Workflow
Grainger(GWW) - 2024 Q1 - Quarterly Results
GWWGrainger(GWW)2024-04-25 12:22

Sales Performance - Q1 2024 sales reached 4.2billion,up3.54.2 billion, up 3.5% YoY, or 4.9% on a daily, organic constant currency basis[3][4] - High-Touch Solutions - N.A. segment daily sales grew 3.4% YoY, while Endless Assortment segment daily sales grew 3.7% YoY (10.0% on a daily, constant currency basis)[7] - Total company reported sales growth for Q1 2024 was 3.5%, with High-Touch Solutions - N.A. at 3.4% and Endless Assortment at 3.7%[38] - Daily, organic constant currency sales growth for Q1 2024 was 4.9% for the total company, 3.8% for High-Touch Solutions - N.A., and 10.0% for Endless Assortment[38] - Foreign currency exchange positively impacted sales growth by 0.9% for the total company and 6.3% for Endless Assortment in Q1 2024[38] Earnings and Profitability - Diluted EPS for Q1 2024 was 9.62, a 0.1% increase compared to Q1 2023[3][4] - Operating margin for Q1 2024 was 15.8%, down 80 basis points YoY[4][5] - Gross profit margin for Q1 2024 was 39.4%, a 50-basis point decline YoY[8] - Net earnings for Q1 2024 were 497million,comparedto497 million, compared to 508 million in Q1 2023[27] - Effective tax rate for Q1 2024 was 24.2%, up from 23.3% in Q1 2023 due to decreased stock compensation tax benefit[12] Cash Flow and Capital Allocation - Operating cash flow for Q1 2024 was 661million,withfreecashflowof661 million, with free cash flow of 542 million after 119millionincapitalexpenditures[13]−Freecashflow(FCF)forQ12024was119 million in capital expenditures[13] - Free cash flow (FCF) for Q1 2024 was 542 million, calculated as 661millionfromoperatingactivitiesminus661 million from operating activities minus 119 million in capital expenditures[39] - Net cash provided by operating activities increased to 661millioninQ12024from661 million in Q1 2024 from 454 million in Q1 2023[27] - Capital expenditures for Q1 2024 were 119million,upfrom119 million, up from 98 million in Q1 2023[27] - Company returned 360milliontoshareholdersthroughdividendsandsharerepurchasesinQ12024[4][13]−PurchasesoftreasurystockinQ12024totaled360 million to shareholders through dividends and share repurchases in Q1 2024[4][13] - Purchases of treasury stock in Q1 2024 totaled 268 million, compared to 142millioninQ12023[27]−CashdividendspaidinQ12024were142 million in Q1 2023[27] - Cash dividends paid in Q1 2024 were 105 million, up from 87millioninQ12023[27]−CashandcashequivalentsattheendofQ12024were87 million in Q1 2023[27] - Cash and cash equivalents at the end of Q1 2024 were 804 million, compared to 461millionattheendofQ12023[27]GuidanceandOutlook−ReaffirmedFY2024guidance:netsalesof461 million at the end of Q1 2023[27] Guidance and Outlook - Reaffirmed FY 2024 guidance: net sales of 17.2 - 17.7billion,dilutedEPSof17.7 billion, diluted EPS of 38.00 - 40.50,andoperatingcashflowof40.50, and operating cash flow of 1.9 - $2.1 billion[14][15] - High-Touch Solutions - N.A. segment operating margin guidance for FY 2024 is 17.4% - 17.9%, while Endless Assortment segment is 7.3% - 7.8%[15]