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Jun 30, 2020

Grainger Q2 2020 Earnings Report

Grainger's Q2 2020 performance reflected significant share gains in the U.S. amidst a challenging market, driven by elevated pandemic product sales and substantial SG&A cost savings.

Key Takeaways

Grainger reported Q2 2020 sales of $2.8 billion, driven by significant share gains in the U.S. segment, despite an estimated 14-15% decline in the MRO market. The company generated $205 million in reported operating earnings and $315 million in adjusted operating earnings, achieving over $75 million in sequential SG&A cost savings and $232 million in operating cash flow.

Sales reached $2.8 billion with significant share gain in the U.S.

Reported operating earnings were $205 million, while adjusted operating earnings totaled $315 million.

Sequential SG&A cost savings exceeded $75 million.

Operating cash flow was $232 million, with $86 million returned to shareholders through dividends.

Total Revenue
$2.84B
Previous year: $2.89B
-1.9%
EPS
$3.75
Previous year: $4.64
-19.2%
Gross Profit
$1.02B
Previous year: $1.12B
-9.4%
Cash and Equivalents
$1.6B
Previous year: $315M
+408.9%
Free Cash Flow
$189M
Previous year: $276M
-31.5%
Total Assets
$7.19B
Previous year: $5.99B
+20.1%

Grainger

Grainger

Forward Guidance

Cannot provide a quantitative reconciliation of forward-looking information to the most comparable financial measure calculated and presented in accordance with GAAP without unreasonable efforts. A reconciliation of these non-GAAP financial measures would require the company to predict the timing and likelihood of future restructurings, asset impairments, and other charges. Neither of these forward-looking measures, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, the most directly comparable forward-looking GAAP measures are not provided.