W.W. Grainger, Inc. stock research
FY2024 Q3
W.W. Grainger (GWW) Gross Margin — Quarter Ended Sep 30, 2024
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit remained relatively stable, while cost of revenue grew, leading to a slight narrowing of gross margin; the filing presents these trends without attributing them to specific factors.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit remained relatively stable, while cost of revenue grew, leading to a slight narrowing of gross margin; the filing presents these trends without attributing them to specific factors.
- The primary observable driver of the margin change was the increase in cost of revenue proportionally exceeding the increase in revenue.
- Compared to the immediately preceding quarter, revenue was higher and cost of revenue was higher, with gross margin slightly lower. Versus the same quarter one year earlier, the same pattern held.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
39.2%
Gross profit
$1.7B
Revenue
$4.4B
Cost of revenue
$2.7B
Quarter-over-quarter change
-0.1 pts
Year-over-year change
-0.1 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 |
|---|---|---|---|---|
| Dec 31, 2023 | $4.0B | $1.6B | $2.4B | 39.1% |
| Mar 31, 2024 | $4.2B | $1.7B | $2.6B | 39.4% |
| Jun 30, 2024 | $4.3B | $1.7B | $2.6B | 39.3% |
| Sep 30, 2024 | $4.4B | $1.7B | $2.7B | 39.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-0.1 pts
Year-over-year change
Sep 30, 2023
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of the margin change was the increase in cost of revenue proportionally exceeding the increase in revenue.
Compared to the immediately preceding quarter, revenue was higher and cost of revenue was higher, with gross margin slightly lower. Versus the same quarter one year earlier, the same pattern held.
Monitor the trend of cost of revenue relative to revenue to assess future margin performance.