The Home Depot, Inc. stock research
FY2024 Q4
The Home Depot (HD) Gross Margin — Quarter Ended Feb 2, 2025
Revenue and gross profit in the current quarter were lower than the immediately preceding quarter but higher than the same quarter one year earlier. Gross margin weakened both sequentially and year-over-year, as cost of revenue did not decline proportionally with revenue.
Gross margin takeaway
Quarter ended Feb 2, 2025 · FY2024 Q4
Revenue and gross profit in the current quarter were lower than the immediately preceding quarter but higher than the same quarter one year earlier. Gross margin weakened both sequentially and year-over-year, as cost of revenue did not decline proportionally with revenue.
- The strongest observable margin driver is the change in cost of revenue relative to revenue. Compared with the prior quarter, cost of revenue decreased at a slower rate than revenue, and compared with the year-ago quarter, it increased at a faster rate than revenue.
- Revenue and gross profit are lower than the immediately preceding quarter but higher than the same quarter one year earlier. Gross margin is lower than both prior periods.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
32.8%
Gross profit
$13.0B
Revenue
$39.7B
Cost of revenue
$26.7B
Quarter-over-quarter change
-0.6 pts
Year-over-year change
-0.3 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 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% |
| Feb 2, 2025 | $39.7B | $13.0B | $26.7B | 32.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 27, 2024
-0.6 pts
Year-over-year change
Jan 28, 2024
-0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the change in cost of revenue relative to revenue. Compared with the prior quarter, cost of revenue decreased at a slower rate than revenue, and compared with the year-ago quarter, it increased at a faster rate than revenue.
Revenue and gross profit are lower than the immediately preceding quarter but higher than the same quarter one year earlier. Gross margin is lower than both prior periods.
Monitor the trend of cost of revenue as a percentage of revenue, as it directly influences gross margin.