Industrial supply giant W.W. Grainger on Thursday raised its earnings outlook for 2023 amid a sharp increase in the first quarter of the year.
The Chicago-area distributor — long the top company on ID’s Big 50 list — posted sales of more than $4 billion in January through March, up 12.2% from the $3.6 billion reported in the first three months of 2022. The company’s operating earnings soared by 27.4% over that window, climbing from $534 million to $680 million, while net earnings attributable to Grainger and diluted earnings per share jumped by 33.4% and 36%, respectively.
Gross profit increased from $1.4 billion to $1.6 billion — up 18% year-over-year — while gross profit margin and operating margin each rose by 200 basis points.
Average daily sales in the company’s High-Touch Solutions segment rose by 14.5% in the latest quarter, which officials attributed to “strong price realization” and volume growth. Grainger’s Endless Assortment division — including online sellers Zoro and MonotaRO — saw a more modest increase of 3.8%
"The team continues to perform well amidst a resilient demand environment,” Grainger Chairman and CEO D.G. Macpherson said in a statement. “Both segments delivered strong growth and expanded margins, while we continued to invest in our growth engines and provide exceptional customer service.”
Grainger maintained its sales projections for the full fiscal year but raised its expectations for diluted earnings per share, along with its forecasts for profit margin, operating margin and operating cash flow. The company curbed its forecast, however, for the operating margin in the Endless Assortment segment.
