LOW · 10-Q · 2026Q3 · Full report

Operating Expense Trends

LOWES COMPANIES INC · 2026-08-27 · Importance 25 · Surprise 32

Second-quarter SG&A expense leveraged 25 basis points to 17.17% of sales, compared with 17.42% in the second quarter of fiscal 2025. Six-month SG&A leveraged 21 basis points to 18.10% of sales from 18.31%. The improvement primarily reflected the operational cost structure of the 2025 acquisitions. Depreciation and amortization deleveraged 29 basis points in the quarter and 31 basis points year to date, primarily because of intangible-asset amortization from acquired businesses.

Key facts

• For the second quarter of 2026, SG&A expense leveraged 25 basis points as a percentage of sales compared to the second quarter of 2025. source
• SG&A expense as a percentage of sales leveraged 21 basis points for the first six months of 2026 compared to 2025. source
• Depreciation and amortization deleveraged 29 basis points as a percentage of sales for the second quarter of 2026 compared to 2025, primarily due to amortization of intangible assets of acquired businesses in 2025. source
• Depreciation and amortization deleveraged 31 basis points as a percentage of sales for the first six months of 2026 compared to 2025. source
• Interest – net for the second quarter and first six months of 2026 deleveraged 13 basis points as a percentage of sales, primarily due to the costs related to the September 2025 debt issuance and the 2025 Term Loan. source