Loading...
•
Jun 30, 2021
Grainger Q2 2021 Earnings Report
Reported strong revenue growth, performance aligned with expectations, gross profit affected by inventory adjustments due to easing mask mandates.
Key Takeaways
Grainger reported a strong second quarter with sales of $3.2 billion, up 13.1% compared to the second quarter of 2020. Both High-Touch Solutions N.A. and Endless Assortment segments showed robust top-line growth. However, gross profit was impacted by inventory adjustments related to pandemic products.
Sales reached $3.2 billion, a 13.1% increase compared to Q2 2020, and a 15.0% increase on an organic, daily, constant currency basis.
Generated $269 million in operating cash flow and returned $203 million to shareholders through dividends and share repurchases.
Experienced a 75 basis point decline in gross margin due to pandemic-related inventory adjustments.
Reported earnings per share increased 103% versus the second quarter of 2020.
Forward Guidance
The Company is maintaining guidance ranges provided in the previous quarter. Strong sales are expected to continue while gross profit margin, operating margin and EPS will likely face pressure from the incremental inventory adjustments and macroeconomic factors. Outside of revenue, Company results are expected to trend towards the low end of the guided ranges.
Positive Outlook
- Net Sales $12.7 - 13.0 billion
- Daily growth 8.5 - 11.0%
- Organic, daily growth 10.0 - 12.5%
- Gross Profit Margin 36.1 - 36.6%
- Operating Margin 11.8 - 12.4%
Challenges Ahead
- Earnings per Share (EPS) $19.00 - 20.50
- Tax Rate 25.0 - 26.0%
- gross profit margin will likely face pressure from the incremental inventory adjustments
- operating margin will likely face pressure from the incremental inventory adjustments
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...