W.W. Grainger, Inc. stock research
FY2023 Q3
W.W. Grainger (GWW) Gross Margin — Quarter Ended Sep 30, 2023
In the current quarter, revenue and gross profit were higher than the same quarter last year, while cost of revenue also increased. Gross margin improved compared to the prior year and remained stable relative to the immediately preceding quarter.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
In the current quarter, revenue and gross profit were higher than the same quarter last year, while cost of revenue also increased. Gross margin improved compared to the prior year and remained stable relative to the immediately preceding quarter.
- Year-over-year gross margin improvement is the most notable observable trend, with the current quarter's margin higher than the prior year's same quarter.
- Compared to the preceding quarter, gross margin was stable, while revenue was roughly similar and cost of revenue was slightly higher. Relative to the same quarter one year earlier, gross margin, revenue, and gross profit were all higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
39.3%
Gross profit
$1.7B
Revenue
$4.2B
Cost of revenue
$2.6B
Quarter-over-quarter change
+0.0 pts
Year-over-year change
+0.8 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% |
| Sep 30, 2023 | $4.2B | $1.7B | $2.6B | 39.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+0.0 pts
Year-over-year change
Sep 30, 2022
+0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Year-over-year gross margin improvement is the most notable observable trend, with the current quarter's margin higher than the prior year's same quarter.
Compared to the preceding quarter, gross margin was stable, while revenue was roughly similar and cost of revenue was slightly higher. Relative to the same quarter one year earlier, gross margin, revenue, and gross profit were all higher.
Monitor the trajectory of gross margin if revenue growth accelerates or decelerates.