NET SALES

3 Months Ended

Apr. 30, 2023

Revenue from Contract with Customer [Abstract]

Net Sales

NET SALES

The following table presents net sales, classified by geography:

	Three Months Ended
in millions	April 30, 2023		May 1, 2022
Net sales – in the U.S.	$	34,507	$	36,006
Net sales – outside the U.S.	2,750		2,902
Net sales	$	37,257	$	38,908

The following table presents net sales by products and services:

	Three Months Ended
in millions	April 30, 2023		May 1, 2022
Net sales – products	$	35,888	$	37,465
Net sales – services	1,369		1,443
Net sales	$	37,257	$	38,908

The following table presents major product lines and the related merchandising departments (and related services):

Major Product Line	Merchandising Departments
Building Materials	Building Materials, Electrical/Lighting, Lumber, Millwork, and Plumbing
Décor	Appliances, Décor/Storage, Flooring, Kitchen and Bath, and Paint
Hardlines	Hardware, Indoor Garden, Outdoor Garden, and Tools

The following table presents net sales by major product line (and related services):

	Three Months Ended
in millions	April 30, 2023		May 1, 2022
Building Materials	$	14,079	$	14,869
Décor	12,251		12,874
Hardlines	10,927		11,165
Net sales	$	37,257	$	38,908

Deferred Revenue

For products and services sold in stores or online, payment is typically due at the point of sale. When we receive payment from customers before the customer has taken possession of the merchandise or the service has been performed, the amount received is recorded as deferred revenue until the sale or service is complete. Such performance obligations are part of contracts with expected original durations of typically three months or less. As of April 30, 2023 and January 29, 2023, deferred revenue for products and services was $2.1 billion and $2.0 billion, respectively.

We further record deferred revenue for the sale of gift cards and recognize the associated revenue upon the redemption of those gift cards, which generally occurs within six months of gift card issuance. As of April 30, 2023 and January 29, 2023, our performance obligations for unredeemed gift cards were $1.0 billion and $1.1 billion, respectively. Gift card breakage income, which is our estimate of the portion of our outstanding gift card balance not expected to be redeemed, was immaterial during the three months ended April 30, 2023 and May 1, 2022.