Lowe’s Cos. Inc. (NYSE:LOW)

The financial data over multiple quarters exhibits notable fluctuations and trends in revenue, expenses, and profitability metrics.

Net Sales

Net sales reveal a cyclical but generally positive trend with significant seasonal peaks, particularly around mid-year periods (e.g., Q3 2020, Q2 2021, and Q2 2022). The highest spikes are observed in July 2020 and July 2021, reaching above $27 billion. Some declines occur intermittently, largely aligned with early calendar quarters and notably during Q2 2023 and Q2 2025, where sales decreased below $19 billion.

Cost of Sales

The cost of sales follows the sales pattern closely, increasing in line with sales spikes and decreasing during dips. The cost of sales peaks slightly after net sales peaks, indicating relatively stable gross margin ratios. The costs rose significantly during peak sales quarters, aligning with heightened operational activity.

Gross Margin

Gross margin fluctuates in parallel with sales and cost of sales but with a generally positive trend over time. There are important margin expansions during quarters with elevated sales, notably Q3 2020 and Q2 2021. The gross margin peaked at over $9 billion in these periods, implying effective cost control relative to revenue. Temporary contractions in margin coincide with dips in net sales and rising costs in some quarters, such as Q1 2023 and Q2 2025.

Selling, General, and Administrative Expenses (SG&A)

SG&A expenses increased steadily from 2019 through early 2022, with a pronounced spike in Q4 2022 reaching nearly $6.4 billion. After this spike, expenses generally moderated but remained elevated compared to earlier years. This suggests investments in administrative capabilities or costs associated with expanding operations. Despite some reduction after Q4 2022, SG&A costs maintain a high level relative to net sales.

Depreciation and Amortization

Depreciation and amortization expenses exhibit a steady, gradual increase throughout the periods analyzed, rising from around $300 million to over $450 million. This signals ongoing capital investments and asset base growth over time.

Total Expenses

Total expenses mirror the trends in SG&A and depreciation, peaking notably in Q4 2022 with expenses approaching $6.9 billion. This quarterly rise corresponds with the spike in administrative costs. Overall, expenses track sales growth but show increased volatility, reflecting shifts in operational scale and cost management.

Operating Income

Operating income showed strong growth with significant peaks in Q3 2020 and Q2 2021, exceeding $4 billion during these periods. However, post-2021 trends indicate increased volatility and several quarters with declining operating income, notably in Q4 2022 and some early 2025 quarters. This trend may reflect margin pressure from increased expenses and fluctuating sales.

Interest and Debt Costs

Interest expenses increased modestly over the time frame, consistent with rising debt levels. A one-time loss on extinguishment of debt occurred in Q4 2020, reducing net results for that quarter. This non-recurring charge significantly impacted the overall profitability in that period.

Pre-tax Earnings

Pre-tax earnings show a generally positive trajectory with marked peaks aligning with the strongest revenue quarters. The loss on debt extinguishment in Q4 2020 resulted in a substantial earnings reduction. Aside from that anomaly, earnings have followed operating income trends, with some softness after 2022, reflecting increased SG&A and overall expenses.

Income Tax Provision

Income tax provision oscillates in accordance with pre-tax earnings fluctuations, increasing during profitability peaks and decreasing in less profitable quarters. The tax provision maintains proportionality to earnings but evidences variability due to taxable income shifts and possibly tax planning or rate effects.

Net Earnings

Net earnings display strong correlation with operating income and pre-tax earnings, peaking strongly during mid-year quarters of 2020 and 2021 and showing volatility afterwards. A notable dip occurred in Q4 2022, consistent with elevated expenses reducing profitability. Overall, net earnings trend positively but with increased variability, highlighting the impacts of both operating leverage and cost shifts across quarters.

In summary, the data depicts a company experiencing strong cyclical sales growth with correspondingly increasing gross margins during peak periods, tempered by rising SG&A expenses and other costs. Profitability peaked in mid-2020 and mid-2021 but showed increased variability and pressure after 2022, partially driven by sharply higher administrative costs and interest expenses. The one-time debt extinguishment loss in late 2020 presented a significant isolated impact on financial results. Ongoing capital investment is reflected in steadily rising depreciation trends.