Summary
W.W. Grainger, Inc. (GWW) reported its third-quarter and year-to-date results for the period ending September 29, 2025. While total net sales saw a modest increase of 6.1% for the quarter and 4.5% for the nine months, driven by growth in both the High-Touch Solutions N.A. and Endless Assortment segments, overall profitability was significantly impacted by a substantial asset impairment loss related to the decision to exit the U.K. market. The company incurred an $186 million impairment loss for its Cromwell business in the U.K. and plans to close Zoro U.K., leading to a reported operating loss in the "Other" segment for the quarter. Consequently, net earnings attributable to W.W. Grainger, Inc. decreased by 39.5% for the quarter and 12.5% for the nine months. Despite these challenges, the company's core North American operations, particularly the Endless Assortment segment, demonstrated strong growth and improved operating margins, suggesting resilience in its primary markets.
Financial Highlights
50 data points| Revenue | $4.66B |
| Cost of Revenue | $2.86B |
| Gross Profit | $1.80B |
| SG&A Expenses | $1.29B |
| Operating Income | $511.00M |
| Net Income | $294.00M |
| EPS (Basic) | $6.13 |
| EPS (Diluted) | $6.12 |
| Shares Outstanding (Basic) | 47.80M |
| Shares Outstanding (Diluted) | 47.90M |
Key Highlights
- 1Net sales increased by 6.1% to $4.66 billion for the third quarter and by 4.5% to $13.52 billion for the first nine months, indicating continued top-line growth.
- 2A significant $186 million asset impairment loss was recognized due to the decision to exit the U.K. market (Cromwell business), negatively impacting operating earnings and net income.
- 3Operating earnings for the third quarter decreased by 25.5% year-over-year, largely due to the U.K. exit-related charges.
- 4The Endless Assortment segment showed robust performance, with net sales up 18.2% in the third quarter and gross profit margin expanding by 60 basis points.
- 5The High-Touch Solutions N.A. segment experienced more moderate growth, with net sales up 3.4% in the quarter, but saw a slight decrease in gross profit margin due to pricing and LIFO inventory impacts.
- 6Cash flow from operations remained strong at $1.62 billion for the nine months, although down from the prior year, while investing activities saw increased outflows due to capital expenditures for supply chain investments.
- 7The company declared a quarterly dividend of $2.26 per share, demonstrating continued commitment to returning capital to shareholders.