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Dec 31, 2021

Grainger Q4 2021 Earnings Report

Grainger's Q4 2021 earnings surpassed expectations, driven by strong customer demand and effective execution of strategic initiatives.

Key Takeaways

Grainger reported a strong fourth quarter with sales of $3.4 billion, up 14.2% year-over-year, and adjusted EPS of $5.44, a 49% increase. The company's performance was fueled by robust customer demand and successful execution of strategic initiatives.

Sales increased by 14.2% to $3.4 billion, with a 16.9% increase on a daily, constant currency basis.

Gross margin expanded by 240 basis points to 37.3%.

Operating earnings reached $417 million, with an operating margin of 12.4%, up 305 basis points.

EPS increased by 74% to $5.44, and adjusted EPS increased by 49%.

Total Revenue
$3.36B
Previous year: $2.94B
+14.2%
EPS
$5.44
Previous year: $3.66
+48.6%
Operating Margin
12.4%
Gross Profit
$1.25B
Previous year: $1.03B
+22.0%
Cash and Equivalents
$241M
Previous year: $585M
-58.8%
Free Cash Flow
$155M
Previous year: $291M
-46.7%
Total Assets
$6.59B
Previous year: $6.3B
+4.7%

Grainger

Grainger

Forward Guidance

The following 2022 guidance is being provided: Total Company2022 Guidance RangeNet Sales$14.1 - 14.5 billionDaily growth7.5 - 10.5%Gross Profit Margin36.8 - 37.3%Operating Margin12.5 - 13.1%Earnings per Share$23.50 - $25.50Operating Cash Flow$1.1 - 1.3 billionCapEx (cash basis)$275 - 325 millionShare Buyback$600 - 800 millionTax Rate24.0 - 25.0%Segment Operating MarginHigh-Touch Solutions N.A.14.4 - 15.0%Endless Assortment7.5 - 8.2%