W.W. Grainger, Inc. stock research
FY2023 Q2
W.W. Grainger (GWW) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year. Gross margin improved relative to the year-ago period but weakened slightly from the preceding quarter.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year. Gross margin improved relative to the year-ago period but weakened slightly from the preceding quarter.
- Gross margin strengthened year over year, reflecting a greater increase in revenue relative to cost of revenue. The sequential decline suggests a shift in the cost revenue relationship from the prior quarter.
- Compared with the prior quarter, revenue rose while gross profit remained similar, leading to a lower gross margin. Compared with the same quarter a year ago, both revenue and gross profit increased, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
39.3%
Gross profit
$1.6B
Revenue
$4.2B
Cost of revenue
$2.5B
Quarter-over-quarter change
-0.6 pts
Year-over-year change
+1.8 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% |
| Jun 30, 2023 | $4.2B | $1.6B | $2.5B | 39.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
-0.6 pts
Year-over-year change
Jun 30, 2022
+1.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin strengthened year over year, reflecting a greater increase in revenue relative to cost of revenue. The sequential decline suggests a shift in the cost revenue relationship from the prior quarter.
Compared with the prior quarter, revenue rose while gross profit remained similar, leading to a lower gross margin. Compared with the same quarter a year ago, both revenue and gross profit increased, and gross margin improved.
Monitor the sequential gross margin decline to see if cost pressure persists.