MRO and other industrial supplies distributor Grainger reported its 2024 third quarter financial results on Oct. 31, showing another solid increase in sales.

Chicago-based Grainger posted 3Q total sales of $4.4 billion, up 4.3% year-over-year, with daily, organic sales up 4.0%.

Here’s how the overall and daily, organic sales figures have looked since the start of 2023:

It is important to note the context that most of 2023’s sales figures had the tailwind benefits of inflationary impacts, especially in 1Q and 2Q.

Grainger’s 3Q24 gross margin was 39.2%, down 10 basis points compared to the third quarter of 2023 and flat from 2Q24. The company’s 3Q24 operating profit of $686 million was up 2.8% year-over-year, with an operating margin of 15.6%, down 40 bps.

Grainger has a 3Q24 net profit of $486 million, up 2.1% year-over-year.

“From helping customers respond to natural disasters to supporting their safety needs, the team remains sharply focused on providing a flawless experience,” Grainger Chairman and CEO D.G Macpherson said in the company’s financial release. “As a result, throughout the third quarter, our customer relationships grew and results remained solid amidst a slow, but steady demand market. As we close out 2024, we are confident in our ability to execute well, meet our goals and drive results for all stakeholders.”

Grainger frequently appeared on MDM’s 2024 Top Distributors Lists, led by its No. 1 ranking in Industrial Supplies, MRO and Safety.

Business Unit Performance

Performance within Grainger’s two business units in 3Q24:

• High-Touch Solutions: 3Q daily sales were up 3.3% year-over-year, with growth driven by all geographies and included broad-based gains across most customer end markets. Gross profit margin was 41.6%, down 10 bps compared to the year prior.
• Endless Assortment: 3Q daily sales were up 8.1%, or 11.5% on a daily basis. Grainger said revenue growth in the segment was driven by core B2B customers at Zoro and strong performance across MonotaRO and with Enterprise customers. Profit margin declines by 10 bps from the third quarter of 2023, driven by product and customer mix headwinds.

2024 Outlook

In updating its 2024 full-year outlook, Grainger narrowed its sales guidance range from the $17.0-17.3 billion in 2Q report to $17.1-17.3 billion. The company now expects daily, organic sales growth of 4.5%-5.25%, narrowed from 4.0%-6.0% in the previous outlook.

Grainger forecasts full-year 2024 gross margin of 39.3% – 39.4% and operating margin of 15.4% – 15.6% — both slightly down from the previous outlook.

On Oct. 1, Grainger broke ground on a massive new distribution center near Houston.