Gross profit decreased 0.9% year over year to $5,660 million, while gross margin contracted around 157 basis points (bps) to 32.5%. Moreover, operating income declined 38.1% to $957 million, owing to higher SG&A expenses while operating margin contracted 373 bps to 5.5%. Other Financial Aspects Lowe's, which competes with Home Depot ( HD - Free Report ), ended the quarter with cash and cash equivalents of $1,668 million, long-term debt (excluding current maturities) of $14,460 million and shareholders' equity of $5,394 million.