Revenue

12 Months Ended

Feb. 03, 2023

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)	Years Ended
	February 3, 2023		January 28, 2022		January 29, 2021
Products	$	93,392	$	92,415	$	86,046
Services	2,178		2,304		1,949
Other	1,489		1,531		1,602
Net sales	$	97,059	$	96,250	$	89,597

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)	Classification	February 3, 2023		January 28, 2022
Anticipated sales returns	Other current liabilities	$	234	$	245
Right of return assets	Other current assets	139		151

Deferred revenue - retail and stored-value cards

Deferred revenue for retail and stored-value cards are as follows:

(In millions)	February 3, 2023		January 28, 2022
Retail deferred revenue	$	933	$	1,285
Stored-value cards deferred revenue	670		629
Deferred revenue	$	1,603	$	1,914

Deferred revenue - Lowe’s protection plans

Deferred revenue associated with Lowe’s protection plans is as follows:

(In millions)	February 3, 2023		January 28, 2022
Deferred revenue - Lowe’s protection plans	$	1,201	$	1,127

Lowe’s protection plan sales previously recorded as deferred revenue and claim expenses incurred are as follows:

(In millions)	Years Ended
	February 3, 2023		January 28, 2022		January 29, 2021
Lowe’s protection plan deferred revenue recognized into sales	$	527	$	488	$	430
Lowe’s protection plan claim expenses	180		178		158

Disaggregation of Revenues

The following table presents the Company’s net sales disaggregated by merchandise division:

	Years Ended
	February 3, 2023				January 28, 2022				January 29, 2021
(In millions)	Total Sales		%		Total Sales		%		Total Sales		%
Home Décor ¹	$	36,221	37.3	%	$	35,712	37.1	%	$	33,152	37.0	%
Building Products ²	31,048		32.0		29,621		30.8		26,541		29.6
Hardlines ³	27,190		28.0		28,412		29.5		27,931		31.2
Other	2,600		2.7		2,505		2.6		1,973		2.2
Total	$	97,059	100.0	%	$	96,250	100.0	%	$	89,597	100.0	%

Note: Merchandise division net sales for prior periods have been reclassified to conform to the current year presentation.

1    Home Décor includes the following product categories: Appliances, Décor, Flooring, Kitchens & Bath, and Paint.

2    Building Products includes the following product categories: Building Materials, Electrical, Lumber, Millwork, and Rough Plumbing.

3    Hardlines includes the following product categories: Hardware, Lawn & Garden, Seasonal & Outdoor Living, and Tools.

The following table presents the Company’s net sales disaggregated by geographical area:

(In millions)	Years Ended
	February 3, 2023		January 28, 2022		January 29, 2021
United States	$	92,010	$	90,348	$	84,303
Canada 1	5,049		5,902		5,294
Net Sales	$	97,059	$	96,250	$	89,597