Company: HOVVB
Filing Date: 2025-02-28
Form Type: 10-Q
Source: 0001753926-25-000367
Chunk: 14

Company: HOVNANIAN ENTERPRISES INC
Filing Date: 2025-02-28
Form: 10-Q
Item: Part I, Item 2
Chunk 14
---
 of sales interest expense and land charges  

118,169

125,188

 Cost of sales interest expense, excluding land sales interest expense  

18,738

19,898

 Homebuilding gross margin, after cost of sales interest expense, before land charges  

99,431

105,290

 Land charges  

1,040

302

 Homebuilding gross margin  
 
$
98,391

$
104,988

 Homebuilding gross margin percentage  

15.2
%

18.3
% 

 Homebuilding gross margin percentage, before cost of sales interest expense and land charges  

18.3
%

21.8
% 

 Homebuilding gross margin percentage, after cost of sales interest expense, before land charges  

15.4
%

18.4
%    

29    

Cost of sales as a percentage of consolidated home sales revenues are presented below:

Three Months Ended 

January 31, 

2025 

2024 

 Sale of homes  

100.0
%

100.0
% 

 Cost of sales, excluding interest expense and land charges:  

 Housing, land and development costs  

71.2
%

67.9
% 

 Commissions  

3.1
%

3.4
% 

 Financing concessions  

3.2
%

2.5
% 

 Overheads  

4.2
%

4.4
% 

 Total cost of sales, excluding interest expense and land charges  

81.7
%

78.2
% 

 Cost of sales interest  

2.9
%

3.4
% 

 Land charges  

0.2
%

0.1
% 

 Homebuilding gross margin percentage  

15.2
%

18.3
% 

 Homebuilding gross margin percentage, before cost of sales interest expense and land charges  

18.3
%

21.8
% 

 Homebuilding gross margin percentage, after cost of sales interest expense, before land charges  

15.4
%

18.4
%    

We sell a variety of home types in various communities, each yielding a different gross margin. As a result, depending on the mix of communities delivering homes, consolidated gross margin may fluctuate up or down. Total homebuilding gross margin percentage decreased to 15.2% for the three months ended January 31, 2025, compared to 18.3% for the prior year period. Total homebuilding gross margin percentage, before cost of sales interest expense and land charges decreased to 18.3% for the three months ended January 31