LOWNEUTRAL

LOW Gross Margin Analysis

32.7%

Updated 6h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue left after paying the direct costs of producing goods, so 32.7% means Lowe's keeps about $0.33 of every sales dollar before other expenses.

Sector Performance

25th percentile

LOW

32.7%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

39.2%(Apr 2026)

↓ Declining

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Deep Analysis

Gross margin is the percentage of revenue left after paying the direct costs of producing goods, so 32.7% means Lowe's keeps about $0.33 of every sales dollar before other expenses.

That figure sits below its sector peers, whose median gross margin is 46.4%, placing Lowe's in the 26th percentile of that group. The trend is not available: the year-over-year change is N/A and the quarter-over-quarter change is N/A, so there is no recent direction to assess. Because the level is low but the trend is unknown, the main risk is that margins may stay below peer levels, while the opportunity would depend on an improvement that cannot be confirmed. This mixed picture aligns with the overall NEUTRAL verdict: the low relative level is a caution, but without trend data there is no basis to shift to a more positive or negative stance. The metric neither contradicts nor strongly supports the verdict, leaving it consistent with neutral.

Frequently Asked Questions

What does the Gross Margin tell investors about LOW?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are LOW's closest peers by Gross Margin?

The closest peers by Gross Margin include: LVS (46.9%), ORLY (51.4%), MPWR (55.2%), NEM (56.0%), REI (56.0%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.