SEGMENT REPORTING AND NET SALES (Tables)

3 Months Ended

May 03, 2026

Schedule of Segment Reporting Information, by Segment

The following table presents net sales, significant expenses, and operating income for our Primary segment:


	Three Months Ended
in millions		May 3, 2026		May 4, 2025
Net sales		$	37,763	$	37,287
Cost of sales		24,745		24,384


Selling, general and administrative		7,358		7,164
Depreciation and amortization		695		693

Operating income		$	4,965	$	5,046

The following table presents a reconciliation of certain segment information to our consolidated totals:


	Three Months Ended			Three Months Ended
	May 3, 2026			May 4, 2025
in millions		Primary		Other (1)				Consolidated		Primary		Other (1)				Consolidated
Net sales		$	37,763	$	4,002			$	41,765	$	37,287	$	2,569			$	39,856

Operating income		4,965		16				4,981		5,046		87				5,133
Interest income and other, net								(7)								(24)
Interest expense								611								615
Earnings before provision for income taxes						$	4,377							$	4,542

Depreciation and amortization (2)		$	840	$	226			$	1,066	$	831	$	147			$	978

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(1) Net sales presented in Other relate to the sale of products within our SRS non-reportable operating segments, including the interior and construction products operating segment beginning in the third quarter of fiscal 2025 upon the acquisition of GMS. Operating income presented in Other includes cost of sales and operating expenses totaling $4.0 billion and $2.5 billion during the three months ended May 3, 2026 and May 4, 2025, respectively, within these SRS non-reportable operating segments.

(2) Includes depreciation and finance lease amortization in cost of sales. Also includes intangible asset amortization expense of $52 million for both the three months ended May 3, 2026 and May 4, 2025, respectively, in our Primary segment, and intangible asset amortization expense of $119 million and $87 million for the three months ended May 3, 2026 and May 4, 2025, respectively, in Other.

Schedule of Net Sales by Major Product Line

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


Major Product Line						Merchandising 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

Schedule of Net Sales by Products and Services

The following table presents net sales by major product line (and related services) within our Primary segment, as well as Other net sales:


	Three Months Ended
in millions		May 3, 2026		May 4, 2025
Building Materials		$	12,971	$	12,972
Décor		12,605		12,445
Hardlines		12,187		11,870
Primary segment net sales		37,763		37,287
Other net sales (1)		4,002		2,569
Net sales		$	41,765	$	39,856

—————

Note: Certain product category changes within our Primary segment in the current year have resulted in prior year amounts being reclassified to conform with the current-year presentation. These changes had no impact on consolidated net sales.

(1) Net sales presented in Other relate to the sale of products within our SRS non-reportable operating segments. Roofing and related products accounted for approximately 39% and 63% of Other net sales during the three months ended May 3, 2026 and May 4, 2025, respectively.

The following table presents net sales by products and services:


	Three Months Ended
in millions		May 3, 2026		May 4, 2025
Net sales – products		$	40,436	$	38,512
Net sales – services		1,329		1,344
Net sales		$	41,765	$	39,856

Schedule of Net Sales, Classified by Geography

The following table presents net sales, classified by geography:


	Three Months Ended
in millions		May 3, 2026		May 4, 2025
Net sales – in the U.S.		$	38,733	$	37,224
Net sales – outside the U.S.		3,032		2,632
Net sales		$	41,765	$	39,856