Grainger Q4 2022 Earnings Report
Key Takeaways
Grainger reported strong Q4 2022 results with sales of $3.8 billion, a 13.2% increase, and diluted EPS of $7.54, up 38.6%. The company's performance was driven by focused execution of its long-term strategy and strong demand in both High-Touch Solutions and Endless Assortment segments.
Sales increased by 13.2% to $3.8 billion, or 17.2% on a daily, constant currency basis.
Operating margin was 14.3%, up 190 basis points, or 13.8% on an adjusted basis, up 135 basis points.
Diluted EPS reached $7.54, up 38.6%, or $7.14 on an adjusted basis, up 31.3%.
The company issued 2023 guidance, including 7% to 11% sales growth.
Grainger
Grainger
Forward Guidance
The Company is providing the following outlook for 2023: Total Company(1)2023 Guidance RangeNet Sales$16.2 - $16.8 billionSales growth6.6% - 10.6%Daily sales growth7.0% - 11.0%Gross Profit Margin38.1% - 38.3%Operating Margin14.4% - 14.9%Diluted Earnings per Share$32.00 - $34.50Operating Cash Flow$1.45 - $1.65 billionCapEx (cash basis)$450 - $525 millionShare Buyback$550 - $700 millionTax Rate~25.0%Segment Operating MarginHigh-Touch Solutions N.A.16.3% - 16.8%Endless Assortment8.6% - 9.0% Total Company(1) (1)Guidance provided is on an adjusted basis. Daily sales growth adjusted for the impact of one less selling day in 2023 as compared to 2022. The Company does not reconcile forward-looking non-GAAP financial measures. For further details see the supplemental information of this release.