W.W. Grainger, Inc. (GWW) SEC Filings & Earnings Calls

Foreign Currency Exchange Headwind

“Sales growth was partially offset by unfavorable currency exchange of 4% due to changes in the exchange rate between the U.S. dollar and the Japanese yen.” · word for word

Business Divestiture Impact

“Excludes the net sales results of the divested Cromwell business and closed Zoro U.K. business, announced in the third quarter of 2025 and completed in the fourth quarter of 2025.” · word for word

Geopolitical uncertainty could impact demand

“Despite ongoing geopolitical uncertainty, we executed well” · word for word

Higher effective tax rate due to decreased tax credits and new legislation

“The increase in the effective tax rate was primarily due to decreased tax credit activity in the current year period and the impact of tax legislation effective in 2026.” · word for word

Tariff cost pass-through may face limits if competition intensifies

“tariff costs are passed” · word for word

CFO transition may cause short-term uncertainty.

“CFO resignation effective September 4, 2026.”

Tariff and geopolitical uncertainty could impact demand and costs.

“Despite ongoing uncertainty with tariffs and the broader geopolitical climate” · word for word

Higher effective tax rate due to decreased tax credit activity and new tax legislation.

“The increase in the effective tax rate was primarily due to decreased tax credit activity in the current year period and the impact of tax legislation effective in 2026.” · word for word

Capital expenditure increase

“Net cash used in investing activities was $178 million and $125 million for the three months ended March 31, 2026 and 2025, respectively. The increase was due to capital expenditures primarily driven by continued MonotaRO supply chain investments in the first three months of 2026.” · word for word

Inflation and cost pass-through risk

“Inflation could cause Grainger's operating and administrative expenses to grow more rapidly than net sales, which could result in lower gross margins and lower net earnings.” · word for word

Supply chain disruption risk

“Disruptions in Grainger’s supply chain could result in an adverse impact on results of operations.” · word for word

Economic sensitivity of customers

“Weakness in the economy, market trends and other conditions affecting the profitability and financial stability of Grainger’s customers could negatively impact Grainger’s sales growth and results of operations.” · word for word

Commodity price volatility

“Volatility in commodity prices may adversely affect gross margins.” · word for word

Foreign currency fluctuation

“Fluctuations in foreign currency could have an effect on reported results of operations.” · word for word

Tariff-related inflation and LIFO headwinds pressuring gross margin.

“tariff-related inflation which caused unfavorable price / cost timing and last-in, first-out (LIFO) inventory valuation headwinds” · word for word

Unforeseen healthcare costs and slower sales growth in High-Touch Solutions segment pressuring operating margin.

“increased expense, including unforeseen healthcare costs, and slower sales growth in the High-Touch Solutions - N.A. segment” · word for word

U.K. market exit and asset impairment

“Reflects the asset impairment loss and other expenses recorded in the third quarter of 2025 related to the Company's intention to exit the U.K. market, including the planned divestiture of the Cromwell business.” · word for word

Gross margin compression

“Gross profit margin decreased from 39.2% to 38.6% YoY.”

Tariff-related inflation causing price/cost timing and LIFO headwinds pressuring gross margin

“tariff-related inflation caused unfavorable price / cost timing and last-in, first-out (LIFO) inventory valuation headwinds” · word for word

Intended exit from UK market with Cromwell divestiture resulted in asset impairment loss

“asset impairment loss and other expenses recorded in the third quarter of 2025 related to the Company’s intention to exit the U.K. market, including the planned divestiture of the Cromwell business” · word for word