Grainger’s Q2 Sales Dip 2% as MRO Market Suffers

Industrial distributor estimates that MRO market declined 14% to 15% during the quarter even as company gained share in the U.S.
Grainger DC, Minooka, Illinois

Grainger (NYSE: GWW), Chicago, on Thursday reported second-quarter sales of $2.84 billion, down 2% compared to the year-ago quarter. The company said it gained significant share in the U.S. even as the MRO market declined 14% to 15% during the period.

Grainger’s profit decreased 56% to $114 million, while diluted earnings per share of $2.10 were down from $4.67 in 2Q 2019 and missed analysts’ estimates by 86 cents.

“We remain grounded in our priorities of serving our customers well, helping our customers and team members focus on safety and well-being, and maintaining a strong financial position even in times like these,” said DG Macpherson, chairman and CEO. “During the second quarter, Grainger performed well. We gained significant share in a down market, fueled by elevated levels of pandemic product sales and improving trends in non-pandemic product sales throughout the quarter. On the cost side, we achieved significant leverage and generated over $75 million of sequential cost reductions contributing to strong operating cash flow and allowing continued investment in the business. The work our team members are doing resonates with our customers and communities and positions Grainger to support our customers and deliver results even in this uncertain time.”

For the first six months, Grainger’s sales increased 2.6% to $5.84 billion while its profit decreased 44% to $287 million.

Look for more analysis on Grainger’s quarterly performance on the MDM blog Friday.

Related Posts

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.