LOWES COMPANIES INC - 10-Q Quarterly Report

Indicate by check mark
whether the registrant (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

Indicate by check mark
whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the
Exchange Act).

Indicate
the number of shares outstanding of each of the issuer's classes of common
stock, as of the latest practicable date.

-3-

LOWE'S COMPANIES, INC. - INDEX -
			Page No.
PART 1 - Financial Information
	Item 1. Financial Statements

		Consolidated Balance Sheets - August 1, 2003 (Unaudited),
		August 2, 2002 (Unaudited) and January 31, 2003	3

		Consolidated Statements of Current and
		Retained Earnings (Unaudited) - three and six months
		ended August 1, 2003 and August 2, 2002	4

		Consolidated Statements of Cash Flows (Unaudited) -
		six months ended August 1, 2003 and August 2, 2002	5

		Notes to Consolidated Financial Statements (Unaudited)	6-9

		Independent Accountants' Report	10

	Item 2. Management's Discussion and Analysis of Financial Condition and		11-16
		Results of Operations

	Item 3. Quantitative and Qualitative Disclosures about Market Risk		17

	Item 4. Controls and Procedures		17

PART II - Other Information
	Item 4. Submission of Matters to a Vote of Security Holders		18

	Item 6(a). Exhibits		19

	Item 6(b). Reports on Form 8-K		19

	Signature		20

	Exhibit Index		21

-4-

Lowe's Companies, Inc. Consolidated Balance Sheets In Millions, Except Par Value Data
			(Unaudited) August 1, 2003	(Unaudited) August 2, 2002	January 31, 2003
Assets
	Current assets:
	Cash and cash equivalents		$ 1,550	$ 1,487	$ 853
	Short-term investments		137	48	273
	Accounts receivable - net		199	201	172
	Merchandise inventory		4,652	3,987	3,968
	Deferred income taxes		67	106	58
	Other assets		226	182	244

	Total current assets		6,831	6,011	5,568

	Property, less accumulated depreciation		10,955	9,260	10,352
	Long-term investments		116	14	29
	Other assets		172	142	160

	Total assets		$ 18,074	$ 15,427	$ 16,109

Liabilities and Shareholders' Equity
	Current liabilities:
	Short-term borrowings		$ -	$ 50	$ 50
	Current maturities of long-term debt		73	44	29
	Accounts payable		2,612	2,106	1,943
	Employee retirement plans		40	75	88
	Accrued salaries and wages		246	258	306
	Other current liabilities		1,502	1,235	1,162

	Total current liabilities		4,473	3,768	3,578

	Long-term debt, excluding current maturities		3,684	3,733	3,736
	Deferred income taxes		524	312	478
	Other long-term liabilities		20	11	15

	Total liabilities		8,701	7,824	7,807

	Shareholders' equity:
	Preferred stock - $5 par value, none issued		-	-	-
	Common stock - $.50 par value;
	Shares Issued and Outstanding
	August 1, 2003	785
	August 2, 2002	780
	January 31, 2003	782	392	390	391
	Capital in excess of par		2,116	1,949	2,023
	Retained earnings		6,865	5,263	5,887
	Accumulated other comprehensive income		-	1	1

	Total shareholders' equity		9,373	7,603	8,302

	Total liabilities and shareholders' equity		$ 18,074	$ 15,427	$ 16,109

See accompanying notes to unaudited consolidated financial statements.

-5-

Lowe's Companies, Inc. Consolidated Statements of Current and Retained Earnings (Unaudited) In Millions, Except Per Share Data

	Three Months Ended				Six Months Ended
	August 1, 2003		August 2, 2002		August 1, 2003		August 2, 2002
Current Earnings	Amount	Percent	Amount	Percent	Amount	Percent	Amount	Percent
Net Sales	$ 8,773	100.00	$ 7,488	100.00	$ 15,984	100.00	$ 13,958	100.00
Cost of Sales	6,126	69.83	5,286	70.59	11,099	69.44	9,833	70.45
Gross Margin	2,647	30.17	2,202	29.41	4,885	30.56	4,125	29.55
Expenses:
Selling, general and administrative	1,431	16.31	1,233	16.47	2,746	17.18	2,374	17.01
Store opening costs	27	0.31	24	0.31	47	0.29	60	0.43
Depreciation	185	2.11	153	2.04	364	2.28	299	2.14
Interest	45	0.51	46	0.62	93	0.58	93	0.67
Total expenses	1,688	19.24	1,456	19.44	3,250	20.33	2,826	20.25
Pre-tax earnings	959	10.93	746	9.97	1,635	10.23	1,299	9.30
Income tax provision	362	4.13	279	3.73	618	3.87	486	3.48
Net earnings	$ 597	6.80	$ 467	6.24	$ 1,017	6.36	$ 813	5.82

Weighted average shares outstanding - Basic	784		779		783		778
Basic earnings per share	$ 0.76		$ 0.60		$ 1.30		$ 1.05
Weighted average shares outstanding - Diluted	804		800		803		799
Diluted earnings per share	$ 0.75		$ 0.59		$ 1.27		$ 1.02

Retained Earnings
Balance at beginning of period	$ 6,288		$ 4,812		$ 5,887		$ 4,482
Net earnings	597		467		1,017		813
Cash dividends	(20)		(16)		(39)		(32)
Balance at end of period	$ 6,865		$ 5,263		$ 6,865		$ 5,263

See accompanying notes to unaudited consolidated financial statements.

Lowe's Companies, Inc. Consolidated Statements of Cash Flows (Unaudited) In Millions
		Six Months Ended
		August 1, 2003	August 2, 2002
Cash Flows from Operating Activities:
	Net Earnings	$ 1,017	$ 813
	Adjustments to Reconcile Net Earnings to Net Cash Provided By Operating Activities:
	Depreciation and Amortization	373	308
	Deferred Income Taxes	37	(6)
	Loss on Disposition/Writedown of Fixed and Other Assets	15	9
	Stock-based Compensation Expense	15	-
	Tax Effect of Stock Options Exercised	10	13
	Changes in Operating Assets and Liabilities:
	Accounts Receivable - Net	(27)	(35)
	Merchandise Inventory	(684)	(376)
	Other Operating Assets	18	15
	Accounts Payable	669	391
	Employee Retirement Plans	(48)	15
	Other Operating Liabilities	285	481
	Net Cash Provided by Operating Activities	1,680	1,628

Cash Flows from Investing Activities:
	Decrease (Increase) in Investment Assets:
	Short-Term Investments	192	16
	Purchase of Long-Term Investments	(247)	(2)
	Proceeds from Sale/Maturity of Long-Term Investments	99	-
	Increase in Other Long-Term Assets	(28)	(16)
	Fixed Assets Acquired	(1,010)	(910)
	Proceeds from the Sale of Fixed and Other Long-Term Assets	44	15
	Net Cash Used in Investing Activities	(950)	(897)

Cash Flows from Financing Activities:
	Net Decrease in Short-Term Borrowings

x	QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended August 1, 2003

o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

	For the transition period from ________ to _________

NORTH CAROLINA	56-0578072
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1605 Curtis Bridge Road, Wilkesboro, NC	28697
(Address of principal executive offices)	(Zip Code)


Registrant's telephone number, including area code	(336) 658-4000

-1-

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

-1-

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

FORM 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549