Thu, Aug 1, 8:43 PM (88 days ago)
For the quarter ending June 30, 2024, W.W. Grainger, Inc. reported net sales of $4,312 million, marking a 3.1% increase from the same period in 2023, driven primarily by volume growth. Gross profit rose by 3% to $1,694 million, maintaining a gross profit margin of 39.3%. However, selling, general, and administrative (SG&A) expenses increased by 6.3% to $1,045 million, leading to a slight decline in operating earnings to $649 million, down 1.8% from the previous year. Net earnings remained flat at $490 million, with diluted earnings per share rising by 2.5% to $9.51. The High-Touch Solutions N.A. segment saw a 3.1% increase in net sales to $3,458 million, while the Endless Assortment segment experienced a 3.3% rise to $776 million. Despite these gains, operating earnings for both segments declined slightly due to increased SG&A expenses. For the six-month period, net sales increased by 3.3% to $8,547 million, with a gross profit margin slightly declining to 39.3%. Operating earnings for the first half of 2024 were $1,318 million, a 1.7% decrease from the prior year. The company maintained a strong liquidity position with $769 million in cash and cash equivalents, and net cash provided by operating activities increased to $1,072 million. Grainger continues to focus on mitigating macroeconomic pressures and remains committed to returning excess cash to shareholders through dividends and share repurchases.