The Home Depot, Inc. stock research
FY2023 Q4
The Home Depot (HD) Gross Margin — Quarter Ended Jan 28, 2024
Revenue and gross profit both declined from the previous quarter and from the same quarter a year ago, while cost of revenue fell less proportionally, causing gross margin to weaken slightly. The gross margin for this quarter is lower than both the immediately preceding quarter and the year-ago quarter.
Gross margin takeaway
Quarter ended Jan 28, 2024 · FY2023 Q4
Revenue and gross profit both declined from the previous quarter and from the same quarter a year ago, while cost of revenue fell less proportionally, causing gross margin to weaken slightly. The gross margin for this quarter is lower than both the immediately preceding quarter and the year-ago quarter.
- The gross margin weakened compared to the prior quarter and the year-ago quarter, driven by a relatively smaller decline in cost of revenue versus the decline in revenue. This indicates that the relationship between revenue and cost of revenue shifted unfavorably.
- Compared to the immediately preceding quarter, both revenue and gross profit are lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit are lower, and gross margin also weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
33.1%
Gross profit
$11.5B
Revenue
$34.8B
Cost of revenue
$23.3B
Quarter-over-quarter change
-0.7 pts
Year-over-year change
-0.2 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 |
|---|---|---|---|---|
| Apr 30, 2023 | $37.3B | $12.6B | $24.7B | 33.7% |
| Jul 30, 2023 | $42.9B | $14.2B | $28.8B | 33.0% |
| Oct 29, 2023 | $37.7B | $12.7B | $25.0B | 33.8% |
| Jan 28, 2024 | $34.8B | $11.5B | $23.3B | 33.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 29, 2023
-0.7 pts
Year-over-year change
Jan 29, 2023
-0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened compared to the prior quarter and the year-ago quarter, driven by a relatively smaller decline in cost of revenue versus the decline in revenue. This indicates that the relationship between revenue and cost of revenue shifted unfavorably.
Compared to the immediately preceding quarter, both revenue and gross profit are lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit are lower, and gross margin also weakened.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters to assess whether the gross margin trend stabilizes or continues to weaken.