Grainger’s sales, earnings and profit each climbed in the third quarter on “slow, but steady” market demand, company officials said Thursday.
The Chicagoland-based MRO distribution giant — long the top company on ID’s Big 50 list — posted nearly $4.4 billion in net sales, up 4.3% over the third quarter of 2023. Gross profit was up 3.9% year-over-year to more than $1.7 billion, while operating earnings climbed 2.8% over that span to $686 million.
The company’s margins, however, slipped compared to the same quarter last year: gross profit margin was down 10 basis points to 39.2%, while operating margin declined 30 basis to 15.6%.
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Net earnings attributable to Grainger rose by 2.1% to $486 million, and diluted earnings came in at $9.87 per share, up 4.7% year-over-year.
Grainger’s High-Touch Solutions N.A. division — comprising mostly its larger customers — saw a 3.3% increase in sales amid broad growth in most end-markets and all geographic regions. The smaller customer-focused Endless Assortment segment, meanwhile, climbed 8.5%, which officials attributed to “core B2B customers” at online seller Zoro and strong enterprise customer performance at Japanese e-commerce operation MonotaRO.
The company narrowed its sales growth forecast heading into the final quarter of the year. Grainger now anticipates a 4% to 4.75% jump in annual sales compared to 2023 — which would translate to between $17.1 billion and $17.3 billion. The operating margin forecast also narrowed from an earlier 15.3% to 15.7% to 15.4% to 15.6% in the latest forecast.
"As we close out 2024, we are confident in our ability to execute well, meet our goals and drive results for all stakeholders,” Grainger Chairman and CEO D.G. Macpherson said in a statement.
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