Stock Analysis on Net
Stock Analysis on Net

Lowe’s Cos. Inc. (NYSE:LOW)

Common-Size Income Statement 
Quarterly Data

Lowe’s Cos. Inc., common-size consolidated income statement (quarterly data)

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3 months ended: Aug 1, 2025 May 2, 2025 Jan 31, 2025 Nov 1, 2024 Aug 2, 2024 May 3, 2024 Feb 2, 2024 Nov 3, 2023 Aug 4, 2023 May 5, 2023 Feb 3, 2023 Oct 28, 2022 Jul 29, 2022 Apr 29, 2022 Jan 28, 2022 Oct 29, 2021 Jul 30, 2021 Apr 30, 2021 Jan 29, 2021 Oct 30, 2020 Jul 31, 2020 May 1, 2020 Jan 31, 2020 Nov 1, 2019 Aug 2, 2019 May 3, 2019
Net sales 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of sales -66.19 -66.62 -67.14 -66.31 -66.53 -66.81 -67.60 -66.34 -66.34 -66.32 -67.67 -66.70 -66.76 -65.97 -67.07 -66.90 -66.22 -66.71 -68.22 -67.28 -65.92 -66.90 -68.91 -67.56 -67.89 -68.54
Gross margin 33.81% 33.38% 32.86% 33.69% 33.47% 33.19% 32.40% 33.66% 33.66% 33.68% 32.33% 33.30% 33.24% 34.03% 32.93% 33.10% 33.78% 33.29% 31.78% 32.72% 34.08% 33.10% 31.09% 32.44% 32.11% 31.46%
Selling, general and administrative -17.43 -19.33 -20.59 -18.97 -17.07 -18.77 -20.96 -18.37 -16.37 -17.11 -22.86 -27.44 -16.21 -18.19 -22.22 -19.08 -17.02 -18.40 -22.35 -21.38 -18.39 -21.33 -22.99 -21.69 -19.28 -21.77
Depreciation and amortization -1.91 -2.13 -2.40 -2.15 -1.79 -2.00 -2.37 -2.12 -1.71 -1.86 -1.88 -1.92 -1.63 -1.88 -2.05 -1.85 -1.48 -1.60 -1.93 -1.59 -1.20 -1.66 -2.12 -1.78 -1.48 -1.70
Expenses -19.33% -21.46% -22.99% -21.12% -18.86% -20.77% -23.33% -20.49% -18.08% -18.97% -24.74% -29.36% -17.85% -20.07% -24.26% -20.94% -18.51% -20.00% -24.28% -22.97% -19.58% -22.98% -25.11% -23.48% -20.77% -23.47%
Operating income 14.48% 11.92% 9.86% 12.57% 14.61% 12.42% 9.07% 13.17% 15.57% 14.71% 7.59% 3.94% 15.39% 13.96% 8.66% 12.17% 15.27% 13.29% 7.50% 9.75% 14.49% 10.12% 5.98% 8.96% 11.34% 7.99%
Interest, net -1.31 -1.61 -1.76 -1.57 -1.34 -1.65 -1.87 -1.69 -1.37 -1.56 -1.43 -1.26 -0.96 -1.03 -1.10 -0.97 -0.78 -0.86 -1.00 -0.99 -0.80 -1.04 -1.14 -1.02 -0.81 -0.91
Loss on extinguishment of debt 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -4.75 0.00 0.00 0.00 0.00 0.00 0.00
Pre-tax earnings 13.17% 10.31% 8.10% 11.00% 13.27% 10.77% 7.20% 11.48% 14.21% 13.15% 6.16% 2.68% 14.43% 12.93% 7.56% 11.20% 14.49% 12.42% 6.50% 4.01% 13.69% 9.08% 4.84% 7.94% 10.54% 7.07%
Income tax provision -3.16 -2.47 -2.04 -2.60 -3.17 -2.56 -1.72 -2.82 -3.49 -3.04 -1.89 -2.02 -3.54 -3.07 -1.91 -2.92 -3.54 -2.92 -1.69 -0.91 -3.33 -2.28 -1.65 -1.91 -2.55 -1.18
Net earnings 10.01% 7.84% 6.06% 8.40% 10.10% 8.21% 5.48% 8.66% 10.71% 10.11% 4.27% 0.66% 10.89% 9.86% 5.66% 8.27% 10.95% 9.50% 4.82% 3.10% 10.36% 6.80% 3.18% 6.03% 7.98% 5.90%

Based on: 10-Q (reporting date: 2025-08-01), 10-Q (reporting date: 2025-05-02), 10-K (reporting date: 2025-01-31), 10-Q (reporting date: 2024-11-01), 10-Q (reporting date: 2024-08-02), 10-Q (reporting date: 2024-05-03), 10-K (reporting date: 2024-02-02), 10-Q (reporting date: 2023-11-03), 10-Q (reporting date: 2023-08-04), 10-Q (reporting date: 2023-05-05), 10-K (reporting date: 2023-02-03), 10-Q (reporting date: 2022-10-28), 10-Q (reporting date: 2022-07-29), 10-Q (reporting date: 2022-04-29), 10-K (reporting date: 2022-01-28), 10-Q (reporting date: 2021-10-29), 10-Q (reporting date: 2021-07-30), 10-Q (reporting date: 2021-04-30), 10-K (reporting date: 2021-01-29), 10-Q (reporting date: 2020-10-30), 10-Q (reporting date: 2020-07-31), 10-Q (reporting date: 2020-05-01), 10-K (reporting date: 2020-01-31), 10-Q (reporting date: 2019-11-01), 10-Q (reporting date: 2019-08-02), 10-Q (reporting date: 2019-05-03).

Gross Margin and Cost of Sales
The gross margin as a percentage of net sales exhibits relatively consistent fluctuations around the low to mid-30% range throughout the periods observed. It reached peaks slightly above 34% in mid-2020 and again in early 2022, indicating improved profitability during those times. Correspondingly, the cost of sales percentage fluctuated inversely, staying mostly in the mid- to high-60% range, evidencing an ongoing balance in cost management relative to revenue.
Selling, General and Administrative Expenses
These expenses as a percentage of net sales have experienced notable volatility. A downward trend to as low as approximately 16% occurred around mid-2022, suggesting efforts at expense control. However, sharp increases are seen at times, such as a spike to nearly 27.44% in late 2022, indicating episodic rises in operational costs. The general pattern demonstrates periodic tightening and loosening of administrative expenses over the quarters.
Depreciation and Amortization
These expenses remained relatively stable as a percentage of net sales, generally oscillating between about 1.2% and 2.4%. A modest upward trend is noticeable toward the later periods, potentially reflecting asset base growth or changes in amortization schedules.
Overall Expenses
Total expenses (combining relevant line items) generally fluctuate between approximately 17% and 29% of net sales, with some quarters displaying significant expense spikes. The highest expense ratio is observed around late 2022, which may be tied to previously mentioned increases in selling, general and administrative costs. Overall, expense management appears variable, with some quarters demonstrating tighter control than others.
Operating Income
Operating income as a percentage of net sales shows considerable variation, ranging from under 4% to over 15%. Peak operating margins occur around mid-2021 and mid-2022, indicating periods of enhanced operational efficiency or favorable market conditions. Conversely, troughs around late 2022 suggest operational challenges or higher costs impacting profitability.
Interest Expense and Debt-Related Charges
Interest expense ratios have generally increased over time, moving from approximately 0.8% to nearly 1.9% of net sales in some recent quarters, indicating a possible rise in debt levels or borrowing costs. There is an isolated significant loss on extinguishment of debt amounting to about 4.75% in one quarter, reflecting an unusual non-recurring charge affecting profitability in that period.
Pre-Tax Earnings
Pre-tax earnings margins echo the patterns in operating income, with wide swings evident throughout the timeline. Peaks exceeding 14% appear in mid-2020 and parts of 2021 and 2022, while notable declines below 3% correspond with quarters impacted by increased expenses and debt extinguishment losses.
Income Tax Provision
The tax provision as a percentage of net sales fluctuates between roughly -1% and -3.5%, showing significant variation that might be tied to changing pre-tax earnings levels and tax strategies. The data does not indicate a stable effective tax rate but rather responsive adjustments to fluctuating earnings.
Net Earnings
Net earnings as a percentage of net sales demonstrate a pattern of marked variability. High points reach near or above 10%, primarily observed in mid-2020 through mid-2022, highlighting periods of strong profitability. However, low points near or below 1% occur transiently, notably after spikes in expenses or extraordinary charges. Overall, profitability is uneven, influenced by operational factors and financial charges.
Summary of Trends
The financial data reveals cyclical and at times volatile profitability ratios, with gross margins generally stable but operating and net income margins subject to significant fluctuations. Expense control appears inconsistent, occasionally aligning with improved earnings but sometimes coinciding with lower profitability. Interest expenses have increased, possibly reflecting higher leverage or cost of debt. The presence of non-recurring losses significantly impacts certain periods. Tax provisions vary materially, reflecting shifts in earnings and related tax planning. The overall pattern suggests a company navigating fluctuating market or operational conditions with intermittent success in managing costs and sustaining profitability.