Lowe's Companies, Inc. stock research
FY2024 Q2
Lowe's Companies (LOW) Gross Margin — Quarter Ended Aug 2, 2024
Revenue, gross profit, and cost of revenue all increased compared to the prior quarter, with gross profit rising more than revenue, leading to an improved gross margin. Compared to the same quarter last year, all three metrics decreased, and gross profit declined slightly more than revenue, resulting in a marginally lower gross margin.
Gross margin takeaway
Quarter ended Aug 2, 2024 · FY2024 Q2
Revenue, gross profit, and cost of revenue all increased compared to the prior quarter, with gross profit rising more than revenue, leading to an improved gross margin. Compared to the same quarter last year, all three metrics decreased, and gross profit declined slightly more than revenue, resulting in a marginally lower gross margin.
- The strongest observable margin driver is the relative change between gross profit and revenue. Sequentially, gross profit grew faster than revenue, while year-over-year it fell faster.
- Revenue and gross profit were higher than the previous quarter but lower than the same quarter last year. Gross margin improved sequentially but weakened year-over-year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
33.5%
Gross profit
$7.9B
Revenue
$23.6B
Cost of revenue
$15.7B
Quarter-over-quarter change
+0.3 pts
Year-over-year change
-0.2 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 |
|---|---|---|---|---|
| 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% |
| Aug 2, 2024 | $23.6B | $7.9B | $15.7B | 33.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 3, 2024
+0.3 pts
Year-over-year change
Aug 4, 2023
-0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relative change between gross profit and revenue. Sequentially, gross profit grew faster than revenue, while year-over-year it fell faster.
Revenue and gross profit were higher than the previous quarter but lower than the same quarter last year. Gross margin improved sequentially but weakened year-over-year.
Monitor the trend in cost of revenue relative to revenue, as it directly influences gross margin movements.