W.W. Grainger reported solid second-quarter results on Friday, with sales climbing 5.6% year over year to $4.55 billion, fueled by robust performance in its online-focused Endless Assortment business. Net earnings rose 2.6% to $482 million.
For the first half of 2025, Grainger generated $8.94 billion in sales, up 5.7% from the same period last year. Net income rose 4.3% to $952 million, compared to $913 million in the first six months of 2024.
“We delivered solid results despite macro uncertainty and tariff-related impacts,” said Chairman and CEO D.G. Macpherson. “Strong customer relationships and continued momentum in our Endless Assortment business helped offset some margin pressure.”
Sales in the Endless Assortment segment—home to digital-first brands like Zoro and MonotaRO—jumped 19.7% year over year. In contrast, sales in the High-Touch Solutions segment, which includes the company’s traditional North American branch network, rose a more modest 2.5%, impacted by inflation tied to tariffs and inventory valuation adjustments.
Gross profit margin fell to 38.5% from 39.3% a year earlier, as higher costs weighed on product margins, particularly in the U.S. Operating margin slipped to 14.9% from 15.1% in the year-ago quarter.
Still, Grainger generated $377 million in operating cash flow during the
The company revised its full-year guidance to reflect tariff headwinds but raised its full-year sales outlook to between $17.9 billion and $18.2 billion, representing projected growth of 4.4% to 5.9%.
Despite the cost pressures, Macpherson said the company remains focused on long-term growth, customer service, and operational efficiency.
“We’re well-positioned to continue creating value for all stakeholders,” he said.
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