Segment reporting

12 Months Ended

Jan. 31, 2025

Segment reporting

Segment reporting

10.Segment reporting

The Company manages its business on the basis of one reportable operating segment. See Note 1 for a brief description of the Company’s business. As of January 31, 2025, the Company’s retail store operations were primarily located within the United States, with eight retail stores in Mexico. Certain product sourcing and other operations are located outside the United States, which collectively are not material with regard to assets, results of operations or otherwise to the consolidated financial statements. The following net sales data is presented in accordance with accounting standards related to disclosures about segments of an enterprise.

(in thousands)	2024		2023		2022
Classes of similar products:
Consumables	$	33,370,910	$	31,342,595	$	30,155,218
Seasonal		4,073,317		4,083,790		4,182,815
Home products		2,074,379		2,163,806		2,332,411
Apparel		1,093,702		1,101,418		1,174,419
Net sales	$	40,612,308	$	38,691,609	$	37,844,863

The Company’s Chief Operating Decision maker (“CODM”) is the Chief Executive Officer. The measure of profit or loss utilized by the CODM in assessing segment performance and allocating resources is net income as presented on the Company’s Consolidated Statements of Income. The measure of segment assets is reported on the balance sheet as total consolidated assets. Net income is used to evaluate income generated from the use of segment assets which aids in the determination of the allocation of Company resources. Net income is also utilized to monitor budget versus actual results. The following is a reconciliation of segment revenue and significant segment expenses to net income, the measure of profit or loss:

(in thousands)	2024		2023		2022
Net sales	$	40,612,308	$	38,691,609	$	37,844,863
Less:
Shrink included in cost of goods sold		928,896		910,674		481,011
Cost of goods sold, excluding shrink(b)		27,665,915		26,061,911		25,543,754
Interest expense, net		274,320		326,781		211,273
Income tax expense		314,501		458,245		700,625
Other segment items (a)(b)		10,303,423		9,272,724		8,492,211
Consolidated net income	$	1,125,253	$	1,661,274	$	2,415,989

(a) Other segment items include all remaining SG&A expenses and other (income) expense as disclosed in the Consolidated Statements of Income which were not deemed individually significant for disclosure. These expense items include rent expense as disclosed in Note 4 as well as advertising costs and impairment expense as disclosed in Note 1.

(b) Depreciation and amortization expense included in Cost of goods sold and SG&A expenses was approximately $971.7 million, $848.8 million and $724.9 million for 2024, 2023 and 2022.