GRAINGER REPORTS RESULTS FOR THE SECOND QUARTER 2024
Grainger (NYSE: GWW) reported Q2 2024 results with sales of $4.3 billion, up 3.1% (5.1% on a daily, organic constant currency basis). Adjusted diluted EPS reached $9.76, a 5.2% increase from Q2 2023. The company narrowed its 2024 guidance, projecting daily, organic constant currency sales growth of 4.0% to 6.0% and adjusted diluted EPS of $38.00 to $39.50.
Key highlights include:
- Reported operating margin of 15.1%, down 70 basis points
- Generated $411 million in operating cash flow
- Returned $345 million to shareholders through dividends and share repurchases
Grainger's performance remained resilient amid a slow but stable demand environment, with growth driven by increased volume across geographies and customer end markets.
Grainger (NYSE: GWW) ha riportato i risultati del Q2 2024 con vendite di 4,3 miliardi di dollari, in aumento del 3,1% (5,1% su base costante e organica nelle valute correnti). L'EPS diluito rettificato ha raggiunto 9,76 dollari, con un incremento del 5,2% rispetto al Q2 2023. L'azienda ha affinato la sua previsione per il 2024, prevedendo una crescita delle vendite organiche a valuta costante del 4,0% al 6,0% e un EPS diluito rettificato di 38,00-39,50 dollari.
I punti salienti includono:
- Un margine operativo riportato del 15,1%, in calo di 70 punti base
- Generato 411 milioni di dollari in flusso di cassa operativo
- Restituiti 345 milioni di dollari agli azionisti tramite dividendi e riacquisti di azioni
Le prestazioni di Grainger si sono mantenute resilienti in un ambiente di domanda lento ma stabile, con una crescita guidata da un aumento del volume in diverse aree geografiche e mercati di clienti.
Grainger (NYSE: GWW) reportó los resultados del Q2 2024 con ventas de 4.3 mil millones de dólares, un aumento del 3.1% (5.1% en una base diaria y orgánica de moneda constante). El EPS diluido ajustado alcanzó 9.76 dólares, un incremento del 5.2% en comparación con el Q2 2023. La empresa precisó su guía para 2024, proyectando un crecimiento de ventas de 4.0% a 6.0% y un EPS diluido ajustado de 38.00 a 39.50 dólares.
Los aspectos clave incluyen:
- Un margen operativo reportado del 15.1%, una disminución de 70 puntos base
- Generó 411 millones de dólares en flujo de caja operativo
- Devolvió 345 millones de dólares a los accionistas a través de dividendos y recompra de acciones
El desempeño de Grainger se mantuvo resistente en un entorno de demanda lento pero estable, con un crecimiento impulsado por un aumento en el volumen a través de geografías y mercados finales de clientes.
Grainger (NYSE: GWW)는 2024년 2분기 실적을 발표했으며, 43억 달러의 매출을 기록했습니다. 이는 3.1% 증가한 수치로, 일일 유기적 상수 통화 기준으로는 5.1% 증가한 것입니다. 조정된 희석 EPS는 9.76달러에 도달하여, 2023년 2분기 대비 5.2% 증가했습니다. 이 회사는 2024년 가이던스를 축소하였으며, 일일 유기적 상수 통화 기준으로 4.0%에서 6.0%의 매출 성장과 38.00달러에서 39.50달러의 조정된 희석 EPS를 예상하고 있습니다.
주요 내용은 다음과 같습니다:
- 보고된 운영 마진 15.1%, 70베이시스 포인트 감소
- 운영 현금 흐름 4억 1,100만 달러 생성
- 배당금 및 자사주 매입을 통해 주주에게 3억 4,500만 달러 반환
Grainger의 성과는 느리지만 안정적인 수요 환경 속에서도 회복력을 유지하며, 지리와 고객 최종시장 전반에서 증가한 물량에 의해 성장했습니다.
Grainger (NYSE: GWW) a rapporté les résultats du T2 2024 avec des ventes de 4,3 milliards de dollars, en hausse de 3,1% (5,1% sur une base quotidienne de devises organiques constantes). Le BPA dilué ajusté a atteint 9,76 dollars, soit une augmentation de 5,2% par rapport au T2 2023. L'entreprise a affiné ses prévisions pour 2024, projetant une croissance des ventes organiques en monnaie constante de 4,0% à 6,0% et un BPA dilué ajusté de 38,00 à 39,50 dollars.
Les points clés comprennent :
- Marge opérationnelle rapportée de 15,1%, en baisse de 70 points de base
- A généré 411 millions de dollars de flux de trésorerie d'exploitation
- A retourné 345 millions de dollars aux actionnaires par le biais de dividendes et de rachats d'actions
La performance de Grainger est restée résiliente dans un environnement de demande lent mais stable, avec une croissance alimentée par une augmentation des volumes à travers les géographies et les marchés finaux des clients.
Grainger (NYSE: GWW) hat die Q2 2024 Ergebnisse veröffentlicht, mit einem Umsatz von 4,3 Milliarden Dollar, was einem Anstieg von 3,1% entspricht (5,1% auf einer täglich organischen konstanten Währungsbasis). Der bereinigte verwässerte EPS erreichte 9,76 Dollar, ein Anstieg von 5,2% im Vergleich zum Q2 2023. Das Unternehmen hat seine Prognose für 2024 konkretisiert und rechnet mit einem täglichen organischen Umsatzwachstum von 4,0% bis 6,0% sowie einem bereinigten verwässerten EPS von 38,00 bis 39,50 Dollar.
Wichtige Highlights sind:
- Berichtete operative Marge von 15,1%, um 70 Basispunkte gesenkt
- Generierte 411 Millionen Dollar an operativem Cashflow
- Gibt 345 Millionen Dollar an die Aktionäre zurück durch Dividenden und Aktienrückkäufe
Die Leistungen von Grainger blieben in einem langsamen, aber stabilen Nachfragemarkt widerstandsfähig, wobei das Wachstum durch ein erhöhtes Volumen in verschiedenen geografischen Regionen und Endmärkten angetrieben wurde.
- Sales increased by 3.1% to $4.3 billion, with 5.1% growth on a daily, organic constant currency basis
- Adjusted diluted EPS grew by 5.2% to $9.76
- Generated $411 million in operating cash flow
- Returned $345 million to shareholders through dividends and share repurchases
- Narrowed 2024 guidance, indicating confidence in future performance
- Lower effective tax rate of 22.9% compared to 24.0% in Q2 2023
- Reported operating margin decreased by 70 basis points to 15.1%
- Adjusted operating margin declined by 40 basis points to 15.4%
- Gross profit margin remained flat at 39.3%, showing no improvement
- Endless Assortment segment experienced a 20 basis point decline in gross profit margin
Insights
Grainger's Q2 2024 results demonstrate resilience in a challenging economic environment. The company reported a 3.1% increase in sales to
The adjusted diluted EPS of
Grainger's narrowed 2024 guidance suggests cautious optimism. The company now expects daily, organic constant currency sales growth of
The company's strong cash flow generation and shareholder returns are positive signs. With
Overall, while facing headwinds, Grainger's performance suggests a stable business model with potential for growth as economic conditions improve.
Grainger's Q2 results offer valuable insights into the industrial supply market. The
The Endless Assortment segment's performance is particularly noteworthy. With
Grainger's stable gross profit margin of
The narrowed guidance range for 2024 reflects a cautious yet optimistic outlook. It suggests that while the industrial supply market is recovering, uncertainties remain. Companies in this sector will need to balance growth investments with operational efficiency to navigate the evolving landscape successfully.
Operational execution driving resilient performance;
Company narrows 2024 earnings outlook
Second Quarter Highlights
- Delivered sales of
$4.3 billion 3.1% , or5.1% on a daily, organic constant currency basis - Achieved reported operating margin of
15.1% , down 70 basis points, or15.4% on an adjusted basis, down 40 basis points - Generated diluted EPS of
$9.51 2.5% , or$9.76 5.2% - Produced
$411 million $345 million - Narrowing most 2024 total Company guidance ranges, including daily, organic constant currency sales growth of
4.0% to6.0% and adjusted diluted EPS of$38.00 $39.50
"I'm proud of our team for providing a flawless experience and creating tangible value for our customers. Amidst the backdrop of a slow, but generally stable demand environment, we focused on what matters and produced another quarter of solid results," said D.G. Macpherson, Chairman and CEO. "As we look to the second half of the year, I'm confident in our ability to execute well and deliver results for all stakeholders."
2024 Second Quarter Financial Summary
($ in millions, except per share amounts) | Q2 2024 | Q2 2023 | Q2'24 vs. Q2'23 Fav. / (Unfav.) | |||
Reported | Adjusted(1) | Reported | Adjusted | Reported | Adjusted | |
Net Sales | 3.1 % | 3.1 % | ||||
Gross Profit | 3.0 % | 3.0 % | ||||
Operating Earnings | (1.8) % | 0.6 % | ||||
Net Earnings Attributable to W.W. Grainger, Inc. | — % | 2.6 % | ||||
Diluted Earnings Per Share | 2.5 % | 5.2 % | ||||
Gross Profit Margin | 39.3 % | 39.3 % | 39.3 % | 39.3 % | 0 bps | 0 bps |
Operating Margin | 15.1 % | 15.4 % | 15.8 % | 15.8 % | (70) bps | (40) bps |
Effective Tax Rate | 22.9 % | 22.9 % | 24.0 % | 24.0 % | 110 bps | 110 bps |
(1) Results exclude restructuring costs incurred in the second quarter of 2024. See the supplemental information of this release | ||||||
Revenue
Sales in the quarter, on a reported and daily basis, increased
In the High-Touch Solutions - N.A. segment, sales, on a reported and daily basis, were up
Gross Profit Margin
Gross profit margin of
In the High-Touch Solutions - N.A. segment, 2024 second quarter gross profit margin of
Earnings
For the second quarter of 2024, total company reported operating earnings were
Diluted earnings per share for the second quarter of 2024 were
Tax Rate
The second quarter 2024 effective tax rate was
Cash Flow
During the second quarter of 2024, the Company generated
Guidance
The Company is providing the following updated total company 2024 guidance, including a narrowed earnings outlook.
Total Company(1) | Previous 2024 Guidance Range (as of April 25, 2024) | Updated 2024 Guidance Range (as of August 1, 2024) |
Net Sales | ||
Sales Growth | ||
Daily, organic constant currency sales growth | ||
Gross Profit Margin | ||
Operating Margin | ||
Diluted Earnings per Share | ||
Operating Cash Flow | ||
CapEx (cash basis) | ||
Share Buyback | ||
Effective Tax Rate | ~ | ~ |
Segment Operating Margin | ||
High-Touch Solutions - N.A. | ||
Endless Assortment | ||
(1) Guidance provided is on an adjusted basis. Daily, organic constant currency sales growth is adjusted for the impact of two | ||
Webcast
The Company will conduct a live conference call and webcast at 11:00 a.m. ET on Thursday, August 1, 2024, to discuss the second quarter results. The webcast will be hosted by D.G. Macpherson, Chairman and CEO, and Deidra Merriwether, Senior Vice President and CFO, and can be accessed at invest.grainger.com. For those unable to participate in the live event, a webcast replay will be available for 90 days at invest.grainger.com.
About Grainger
W.W. Grainger, Inc., is a leading broad line distributor with operations primarily in
Visit invest.grainger.com to view information about the Company, including a supplement regarding 2024 second quarter results. Additional Company information can be found on the Grainger Investor Relations website which includes the Company Snapshot and ESG report.
Safe Harbor Statement
All statements in this communication, other than those relating to historical facts, are "forward-looking statements." Forward-looking statements can generally be identified by their use of terms such as "believe," "could," "future," "guidance," "may," "predict," "prospects," "will," or "would," and similar terms and phrases, including references to assumptions. Forward-looking statements are not guarantees of future performance and are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such statements. Forward-looking statements include, but are not limited to, statements about future strategic plans and future financial and operating results. Important factors that could cause actual results to differ materially from those presented or implied in the forward-looking statements include, without limitation: inflation, higher product costs or other expenses, including operational and administrative expenses; the impact of macroeconomic pressures and geopolitical trends, changes and events; a major loss of customers; loss or disruption of sources of supply; changes in customer or product mix; increased competitive pricing pressures; changes in third party practices regarding digital advertising; failure to enter into or sustain contractual arrangements on a satisfactory basis with group purchasing organizations; failure to develop, manage or implement new technology initiatives or business strategies, including with respect to Grainger's eCommerce platforms; failure to adequately protect intellectual property or successfully defend against infringement claims; fluctuations or declines in Grainger's gross profit margin; Grainger's responses to market pressures; the outcome of pending and future litigation or governmental or regulatory proceedings, including with respect to wage and hour, anti-bribery and corruption, environmental, regulations related to advertising, marketing and the Internet, consumer protection, pricing (including disaster or emergency declaration pricing statutes), product liability, compliance or safety, trade and export compliance, general commercial disputes, or privacy and cybersecurity matters; investigations, inquiries, audits and changes in laws and regulations; failure to comply with laws, regulations and standards, including new or stricter environmental laws or regulations; government contract matters; the impact of any government shutdown; disruption or breaches of information technology or data security systems involving Grainger or third parties on which Grainger depends; general industry, economic, market or political conditions; general global economic conditions including tariffs and trade issues and policies; foreign currency exchange rate fluctuations; market volatility, including price and trading volume volatility or price declines of Grainger's common stock; commodity price volatility; facilities disruptions or shutdowns; higher fuel costs or disruptions in transportation services; outbreaks of pandemic disease or viral contagions; natural or human induced disasters, extreme weather and other catastrophes or conditions; effects of climate change; failure to execute on our efforts and programs related to environmental, social and governance matters; competition for, or failure to attract, retain, train, motivate and develop executives and key employees; loss of key members of management or key employees; loss of operational flexibility and potential for work stoppages or slowdowns if employees unionize or join a collective bargaining arrangement; changes in effective tax rates; changes in credit ratings or outlook; Grainger's incurrence of indebtedness or failure to comply with restrictions and obligations under its debt agreements and instruments; and other factors that can be found in our filings with the Securities and Exchange Commission, including our most recent periodic reports filed on Form 10-K and Form 10-Q, which are available on our Investor Relations website. Forward-looking statements are given only as of the date of this communication and we disclaim any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
W.W. Grainger, Inc. and Subsidiaries | |||||||
Three Months Ended | Six Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net sales | $ 4,312 | $ 4,182 | $ 8,547 | $ 8,273 | |||
Cost of goods sold | 2,618 | 2,538 | 5,185 | 4,995 | |||
Gross profit | 1,694 | 1,644 | 3,362 | 3,278 | |||
Selling, general and administrative expenses | 1,045 | 983 | 2,044 | 1,937 | |||
Operating earnings | 649 | 661 | 1,318 | 1,341 | |||
Other (income) expense: | |||||||
Interest expense – net | 20 | 24 | 41 | 48 | |||
Other – net | (7) | (8) | (14) | (14) | |||
Total other expense – net | 13 | 16 | 27 | 34 | |||
Earnings before income taxes | 636 | 645 | 1,291 | 1,307 | |||
Income tax provision | 146 | 155 | 304 | 309 | |||
Net earnings | 490 | 490 | 987 | 998 | |||
Less net earnings attributable to noncontrolling interest | 20 | 20 | 39 | 40 | |||
Net earnings attributable to W.W. Grainger, Inc. | $ 470 | $ 470 | $ 948 | $ 958 | |||
Earnings per share: | |||||||
Basic | $ 9.54 | $ 9.32 | $ 19.20 | $ 18.98 | |||
Diluted | $ 9.51 | $ 9.28 | $ 19.13 | $ 18.89 | |||
Weighted average number of shares outstanding: | |||||||
Basic | 49.0 | 50.1 | 49.1 | 50.2 | |||
Diluted | 49.2 | 50.3 | 49.3 | 50.4 | |||
W.W. Grainger, Inc. and Subsidiaries | |||
As of | |||
(Unaudited) | |||
Assets | June 30, 2024 | December 31, 2023 | |
Current assets | |||
Cash and cash equivalents | $ 769 | $ 660 | |
Accounts receivable (less allowances for credit | 2,344 | 2,192 | |
Inventories – net | 2,169 | 2,266 | |
Prepaid expenses and other current assets | 239 | 156 | |
Total current assets | 5,521 | 5,274 | |
Property, buildings and equipment – net | 1,667 | 1,658 | |
Goodwill | 360 | 370 | |
Intangibles – net | 237 | 234 | |
Operating lease right-of-use | 396 | 429 | |
Other assets | 171 | 182 | |
Total assets | $ 8,352 | $ 8,147 | |
Liabilities and Shareholders' Equity | |||
Current liabilities | |||
Current maturities | $ 505 | $ 34 | |
Trade accounts payable | 1,106 | 954 | |
Accrued compensation and benefits | 254 | 327 | |
Operating lease liability | 72 | 71 | |
Accrued expenses | 424 | 397 | |
Income taxes payable | 36 | 48 | |
Total current liabilities | 2,397 | 1,831 | |
Long-term debt | 1,783 | 2,266 | |
Long-term operating lease liability | 352 | 381 | |
Deferred income taxes and tax uncertainties | 117 | 104 | |
Other non-current liabilities | 116 | 124 | |
Shareholders' equity | 3,587 | 3,441 | |
Total liabilities and shareholders' equity | $ 8,352 | $ 8,147 | |
W.W. Grainger, Inc. and Subsidiaries | |||||||
Three Months Ended | Six Months Ended | ||||||
2024 | 2023(1) | 2024 | 2023(1) | ||||
Cash flows from operating activities: | |||||||
Net earnings | $ 490 | $ 490 | $ 987 | $ 998 | |||
Adjustments to reconcile net earnings to net cash | |||||||
Provision for credit losses | 6 | 5 | 12 | 9 | |||
Deferred income taxes and tax uncertainties | 17 | 7 | 15 | 17 | |||
Depreciation and amortization | 60 | 52 | 116 | 102 | |||
Non-cash lease expense | 20 | 21 | 41 | 38 | |||
Stock-based compensation | 23 | 19 | 34 | 31 | |||
Change in operating assets and liabilities: | |||||||
Accounts receivable | (42) | (141) | (205) | (303) | |||
Inventories | (5) | 24 | 71 | 28 | |||
Prepaid expenses and other assets | 43 | 19 | (42) | 93 | |||
Trade accounts payable | (18) | 94 | 184 | 147 | |||
Operating lease liabilities | (24) | (21) | (47) | (42) | |||
Accrued liabilities | 17 | 24 | (18) | (169) | |||
Income taxes – net | (169) | (130) | (62) | (28) | |||
Other non-current liabilities | (7) | (13) | (14) | (17) | |||
Net cash provided by operating activities | 411 | 450 | 1,072 | 904 | |||
Cash flows from investing activities: | |||||||
Capital expenditures | (76) | (95) | (195) | (193) | |||
Proceeds from sale of assets | — | — | 1 | 2 | |||
Other – net | 17 | — | 17 | — | |||
Net cash used in investing activities | (59) | (95) | (177) | (191) | |||
Cash flows from financing activities: | |||||||
Proceeds from debt | 2 | — | 3 | 6 | |||
Payments of debt | — | — | (17) | (18) | |||
Proceeds from stock options exercised | 1 | 5 | 10 | 28 | |||
Payments for employee taxes withheld from stock awards | (30) | (26) | (40) | (29) | |||
Purchases of treasury stock | (244) | (171) | (512) | (313) | |||
Cash dividends paid | (101) | (107) | (206) | (194) | |||
Other – net | — | 2 | (1) | (1) | |||
Net cash used in financing activities | (372) | (297) | (763) | (521) | |||
Exchange rate effect on cash and cash equivalents | (15) | (4) | (23) | (2) | |||
Net change in cash and cash equivalents | (35) | 54 | 109 | 190 | |||
Cash and cash equivalents at beginning of period | 804 | 461 | 660 | 325 | |||
Cash and cash equivalents at end of period | $ 769 | $ 515 | $ 769 | $ 515 | |||
(1) | Certain reclassifications have been made to prior year amounts to conform to the current year presentation of Grainger's Condensed |
SUPPLEMENTAL INFORMATION - RECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL MEASURES (Unaudited)
The Company supplements the reporting of financial information determined under
Basis of presentation
The Company has a controlling ownership interest in MonotaRO, which is part of our Endless Assortment segment. MonotaRO's results are fully consolidated, reflected in
Adjusted gross profit, adjusted SG&A, adjusted operating earnings, adjusted operating margin, adjusted net earnings, adjusted diluted EPS
Exclude certain non-recurring items, like restructuring charges, asset impairments, gains and losses associated with business divestitures and other non-recurring, infrequent or unusual gains and losses (together referred to as "non-GAAP adjustments"), from the Company's most directly comparable reported
Free cash flow (FCF)
Calculated using total cash provided by operating activities less capital expenditures. The Company believes the presentation of FCF allows investors to evaluate the capacity of the Company's operations to generate free cash flow.
Daily sales
Refers to sales for the period divided by the number of
Daily, constant currency sales
Refers to daily sales adjusted for changes in foreign currency exchange rates.
Daily, organic constant currency sales
Refers to daily sales excluding the sales of certain divested businesses in the comparable prior year period and changes in foreign currency exchange rates.
Foreign currency exchange
Calculated by dividing current period local currency daily sales by current period average exchange rate and subtracting the current period local currency daily sales divided by the prior period average exchange rate.
2023: Q1-64, Q2-64, Q3-63, Q4-63, FY-254
2024: Q1-64, Q2-64, Q3-64, Q4-64, FY-256
2025: Q1-63, Q2-64, Q3-64, Q4-64, FY-255
As non-GAAP financial measures are not standardized, it may not be possible to compare these measures with other companies' non-GAAP measures having the same or similar names. These non-GAAP measures should not be considered in isolation or as a substitute for reported results. These non-GAAP measures reflect an additional way of viewing aspects of operations that, when viewed with GAAP results, provide a more complete understanding of the business. This press release also includes certain non-GAAP forward-looking information. The Company believes that a quantitative reconciliation of such forward-looking information to the most comparable financial measure calculated and presented in accordance with GAAP cannot be made available without unreasonable efforts. A reconciliation of these non-GAAP financial measures would require the Company to predict the timing and likelihood of future restructurings, asset impairments, and other charges. Neither of these forward-looking measures, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of the most directly comparable forward-looking GAAP measures is not provided.
The reconciliations provided below reconciles GAAP financial measures to non-GAAP financial measures used in this release: daily sales; daily, organic constant currency sales; free cash flow; adjusted operating margin; and adjustments reflected in the consolidated statements of earnings.
Sales growth for the three months ended June 30, 2024 | |||
Q2 2024 | |||
Total Company | High-Touch Solutions - N.A. | Endless Assortment | |
Reported sales | 3.1 % | 3.1 % | 3.3 % |
Day impact | — % | — % | — % |
Daily sales(1) | 3.1 % | 3.1 % | 3.3 % |
Business divestiture(2) | 0.5 % | 0.6 % | — % |
Foreign currency exchange(3) | 1.5 % | — % | 8.4 % |
Daily, organic constant currency | 5.1 % | 3.7 % | 11.7 % |
(1) | Based on U.S. selling days, there were 64 selling days in Q2 2024 and Q2 2023. |
(2) | Reflects the divestiture of Grainger's subsidiary, E & R Industrial Sales, Inc., completed in the fourth quarter of 2023. |
(3) | Excludes the impact of year-over-year foreign currency exchange rate fluctuations. |
Free cash flow (FCF) for the three months ended June 30, 2024 | |
Q2 2024 | |
Net cash flows provided by operating activities | $ 411 |
Capital expenditures | (76) |
Free cash flow | $ 335 |
Income statement adjustments for the three months ended June 30, 2024 and 2023 | |||||||||||||
Q2 2024 | Reported | Adjusted(2) | Reported | Adjusted | |||||||||
Reported | Adjustment(1) | Adjusted | % of Net sales | Y/Y | |||||||||
Earnings reconciliation: | |||||||||||||
SG&A | $ (1,045) | $ 16 | $ (1,029) | 24.2 % | 23.9 % | 6.3 % | 4.7 % | ||||||
Operating earnings | 649 | 16 | 665 | 15.1 | 15.4 | (1.8) | 0.6 | ||||||
Other expense — net | (13) | — | (13) | 0.3 | 0.3 | (18.8) | (18.8) | ||||||
Income tax provision(3) | (146) | (4) | (150) | 3.4 | 3.4 | (5.8) | (3.2) | ||||||
Net earnings | 490 | 12 | 502 | 11.4 | 11.7 | — | 2.4 | ||||||
Noncontrolling | (20) | — | (20) | 0.5 | 0.5 | — | — | ||||||
Net earnings attributable | $ 470 | $ 12 | $ 482 | 10.9 % | 11.2 % | — % | 2.6 % | ||||||
Diluted earnings per | $ 9.51 | 0.25 | $ 9.76 | 2.5 % | 5.2 % | ||||||||
Q2 2023 | Reported | Adjusted(2) | Reported | Adjusted | |||||||||
Reported | Adjustment(1) | Adjusted | % of Net sales | Y/Y | |||||||||
Earnings reconciliation: | |||||||||||||
SG&A | $ (983) | $ — | $ (983) | 23.5 % | 23.5 % | 8.4 % | 8.4 % | ||||||
Operating earnings | 661 | — | 661 | 15.8 | 15.8 | 23.5 | 23.5 | ||||||
Other expense — net | (16) | — | (16) | 0.4 | 0.4 | (5.1) | (5.1) | ||||||
Income tax provision(3) | (155) | — | (155) | 3.7 | 3.7 | 20.1 | 20.1 | ||||||
Net earnings | 490 | — | 490 | 11.7 | 11.7 | 25.9 | 25.9 | ||||||
Noncontrolling | (20) | — | (20) | 0.5 | 0.5 | 12.1 | 12.1 | ||||||
Net earnings attributable | $ 470 | $ — | $ 470 | 11.2 % | 11.2 % | 26.5 % | 26.5 % | ||||||
Diluted earnings per | $ 9.28 | — | $ 9.28 | 29.1 % | 29.1 % | ||||||||
(1) | Reflects restructuring costs incurred in the second quarter of 2024 of |
(2) | Calculated on the basis of reported net sales for the second quarter of 2024 and 2023. |
(3) | Reflects a tax benefit related to the restructuring costs incurred in the second quarter of 2024. The Company's reported and adjusted effective tax rates |
(4) | The Company has a controlling ownership interest in MonotaRO, with the residual representing noncontrolling interest. |
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SOURCE W.W. Grainger, Inc.
FAQ
What were Grainger's (GWW) Q2 2024 sales and EPS results?
How did Grainger's (GWW) operating margin perform in Q2 2024?
What is Grainger's (GWW) updated 2024 guidance for sales growth and EPS?
How much cash did Grainger (GWW) return to shareholders in Q2 2024?
