Lowe's Companies, Inc. stock research
FY2025 Q1
Lowe's Companies (LOW) Gross Margin — Quarter Ended May 2, 2025
Revenue and gross profit were lower than the same quarter last year but higher than the prior quarter, while cost of revenue followed a similar pattern. Gross margin improved compared to both the prior quarter and the year-ago period, reflecting a favorable relationship between revenue and cost of revenue.
Gross margin takeaway
Quarter ended May 2, 2025 · FY2025 Q1
Revenue and gross profit were lower than the same quarter last year but higher than the prior quarter, while cost of revenue followed a similar pattern. Gross margin improved compared to both the prior quarter and the year-ago period, reflecting a favorable relationship between revenue and cost of revenue.
- The sequential gross margin improvement was driven by revenue growth that outpaced the increase in cost of revenue, while the year-over-year improvement reflected a proportionally larger decline in cost of revenue relative to revenue.
- Compared to the prior quarter, revenue, gross profit, and cost of revenue were higher, and gross margin improved. Compared to the same quarter last year, revenue and gross profit were lower, cost of revenue was lower, and gross margin was slightly higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
33.4%
Gross profit
$7.0B
Revenue
$20.9B
Cost of revenue
$13.9B
Quarter-over-quarter change
+0.5 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 |
|---|---|---|---|---|
| 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% |
| May 2, 2025 | $20.9B | $7.0B | $13.9B | 33.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 31, 2025
+0.5 pts
Year-over-year change
May 3, 2024
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential gross margin improvement was driven by revenue growth that outpaced the increase in cost of revenue, while the year-over-year improvement reflected a proportionally larger decline in cost of revenue relative to revenue.
Compared to the prior quarter, revenue, gross profit, and cost of revenue were higher, and gross margin improved. Compared to the same quarter last year, revenue and gross profit were lower, cost of revenue was lower, and gross margin was slightly higher.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters, as the filing references forward-looking statements about macroeconomic conditions and consumer spending.