(Reuters) -WW Grainger on Friday beat third-quarter profit estimates, helped by higher pricing for its industrial tools and equipment and strong sales from its online businesses.
The toolmaker's largest segment, High Touch Solutions, saw a 3.4% sales increase, driven by pricing gains as tariff-related costs were passed on to North American businesses. This segment provides pumps, plumbing equipment, metalworking and hand tools.
Grainger also benefitted from an 18.2% rise in its Endless Assortment segment, driven by its e-commerce platforms Zoro and MonotaRO, catering to small businesses in the U.S. and Japan, respectively.
The Lake Forest, Illinois-based company narrowed its 2025 earnings forecast while maintaining a midpoint of roughly $39.38 per share.
The annual gross profit margin outlook, however, was raised, with the new range set at 38.9% to 39.1%, compared to the earlier forecast of 38.6% to 38.9%.
Grainger posted quarterly adjusted profit of $10.21 per share, beating expectations of $9.95, according to data compiled by LSEG.
Total revenue for the quarter ended September 30 was $4.66 billion, up 6.1% from a year earlier.
(Reporting by Aishwarya Jain in Bengaluru; Editing by Vijay Kishore)
W.W Grainger, Inc. specializes in professional distribution of industrial supplies and equipment. The group supplies businesses and institutions with maintenance equipment, industrial safety supplies, service and maintenance parts, lighting products, ventilation equipment, pumps and plumbing products, etc. Net sales break down by activity as follows:
- value-added distribution of maintenance, repair and operating equipment (79,9%): business conducted in North America for medium and large companies and customers with complex supply chain management needs;
- online distribution (20,1%): distribution of a wide range of products to small and medium-sized businesses, as well as to private individuals. This activity is carried out mainly in the United States and Japan.
At the end of 2024, products are marketed through a network of 328 branches (of which 245 in the United States, 33 in the United Kingdom, 32 in Canada, 15 in Mexico and 3 in Puerto Rico), 35 distribution centers (of which 21 in the United States, 5 in Canada, 4 in Japan, 2 in Mexico, 1 in the United Kingdom and 1 in Puerto Rico) through catalogues and the Internet.
Net sales are distributed geographically as follows: the United States (81.2%), Japan (11), Canada (3.9%) and other (3.9%).
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