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SEGMENT REPORTING AND NET SALES
 3 Months Ended
May 03, 2026
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 retail operations and sell a wide assortment of home improvement products, building materials, lawn and garden products, décor products, and facilities maintenance, repair and operations 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. Through our SRS distribution operations, we are a leading specialty trade distributor of roofing and building products, interior and construction products, and outdoor living products, which consist of landscape and pool supplies. As of May 3, 2026, SRS was organized as four lines of business: 1) roofing and building products, 2) interior and construction products, 3) landscape, and 4) pool. Each of these four 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 these operating segments are presented in “Other.”
Segment Information. 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:
Three Months Ended
in millionsMay 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 EndedThree Months Ended
May 3, 2026May 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 
—————    
(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.
Net Sales
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
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 millionsMay 3,
2026		May 4,
2025
Building Materials$12,971 $12,972 
Décor12,605 12,445 
Hardlines12,187 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, classified by geography:
Three Months Ended
in millionsMay 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 
The following table presents net sales by products and services:
Three Months Ended
in millionsMay 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 
Deferred Revenue
For products and services sold in stores or online, payment is typically due at the point of sale. When we receive payment 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 May 3, 2026 and February 1, 2026, deferred revenue for products and services was $1.6 billion and $1.5 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 both May 3, 2026 and February 1, 2026, our performance obligations for unredeemed gift cards were $1.1 billion. Gift card breakage income, which is our estimate of the portion of our outstanding gift card balance not expected to be redeemed, is recognized in net sales and was immaterial during the three months ended May 3, 2026 and May 4, 2025.