The Home Depot, Inc. stock research
FY2024 Q3
The Home Depot (HD) Gross Margin — Quarter Ended Oct 27, 2024
Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue declined proportionally, resulting in a stable gross margin. Versus the same quarter last year, revenue and gross profit were higher, but gross margin weakened slightly as cost of revenue grew at a faster pace.
Gross margin takeaway
Quarter ended Oct 27, 2024 · FY2024 Q3
Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue declined proportionally, resulting in a stable gross margin. Versus the same quarter last year, revenue and gross profit were higher, but gross margin weakened slightly as cost of revenue grew at a faster pace.
- The gross margin remained unchanged from the prior quarter, indicating that the relationship between revenue and cost of revenue was consistent. The slight decline from the year-ago quarter suggests a modest shift in the cost structure relative to revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, but gross margin was stable. Compared to the same quarter one year earlier, revenue and gross profit were higher, while gross margin was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
33.4%
Gross profit
$13.4B
Revenue
$40.2B
Cost of revenue
$26.8B
Quarter-over-quarter change
-0.0 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 |
|---|---|---|---|---|
| Jan 28, 2024 | $34.8B | $11.5B | $23.3B | 33.1% |
| Apr 28, 2024 | $36.4B | $12.4B | $24.0B | 34.1% |
| Jul 28, 2024 | $43.2B | $14.4B | $28.8B | 33.4% |
| Oct 27, 2024 | $40.2B | $13.4B | $26.8B | 33.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 28, 2024
-0.0 pts
Year-over-year change
Oct 29, 2023
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin remained unchanged from the prior quarter, indicating that the relationship between revenue and cost of revenue was consistent. The slight decline from the year-ago quarter suggests a modest shift in the cost structure relative to revenue.
Compared to the immediately preceding quarter, revenue and gross profit were lower, but gross margin was stable. Compared to the same quarter one year earlier, revenue and gross profit were higher, while gross margin was slightly lower.
Monitor the trajectory of cost of revenue relative to revenue, as the year-over-year gross margin weakening suggests a potential shift in cost efficiency.