Lowe's Companies, Inc. stock research
FY2024 Q4
Lowe's Companies (LOW) Gross Margin — Quarter Ended Jan 31, 2025
In the current quarter, gross profit and cost of revenue both decreased relative to revenue, yielding a gross margin that was lower than the prior quarter but higher than the same quarter last year. Revenue was unchanged from a year ago, while gross profit increased and cost of revenue decreased, leading to an improved gross margin year-over-year.
Gross margin takeaway
Quarter ended Jan 31, 2025 · FY2024 Q4
In the current quarter, gross profit and cost of revenue both decreased relative to revenue, yielding a gross margin that was lower than the prior quarter but higher than the same quarter last year. Revenue was unchanged from a year ago, while gross profit increased and cost of revenue decreased, leading to an improved gross margin year-over-year.
- The strongest observable margin driver is the year-over-year improvement in gross margin, as revenue remained stable while gross profit rose and cost of revenue fell.
- Compared to the prior quarter, revenue decreased more than cost of revenue, resulting in a lower gross margin. Compared to the same quarter last year, revenue was unchanged while gross profit increased and cost of revenue decreased, leading to a higher gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
32.9%
Gross profit
$6.1B
Revenue
$18.6B
Cost of revenue
$12.5B
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 |
|---|---|---|---|---|
| May 3, 2024 | $21.4B | $7.1B | $14.3B | 33.2% |
| Aug 2, 2024 | $23.6B | $7.9B | $15.7B | 33.5% |
| Nov 1, 2024 | $20.2B | $6.8B | $13.4B | 33.7% |
| Jan 31, 2025 | $18.6B | $6.1B | $12.5B | 32.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Nov 1, 2024
-0.8 pts
Year-over-year change
Feb 2, 2024
+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 year-over-year improvement in gross margin, as revenue remained stable while gross profit rose and cost of revenue fell.
Compared to the prior quarter, revenue decreased more than cost of revenue, resulting in a lower gross margin. Compared to the same quarter last year, revenue was unchanged while gross profit increased and cost of revenue decreased, leading to a higher gross margin.
Monitor whether the sequential decline in gross margin reverses in the upcoming quarter.