W.W. Grainger, Inc. stock research
FY2024 Q1
W.W. Grainger (GWW) Gross Margin — Quarter Ended Mar 31, 2024
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin improved slightly from the immediately preceding quarter but was lower than the year-ago level.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin improved slightly from the immediately preceding quarter but was lower than the year-ago level.
- The sequential improvement in gross margin suggests a favorable relationship between revenue growth and cost of revenue changes in the near term. However, the year-over-year decline indicates a longer-term shift that warrants attention.
- Compared to the preceding quarter, gross margin was higher, driven by revenue growth that outpaced cost of revenue growth. Versus the same quarter one year earlier, gross margin was lower, as cost of revenue increased at a faster rate than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
39.4%
Gross profit
$1.7B
Revenue
$4.2B
Cost of revenue
$2.6B
Quarter-over-quarter change
+0.3 pts
Year-over-year change
-0.6 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $4.2B | $1.6B | $2.5B | 39.3% |
| Sep 30, 2023 | $4.2B | $1.7B | $2.6B | 39.3% |
| Dec 31, 2023 | $4.0B | $1.6B | $2.4B | 39.1% |
| Mar 31, 2024 | $4.2B | $1.7B | $2.6B | 39.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+0.3 pts
Year-over-year change
Mar 31, 2023
-0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin suggests a favorable relationship between revenue growth and cost of revenue changes in the near term. However, the year-over-year decline indicates a longer-term shift that warrants attention.
Compared to the preceding quarter, gross margin was higher, driven by revenue growth that outpaced cost of revenue growth. Versus the same quarter one year earlier, gross margin was lower, as cost of revenue increased at a faster rate than revenue.
Monitor the trend of cost of revenue relative to revenue to assess whether the year-over-year margin compression persists.