relative to the immediately preceding quarter.
- The strongest observable margin driver is the sequential improvement in gross margin from the prior quarter, as revenue and gross profit increased while cost of revenue rose at a slower pace.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, and gross margin improved. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
33.2%
Gross profit
$7.1B
Revenue
$21.4B
Cost of revenue
$14.3B
Quarter-over-quarter change
+0.8 pts
Year-over-year change
-0.5 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 |
|---|---|---|---|---|
| Aug 4, 2023 | $25.0B | $8.4B | $16.6B | 33.7% |
| Nov 3, 2023 | $20.5B | $6.9B | $13.6B | 33.7% |
| Feb 2, 2024 | $18.6B | $6.0B | $12.6B | 32.4% |
| May 3, 2024 | $21.4B | $7.1B | $14.3B | 33.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Feb 2, 2024
+0.8 pts
Year-over-year change
May 5, 2023
-0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the sequential improvement in gross margin from the prior quarter, as revenue and gross profit increased while cost of revenue rose at a slower pace.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, and gross margin improved. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened.
Monitor the trajectory of gross margin relative to the prior-year level, as it has weakened for two consecutive year-over-year comparisons.