The Home Depot, Inc. stock research
FY2023 Q1
The Home Depot (HD) Gross Margin — Quarter Ended Apr 30, 2023
Revenue and gross profit were higher than the previous quarter but lower than the same quarter last year. Gross margin improved sequentially but weakened year-over-year, reflecting a mixed performance.
Gross margin takeaway
Quarter ended Apr 30, 2023 · FY2023 Q1
Revenue and gross profit were higher than the previous quarter but lower than the same quarter last year. Gross margin improved sequentially but weakened year-over-year, reflecting a mixed performance.
- The sequential gross margin improvement was supported by cost of revenue rising less than revenue, while the year-over-year decline resulted from revenue falling more than cost of revenue.
- Compared to the prior quarter, gross margin increased as revenue grew faster than cost of revenue. Compared to the same quarter a year ago, gross margin decreased slightly as revenue declined more than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
33.7%
Gross profit
$12.6B
Revenue
$37.3B
Cost of revenue
$24.7B
Quarter-over-quarter change
+0.4 pts
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% |
| Apr 30, 2023 | $37.3B | $12.6B | $24.7B | 33.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 29, 2023
+0.4 pts
Year-over-year change
May 1, 2022
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential gross margin improvement was supported by cost of revenue rising less than revenue, while the year-over-year decline resulted from revenue falling more than cost of revenue.
Compared to the prior quarter, gross margin increased as revenue grew faster than cost of revenue. Compared to the same quarter a year ago, gross margin decreased slightly as revenue declined more than cost of revenue.
Monitor the trend in cost of revenue relative to revenue, as the year-over-year margin compression suggests cost efficiency may be under pressure.