On October 26, 2023, W.W. Grainger Inc (GWW, Financial) released its Q3 2023 earnings report. The company reported sales of $4.2 billion, up 6.7% or 8.7% on a daily, constant currency basis, and a diluted EPS of $9.43, up 14.1% compared to Q3 2022.
Financial Performance
The company's net sales for Q3 2023 were $4.2 billion, a 6.7% increase from Q3 2022. Gross profit for the quarter was $1.65 billion, up 9.1% from the same period last year. Operating earnings were $667 million, a 10.7% increase, and net earnings attributable to W.W. Grainger Inc were $476 million, an 11.9% increase. The diluted earnings per share for the quarter were $9.43, a 14.1% increase from Q3 2022.
Segment Performance
In the High-Touch Solutions - N.A. segment, daily sales were up 8.7% compared to Q3 2022, primarily due to solid volume growth in all geographies. In the Endless Assortment segment, daily sales were up 6.0%, or 9.2% on a daily, constant currency basis, compared to Q3 2022.
Financial Outlook
The company has narrowed its full-year 2023 total company guidance, including an updated outlook for daily sales growth between 8.5% to 9.5% and diluted EPS of $36.00 to $36.60.
Cash Flow and Shareholder Returns
During Q3 2023, the company generated $523 million of cash flow from operating activities, aided by higher net earnings and favorable working capital. The company invested $125 million in capital expenditures, resulting in free cash flow of $398 million. During the quarter, the company returned $287 million to Grainger shareholders through dividends and share repurchases.
Company Commentary
"The team continues to drive value for customers and serve them well amidst a reasonably steady demand environment. By executing on our strategy, we saw additional share gain and continued profitability leading to another quarter of strong performance,” said D.G. Macpherson, Chairman and CEO. “As we look to the final quarter of 2023, we remain focused on providing a flawless experience for customers and positioning the business for long-term, profitable growth.”
Explore the complete 8-K earnings release (here) from W.W. Grainger Inc for further details.
