The Home Depot, Inc. stock research
FY2024 Q1
The Home Depot (HD) Gross Margin — Quarter Ended Apr 28, 2024
Revenue and gross profit both increased compared to the immediately preceding quarter, while cost of revenue also rose. Gross margin improved relative to the prior quarter but was lower than the same quarter one year earlier.
Gross margin takeaway
Quarter ended Apr 28, 2024 · FY2024 Q1
Revenue and gross profit both increased compared to the immediately preceding quarter, while cost of revenue also rose. Gross margin improved relative to the prior quarter but was lower than the same quarter one year earlier.
- The strongest observable margin driver is the sequential improvement in gross margin from the prior quarter, as gross profit grew faster than cost of revenue. This indicates a favorable relationship between revenue and cost of revenue in the current quarter.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were lower, cost of revenue was lower, and gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
34.1%
Gross profit
$12.4B
Revenue
$36.4B
Cost of revenue
$24.0B
Quarter-over-quarter change
+1.1 pts
Year-over-year change
+0.4 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 |
|---|---|---|---|---|
| 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% |
| Apr 28, 2024 | $36.4B | $12.4B | $24.0B | 34.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 28, 2024
+1.1 pts
Year-over-year change
Apr 30, 2023
+0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the sequential improvement in gross margin from the prior quarter, as gross profit grew faster than cost of revenue. This indicates a favorable relationship between revenue and cost of revenue in the current quarter.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were lower, cost of revenue was lower, and gross margin weakened.
Monitor whether the year-over-year decline in gross margin continues in subsequent quarters.