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: Jul 31, 2026 May 1, 2026 Jan 30, 2026 Oct 31, 2025 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
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 -66.96 -67.32 -67.54 -65.81 -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
Gross margin 33.04% 32.68% 32.46% 34.19% 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%
Selling, general and administrative -17.17 -19.17 -21.42 -19.99 -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
Depreciation and amortization -2.20 -2.45 -2.74 -2.28 -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
Expenses -19.37% -21.62% -24.16% -22.27% -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%
Operating income 13.67% 11.07% 8.30% 11.92% 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%
Interest, net -1.44 -1.73 -1.96 -1.69 -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
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 0.00 0.00 0.00 0.00 -4.75 0.00 0.00
Pre-tax earnings 12.23% 9.34% 6.34% 10.23% 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%
Income tax provision -2.99 -2.28 -1.49 -2.46 -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
Net earnings 9.24% 7.05% 4.85% 7.76% 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%

Based on: 10-Q (reporting date: 2026-07-31), 10-Q (reporting date: 2026-05-01), 10-K (reporting date: 2026-01-30), 10-Q (reporting date: 2025-10-31), 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).

The common-size income statement reveals a pattern of cyclical operational performance characterized by stable gross margins but significant volatility in operating expenses and net profitability.

Gross Profitability and Cost Management
Gross margins remained relatively consistent throughout the period, generally fluctuating between 31.8% and 34.2%. The cost of sales stayed within a tight band, typically ranging from 65.8% to 68.2% of net sales. This stability suggests a consistent pricing strategy and a steady relationship with suppliers, regardless of quarterly sales volume.
Operating Expense Volatility
Selling, general and administrative (SG&A) expenses exhibit the highest degree of variance. A notable peak occurred in October 2022, where total expenses reached 29.36% of net sales, driven primarily by an SG&A spike to 27.44%. In contrast, periods of higher efficiency were observed in July 2021 and July 2022, where total expenses dropped to 18.51% and 17.85%, respectively. This volatility indicates that operating margins are more sensitive to overhead management than to the direct cost of goods sold.
Operating Income Trends
Operating income demonstrates a cyclical nature, with frequent peaks occurring in the third quarter of the calendar year, often reaching between 14% and 15.6% of net sales. A significant contraction in operating performance is evident in October 2022, where operating income fell to 3.94%, correlating directly with the spike in operating expenses during that period. Recovery followed in 2023, with margins returning to the 12% to 15% range.
Non-Operating Expenses and Financial Leverage
Net interest expenses show a gradual upward trend. In 2020, interest costs averaged approximately 0.9% of net sales; however, by 2024 and 2025, this figure shifted toward a range of 1.4% to 1.9%. A one-time loss on the extinguishment of debt representing 4.75% of net sales was recorded in October 2020, which significantly depressed pre-tax earnings for that specific quarter.
Net Earnings and Bottom-Line Performance
Net earnings margins reflect the combined impact of cyclical operating income and rising interest costs. Profitability peaked in July 2021 at 10.95% and reached a low of 0.66% in October 2022. While the company maintains a positive net margin across all reported periods, the volatility in the bottom line is primarily driven by fluctuations in SG&A spending and an increasing burden of interest expenses over time.

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