Grainger on Thursday reported first-quarter increases in sales, earnings and profit despite what officials characterized as a “muted demand environment.”
The MRO giant, long the top company on ID’s Big 50, also reaffirmed its initial outlook for the full fiscal year — after factoring in what it called “certain known impacts of tariffs” and assuming that “mitigating actions” would “help offset future potential impacts.”
Grainger posted just over $4.3 billion in net sales during the first three months of the year, up 1.7% compared to the same period last year. On an adjusted daily basis, which accounted for currency factors and one fewer selling day during the latest quarter, sales were up 4.4% year-over-year.
The company’s operating earnings edged up 0.4% over that span, while net earnings attributable to Grainger rose by 0.2%. Diluted earnings per share were up 2.5% due to fewer outstanding shares.
Gross profit was up 2.5%, translating to a gross profit margin of 39.7% — 30 basis points above the previous Q1. The company’s operating margin, however, dipped 20 basis points to 15.6%.
Grainger said that its High-Touch Solutions N.A. segment, focused on larger customers, saw a 0.2% year-over-year decline in sales, although that division’s revenue also rose on an adjusted daily basis. The Endless Assortment segment, meanwhile, saw a more than 10% jump in sales amid strong performances at online channels Zoro and MonotaRO.
“Across both segments, our team kicked off 2025 by excelling at what we do best: delivering exceptional service, advancing our capabilities and being a trusted partner for our customers," Grainger Chairman and CEO D.G. Macpherson said in a statement. "This focus on what truly matters has led to solid performance despite the continued muted demand environment.”
The suburban Chicago distributor also held its annual shareholders meeting virtually on Wednesday. Shareholders approved a slate of 12 directors to the company’s board, along with resolutions related to its independent auditor, executive compensation, and eliminating cumulative voting.
