The Home Depot, Inc. stock research
FY2022 Q4
The Home Depot (HD) Gross Margin — Quarter Ended Jan 29, 2023
Revenue was essentially flat compared to the same quarter one year earlier, while gross profit and cost of revenue remained nearly unchanged, resulting in a gross margin that was slightly higher. Relative to the immediately preceding quarter, revenue, gross profit, and cost of revenue all decreased, and gross margin weakened modestly.
Gross margin takeaway
Quarter ended Jan 29, 2023 · FY2022 Q4
Revenue was essentially flat compared to the same quarter one year earlier, while gross profit and cost of revenue remained nearly unchanged, resulting in a gross margin that was slightly higher. Relative to the immediately preceding quarter, revenue, gross profit, and cost of revenue all decreased, and gross margin weakened modestly.
- The gross margin improved slightly versus the year-ago quarter, driven by a near-stable relationship between revenue and cost of revenue. The strongest observable driver is the relative stability of cost of revenue compared to revenue over the year-ago period.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Versus the same quarter one year earlier, revenue, gross profit, and cost of revenue were nearly unchanged, and gross margin was slightly higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
33.3%
Gross profit
$11.9B
Revenue
$35.8B
Cost of revenue
$23.9B
Quarter-over-quarter change
n/a
Year-over-year change
+0.1 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jan 29, 2023 | $35.8B | $11.9B | $23.9B | 33.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Jan 30, 2022
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved slightly versus the year-ago quarter, driven by a near-stable relationship between revenue and cost of revenue. The strongest observable driver is the relative stability of cost of revenue compared to revenue over the year-ago period.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Versus the same quarter one year earlier, revenue, gross profit, and cost of revenue were nearly unchanged, and gross margin was slightly higher.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters, as its near-flat movement versus the year-ago quarter was the primary factor behind the gross margin change.