First Quarter Highlights –
*Delivered sales of $4.1 billion, up 12.2%, or 14.5% on a daily, constant currency basis
*Generated operating earnings of $680 million, up 27.4%, with operating margin of 16.6%, up 200 basis points
*Achieved diluted EPS of $9.61, an increase of 36.0%
*Produced $454 million in operating cash flow and returned $229 million to Grainger shareholders through dividends and share repurchases
*Recognized as one of the Fortune 100 Best Companies to Work For® for the second consecutive year
*Updating full year 2023 total Company guidance ranges, including daily sales growth of 7% to 11% and an increased diluted EPS range of $34.25 to $36.75
“The team continues to perform well amidst a resilient demand environment. Both segments delivered strong growth and expanded margins, while we continued to invest in our growth engines and provide exceptional customer service,” said D.G. Macpherson, Chairman and CEO. “Given the strong, profitable growth in the quarter, we are raising our earnings outlook for the full year 2023.”
Sales in the quarter, on a reported and daily basis, increased 12.2% as compared to the first quarter of 2022. Excluding the unfavorable foreign exchange impact of 2.3%, sales on a daily, constant currency basis were up 14.5% compared to the first quarter of 2022.
In the High-Touch Solutions N.A. segment, daily sales were up 14.5% compared to the first quarter of 2022, primarily due to strong price realization and continued volume growth. In the Endless Assortment segment, daily sales were up 3.8% or 14.0% on a daily, constant currency basis compared to the first quarter of 2022. Revenue growth was driven by core small business growth with new and repeat customers at Zoro U.S., as well as new customer acquisition, repeat business and enterprise customer growth at MonotaRO. Revenue growth in the first quarter at MonotaRO was negatively impacted by winter weather and a slower return to work after the New Year holiday.
Gross Profit Margin
Gross profit margin for the first quarter of 2023 was 39.9%, a 200 basis point increase compared to the first quarter of 2022. The increase was driven by favorability in both segments.
In the High-Touch Solutions N.A. segment, gross profit margin expanded by 195 basis points over the prior year first quarter primarily due to freight and supply chain efficiencies, as well as continued favorable product mix. In the Endless Assortment segment, gross profit margin expanded by 140 basis points versus the prior year first quarter driven by strong price realization, continued freight efficiencies and favorable business unit mix.
details at: https://invest.grainger.com/investor-news/news-details/2023/GRAINGER-REPORTS-RESULTS-FOR-THE-FIRST-QUARTER-2023/default.aspx