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Mar 31, 2020

Grainger Q1 2020 Earnings Report

Grainger delivered robust top-line growth and maintained a strong balance sheet in Q1 2020.

Key Takeaways

Grainger reported a 7.2% increase in sales to $3.0 billion for Q1 2020. The company generated $159 million in reported operating earnings and $343 million in adjusted operating earnings. Operating cash flow was $244 million, and $178 million was returned to shareholders through dividends and share repurchases. Due to uncertainties surrounding the COVID-19 pandemic, Grainger suspended its 2020 guidance and paused share repurchases.

Sales increased by 7.2% to $3.0 billion, or 5.5% on a daily basis.

Reported operating earnings were $159 million, with adjusted operating earnings at $343 million.

Operating cash flow reached $244 million, and $178 million was returned to shareholders.

Company suspended 2020 guidance and paused share repurchases due to COVID-19 uncertainties.

Total Revenue
$3B
Previous year: $2.8B
+7.2%
EPS
$4.24
Previous year: $4.51
-6.0%
Daily Sales Growth
5.5%
Gross Profit Margin
37.4%
Previous year: 39.1%
-4.3%
Adjusted Gross Profit Margin
37.4%
Previous year: 39.2%
-4.6%
Gross Profit
$1.12B
Previous year: $1.1B
+2.4%
Cash and Equivalents
$1.49B
Previous year: $392M
+280.6%
Free Cash Flow
$244M
Previous year: $67M
+264.2%
Total Assets
$7.18B
Previous year: $6.01B
+19.3%

Grainger

Grainger

Forward Guidance

Given the uncertainty around the depth and duration of this pandemic, and the related economic response, Grainger is suspending their guidance for 2020.