W.W. Grainger, Inc. stock research
FY2023 Q1
W.W. Grainger (GWW) Gross Margin — Quarter Ended Mar 31, 2023
In the current quarter, revenue and gross profit were higher than both the prior quarter and the same quarter last year, while cost of revenue also increased. Gross margin improved compared to both periods, reflecting a stronger relationship between gross profit and revenue.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
In the current quarter, revenue and gross profit were higher than both the prior quarter and the same quarter last year, while cost of revenue also increased. Gross margin improved compared to both periods, reflecting a stronger relationship between gross profit and revenue.
- The gross margin improvement was supported by gross profit increasing more than cost of revenue when compared to both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, with gross margin slightly improved. Compared to the same quarter one year earlier, all metrics were higher, and gross margin showed a more pronounced improvement.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
39.9%
Gross profit
$1.6B
Revenue
$4.1B
Cost of revenue
$2.5B
Quarter-over-quarter change
n/a
Year-over-year change
+2.0 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $4.1B | $1.6B | $2.5B | 39.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
+2.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was supported by gross profit increasing more than cost of revenue when compared to both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, with gross margin slightly improved. Compared to the same quarter one year earlier, all metrics were higher, and gross margin showed a more pronounced improvement.
Monitor the trend in cost of revenue relative to revenue, as changes in this relationship directly influence gross margin.