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SEGMENT REPORTING AND NET SALES
 12 Months Ended
Feb. 02, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING AND NET SALES SEGMENT REPORTING AND NET SALES
Segment Reporting
The Company defines its segments based on how internally reported financial information is regularly reviewed by the chief operating decision maker (“CODM”), our President and Chief Executive Officer, to analyze financial performance, make decisions, and allocate resources.
Primary Segment. We are engaged in the operation of retail stores and sell a wide assortment of building materials, home improvement products, lawn and garden products, décor products, and facilities MRO products both in stores and online. We also provide a number of services, including home improvement installation services, and tool and equipment rental. We currently conduct these operations in the U.S. (including the Commonwealth of Puerto Rico and the territories of the U.S. Virgin Islands and Guam), Canada, and Mexico, each of which represents an operating segment. For disclosure purposes, we aggregate these three geographic operating segments into one reportable segment (the “Primary segment”) due to the similar nature of their operations and economic characteristics.
Other. As discussed in Note 13, in June 2024, we acquired SRS, a leading residential specialty trade distribution company across several verticals serving the professional roofer, landscaper and pool contractor through its branches located throughout the U.S. SRS is organized as three different lines of business: roofing and complementary building products, landscape, and pool. We have determined that each of these three lines of business represents an operating segment, none of which meets the thresholds prescribed under Topic 280 to be deemed a reportable segment. Therefore, results from our SRS operating segments are presented in “Other” beginning from the acquisition date of June 18, 2024.
Segment Information. For our Primary segment, our CODM uses operating income to allocate resources in the planning and forecasting process and to assess segment performance by monitoring actual results versus prior-period, forecasted results, and the annual plan. Assets are reviewed by our CODM on a total company consolidated basis and not by segment. The accounting policies of our Primary segment are the same as those described in our summary of significant accounting policies.
The following table presents net sales, significant expenses, and operating income for our Primary segment:
in millions
Fiscal
2024
Fiscal
2023
Fiscal
2022
Net sales
$153,108 $152,669 $157,403 
Cost of sales
101,194 101,709 104,625 
Gross profit
51,914 50,960 52,778 
Operating expenses:
Selling, general and administrative
27,822 26,598 26,284 
Depreciation and amortization
2,779 2,673 2,455 
Total operating expenses
30,601 29,271 28,739 
Primary segment operating income
$21,313 $21,689 $24,039 
The following table presents a reconciliation of certain Primary segment information to our consolidated totals:
Fiscal 2024
in millionsPrimary SegmentOtherConsolidated
Net sales
$153,108 $6,406 $159,514 
Operating income
21,313 213 21,526 
Interest income and other, net
(201)
Interest expense
2,321 
Earnings before provision for income taxes
$19,406 
Depreciation and amortization (1)
$3,350 $358 $3,708 
—————
(1)Includes depreciation and finance lease amortization in cost of sales. Also includes intangible asset amortization expense of $207 million in our Primary segment and $218 million in Other.
Net sales presented in Other relate to the sale of products by SRS, with roofing and related products accounting for approximately 68% of sales in Other during fiscal 2024.
Prior to the SRS acquisition, our total Company consolidated results represented our Primary segment. Therefore, a reconciliation to our consolidated totals is not applicable for fiscal 2023 or fiscal 2022.
The following table presents net property and equipment, classified by geography:
in millionsFebruary 2,
2025		January 28,
2024		January 29,
2023
Net property and equipment – in the U.S.$24,193 $23,347 $23,057 
Net property and equipment – outside the U.S.2,509 2,807 2,574 
Net property and equipment$26,702 $26,154 $25,631 
Net Sales
The following table presents our Primary segment major product lines and the related merchandising departments (and related services):
Major Product LineMerchandising Departments
Building Materials
Building Materials, Electrical, Lumber, Millwork, and Plumbing
Décor
Appliances, Bath, Flooring, Kitchen & Blinds, Lighting, and Paint
Hardlines
Hardware, Indoor Garden, Outdoor Garden, Power, and Storage & Organization
During the first quarter of fiscal 2024, we made certain changes to our merchandising department structure that realigned certain merchandising departments across our three major product lines within our Primary segment. As a result, prior-year amounts in each of the tables below have been reclassified to conform with the current-year presentation. These changes had no impact on consolidated net sales.
The following table presents net sales by major product line (and related services) within our Primary segment, as well as Other net sales:
FiscalFiscalFiscal
in millions202420232022
Building Materials$52,756 $52,661 $54,572 
Décor51,790 51,945 54,442 
Hardlines48,562 48,063 48,389 
Primary segment net sales
153,108 152,669 157,403 
Other net sales
6,406 — — 
Net sales
$159,514 $152,669 $157,403 
The following table presents net sales by merchandising department (and related services) within our Primary segment, as well as Other net sales:
FiscalFiscalFiscal
202420232022
dollars in millionsNet
Sales		% of
 Net Sales		Net
Sales		% of
Net Sales		Net
Sales		% of
Net Sales
Appliances$14,046 8.8 %$13,917 9.1 %$14,521 9.2 %
Bath
6,485 4.1 6,630 4.3 6,855 4.4 
Building Materials12,423 7.8 12,118 7.9 11,410 7.2 
Electrical
7,877 4.9 8,038 5.3 8,824 5.6 
Flooring
8,596 5.4 8,762 5.7 9,198 5.8 
Hardware
8,999 5.6 9,010 5.9 8,953 5.7 
Indoor Garden
10,519 6.6 10,283 6.7 10,105 6.4 
Kitchen & Blinds
7,238 4.5 7,154 4.7 7,751 4.9 
Lighting
4,222 2.6 4,531 3.0 5,036 3.2 
Lumber11,762 7.4 11,721 7.7 13,436 8.5 
Millwork8,337 5.2 8,301 5.4 8,428 5.4 
Outdoor Garden10,308 6.5 10,278 6.7 10,039 6.4 
Paint11,203 7.0 10,951 7.2 11,081 7.0 
Plumbing12,357 7.7 12,483 8.2 12,474 7.9 
Power
13,100 8.2 12,864 8.4 13,271 8.4 
Storage & Organization
5,636 3.5 5,628 3.7 6,021 3.8 
Primary segment net sales
153,108 96.0 152,669 100.0 157,403 100.0 
Other net sales
6,406 4.0 — — — — 
Net sales
$159,514 100.0 %$152,669 100.0 %$157,403 100.0 %
—————
Note: Certain percentages may not sum to totals due to rounding.
See additional discussion above for information on the components of Other net sales.
The following table presents net sales, classified by geography:
 FiscalFiscalFiscal
in millions202420232022
Net sales – in the U.S.$147,007 $140,083 $144,840 
Net sales – outside the U.S.12,507 12,586 12,563 
Net sales$159,514 $152,669 $157,403 
The following table presents net sales by products and services:
 FiscalFiscalFiscal
in millions202420232022
Net sales – products $153,674 $146,835 $151,804 
Net sales – services 5,840 5,834 5,599 
Net sales$159,514 $152,669 $157,403 
No sales to an individual customer accounted for more than 10% of revenue during any of the last three fiscal years.