XML 26 R11.htm IDEA: XBRL DOCUMENT v3.25.2
Revenue
 6 Months Ended
Aug. 01, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Net sales consists primarily of revenue, net of sales tax, associated with contracts with customers for the sale of goods and services in amounts that reflect consideration the Company is entitled to in exchange for those goods and services.

The following table presents the Company’s sources of revenue:
(In millions)Three Months EndedSix Months Ended
August 1, 2025August 2, 2024August 1, 2025August 2, 2024
Products $22,973 $22,709 $43,141 $43,396 
Services655 548 1,200 1,080 
Other331 329 547 474 
Net sales$23,959 $23,586 $44,888 $44,950 
A provision for anticipated merchandise returns is provided through a reduction of sales and cost of sales in the period that the related sales are recorded.  The merchandise return reserve is presented on a gross basis, with a separate asset and liability included in the consolidated balance sheets. The balances and classification within the consolidated balance sheets for anticipated sales returns and the associated right of return assets are as follows:
(In millions)ClassificationAugust 1,
2025		August 2,
2024		January 31,
2025
Anticipated sales returnsOther current liabilities$211 $207 $167 
Right of return assetsOther current assets123 119 99 

Deferred revenue - retail and stored-value cards
Retail deferred revenue consists of amounts received for which customers have not yet taken possession of the merchandise or for which installation has not yet been completed. The majority of revenue for goods and services is recognized in the quarter following revenue deferral. Stored-value cards deferred revenue includes outstanding stored-value cards such as gift cards and returned merchandise credits that have not yet been redeemed. Deferred revenue for retail and stored-value cards are as follows:
(In millions)August 1,
2025		August 2,
2024		January 31,
2025
Retail deferred revenue$1,095 $922 $770 
Stored-value cards deferred revenue463 495 588 
Deferred revenue$1,558 $1,417 $1,358 

Deferred revenue - Lowe’s protection plans
The Company defers revenues for its separately-priced long-term extended protection plan contracts (Lowe’s protection plans) and recognizes revenue on a straight-line basis over the respective contract term. Expenses for claims are recognized in cost of sales when incurred.
(In millions)August 1,
2025		August 2,
2024		January 31,
2025
Deferred revenue - Lowe’s protection plans$1,283 $1,256 $1,268 

Three Months EndedSix Months Ended
(In millions)August 1, 2025August 2, 2024August 1, 2025August 2, 2024
Lowe’s protection plans deferred revenue recognized into sales$144 $140 $287 $279 
Lowe’s protection plans claim expenses61 50 119 104 

Disaggregation of Revenues

The following table presents the Company’s net sales disaggregated by merchandise division:
Three Months EndedSix Months Ended
August 1, 2025August 2, 2024August 1, 2025August 2, 2024
(In millions)Net Sales%Net Sales%Net Sales%Net Sales%
Home Décor1
$8,359 34.9 %$8,181 34.7 %$15,911 35.4 %$15,847 35.3 %
Hardlines2
7,817 32.6 7,718 32.7 14,221 31.7 14,357 31.9 
Building Products3
7,084 29.6 7,077 30.0 13,635 30.4 13,726 30.5 
Other699 2.9 610 2.6 1,121 2.5 1,020 2.3 
Total$23,959 100.0 %$23,586 100.0 %$44,888 100.0 %$44,950 100.0 %
Note: Merchandise division net sales for the prior period have been reclassified to conform to the current period presentation.
1    Home Décor includes the following product categories: Appliances, Décor, Flooring, Kitchens & Bath, and Paint.
2    Hardlines includes the following product categories: Hardware, Lawn & Garden, Seasonal & Outdoor Living, and Tools.
3    Building Products includes the following product categories: Building Materials, Electrical, Lumber, Millwork, and Rough Plumbing.