Earnings call transcript Q2 2023

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Operator

Good morning and welcome to the W.W. Grainger Second Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to our host, Kyle Bland, Vice President of Investor Relations. Thank you.

begin. may You

Kyle Bland

to me Welcome Dee quarter earnings XXXX Senior Good D.G. Grainger’s Macpherson, With CFO. are President and Chairman call. Vice morning. and second and Merriwether, CEO

today and a filings. may may As found in Reconciliations materially result measures uncertainties, of website. risks a the with QX as on of of their in including some our in those differ include are statements. detailed the Actual reminder, financial forward-looking measures results end available tables various non-GAAP both and of comments any our this release, GAAP presentation our earnings are of the at corresponding which IR our SEC

our This for adjusted results, quarter basis XXXX consistent periods reported morning’s focus which presented. and call all on second on will are both a

also in arrears. follows which Japanese was to remember MonotaRO. We results GAAP results GAAP, reported in our related X and Please and a company will that share is public U.S. differs from MonotaRO month

numbers somewhat As result, from will statements. the a public MonotaRO’s disclosed differ

I to it over D.G. turn Now, will

D.G. Macpherson

financials Good for to I’ll of detail. joining overview an performance us. second Kyle. through morning you quarter provide walk the then to our pass and Dee and it Today, Thanks, in thank

operations. and areas important ESG, four meaningful indications have long show we out both progress. like making Grainger report XXXX, grounded near-term in services operations. Internally, out and been our in we what Early with would to the highlight Everything encourage do report. recently that leader I is As they in our parts Grainger service. to in we ESG released I’d our today of way check graingeresg.com. our products need providing own Grainger full our has we you work framework, to through focus stay on and culture most: the focused both are the our all for continues are ESG matters of customers that our customers through laid context which exceptional Edge a at

will our commonplace with few our sustainability solutions. has well footprint than customer we business revenue around years. for preferred and In to last environmentally customers was over positioned in and conversations help start become space. this Customer more XXXX, environmental U.S. their the steadily billion have I are products increased in High-Touch $X

On group operator our achieve an reduce how the product will goals right side, see opportunity a resilience are We cost. and we use, with that fossil our you energy search offerings. in recently service sustainability was tying its of fuel-based container helping to enhance worked terminal to and large customers by their offset

services avoid our partner operations. This for sustainable safe, service partners everyday, one is ensure with partner this solar offering, example, they run and go-to miles next XX just them network of we reliable will X,XXX connecting customers Through car. driven a our more will XXX install years, sustainability of the approximately help panels These X them emissions like COX over and we provider but be of by to customer to equivalent tons and purchased the can need million the the panels. than everything helping our

progress and Second, program. this champion billion as disabilities with more products than Last people partnerships this year, base important underrepresented spent supplier women, expand to Grainger in $X businesses our continue LGBTQ+ and make including an we in from by plays space. groups, through supplier role diverse diversity. we minorities, owned on further

a XXXX XXXX, goal emissions. XX%, our of nearing Scope we continuous Since XX% emissions our energy finally, global and Third, is and diversity, equity absolute a And inclusion. reduction. X Scope and reduced X DEI by have journey.

no Each impact priorities status. us both to addition Work part veteran work to are Women a for by to to and members or our all Fortune’s our Grainger Best an in greater of one helping for focus their near-term to named our actions support been celebrate ethnicity, other these of team have to proud make and for recognized scale orientation, important are being We age, are Places organizations and ESG of matter disability customers. our

Our Grainger we own Edge and toward to continue as as customers the with our will impacting follow we team progress positively the they to goals, ESG partner initiatives communities make work their achieve our near-term where together operate.

review highlights quarter. for the Now to

supporting performance our can we you delivered we up well of As show strong quarter to as customers. again a see, continue in

are As decelerating, reasonably expected, but demand rates steady. remains year-over-year growth

For basis segments, Solutions positive points segment, sales X% market by by Results growth within U.S. of XXX in the basis. which daily again approximately in XX.X% currency the quarter, were daily notably with both broader the outpaced most finished performance constant driven we or on High-Touch a the MRO

operating substantial increase delivered strong points XX.X%, and top margin driven growth robust basis operating ROIC and supply the our line year freight this XX%. flow over cash performance as an chain prior we gross company of EPS Total improved primarily continued Combine over efficiencies and and container was XXX costs. with was growth, continued by margin of lower

to combined Grainger through the dividends returned quarter shareholders and $XXX million in also We a share repurchases.

that we results, the and Assortment to to In us advance seller and to repeat strategic BXB increasing our make continue against business core softening demand customers Zoro But progress the our High-Touch rates marketing, purchase Endless at providing with enterprise MonotaRO. proprietary growth U.S. advancing and and model, service is team on seeing engines information focus in management are the initiatives. customer in merchandising while at great these customers some with product the macro-related overall, reliable fuel growing our The allow continues U.S. investments systems we Alongside

to Northwest few XXXX. Lastly, our outside center support foot we Portland, which a Oregon, Pacific in plans to will is weeks new distribution of construct across announced our XXX,XXX customers the ago, expected a open square and

to demand States. leading us service investments we extend which up on centers addition, the North each allow quarters. implementing us keep over our Texas United best-in-class distribution strong few three In which deliver industry enable complete focused are open customer capabilities, are slated a Pennsylvania, bulk-style next to experience Carolina, and next-day in smaller fulfillment with to the across These and

am focused of what pleased market we midpoint on I With we through reasonably full the progress have made matters, remain guidance. first and demand are the as raising XXXX. and we our remains of As execution year our steady, half EPS strong the revenue with XXXX

will over through Dee to pass I now it details. to the go

Dee Merriwether

XX.X% total with currency daily including for Starting the D.G. company, basis. a growth Thanks, constant on results see Slide you daily high-level X can strong of sales the

to growth year. comparison, remained on dollars daily compared Although a inflation prior cools decelerated year a QX strong deliver as tougher great year-over-year as sales we are rates track lap to we and and

segment. margin the as further total, both diluted of gross leverage up aided points basis second was Solutions operating the margins company XXX High-Touch SG&A in Total EPS in quarter delivered XX% North XXXX. $X.XX, quarter American by expanded the we versus which of up segments In in was were

details, for second fueled segment all continued to level with see our into geographies. sales within growth Diving up the by we in X.X%, strong results segment, revenue quarter, daily High-Touch

our Although healthy rates have slowed the as lap and with growth quarter. growth inflation, in year-over-year we line remains generally price for prior was expectations year volume

nearly we U.S., end In in customer positive growth all continue the see segments. to

softness, services. including of does growth and decelerating this include However, in pockets manufacturing commercial

by is growth customer base, in such our government and areas other strong as countered this given diversified However, healthcare.

about local we daily sales and economy seeing the in stable with strong currency. X% Canadian are results up days Canada, In local and remains

and returned levels. margin-accretive margin service higher this chain and XX.X%, supply current products year. quarter high, the For quarter. This basis and with of Product fuel also in and at Product tailwinds to improved in GP favorable pre-pandemic segment, versus container availability a and points shipments availability remained finished as fewer fuel services. significant year the XXX primarily the product the distance in packages up one levels prior coupled resulting shorter is driving mix due was mix to lower rates near

a for non-recurring in negative benefit slightly supplier basis quarter. was XX rebate adjusting the spread recognized after point Price/cost – non-recurring

As expected, as remainder we of continue year unwind in began to this target. quarter neutrality towards to our for expect captured the turn the we the the in and favorability second long-term XXXX

generation the basis in this another favorability North points segment. and year-over-year as the fell operating more the and the GP strong demand we improvement marketing. revenue Overall, High-Touch to margin of continued was saw American investments bottom for growth quarter than offset At line, headcount XXX

MRO basis points XXX market XX, Slide estimate at on X.X% roughly we quarter. outgrowth the outgrowth between grew and achieved U.S. in market the Looking of that we indicating X%,

by is XXX points this our to sequential a we market basis prior a to remains performance very strong Although slowdown comped and XXX from cycles. year the outgrow annual economic through target QX, above quarter

We in again our target on achieving way that are well towards XXXX.

MonotaRO execute and grow depreciated to and constant Endless well achieved a users a customer continues year-over-year increased currency local X.X%, our base. Zoro revenue or the At currency. to U.S. X.X% the slower comparison, customers. is solid Japanese growth demand Zoro, while sales we year a registered tougher Assortment the basis, on business impact enterprise growth are local MonotaRO reflects Moving was growth they partially prior up in XX.X% while slowing At daily which days, adjusts yen. XX.X% seeing for across driving segment, their increase level, as of

mid-teens quarter non-core of in business, revenue. and QX, which core in in slowdown majority headwind we the have to BXC makes remained down Zoro’s year-over-year. Similar Zoro’s a up a was seen a the business BXB Further,

as these are given core Zoro’s market still While which factors growing as single-digits we this smaller well to demand end high in tilt their more environment. struggling to are be with mix businesses, in sized seem the customers, impacting macro-related

expect remainder persist to of these year. the headwinds We of both the for

has our years registered pandemic. served increased the non-core customers to Zoro delivered added users both back, assortment, we great the X during last well over and have core Stepping SKUs results as and

drive next one-stop complex This team the to BXB U.S. products their provide aisle is businesses as As easy-to-find through help less experience leadership delivery we for in and propel repeat we a should our focusing core local growth, continue for profitable a our of results customers. efforts growth with no-hassle new leg the smaller, the to plan cycle endless with

basis price Operating year as the unfavorable due product marketing investments margins segment freight at From perspective, line gross offset margin margin X.X% slower-than-expected points declined to prior slightly year-over-year realization MonotaRO, Zoro. strong at top a by efficiencies in XX at to continued for which was continued profitability versus and growth the offset Zoro. mix gross expanded favorability and

results Assortment metrics. On Endless Slide XX, with key positive continue operating we our see to

quarter with over total nicely prior XX% with year. line and growth, in side, registered the left-hand Zoro up prior grew users MonotaRO the combined On

in growth the grew Zoro the total. to SKUs we XX.X and by XXX,XXX which in SKU stands right, continue portfolio, On of million also the over second quarter see at

the rest of forward the year. looking Now to

our Given end lower the share of our are midpoint demand the continued ranges. we of supportive revenue full by year our the raising strong earnings increasing outlook and to environment, gain date XXXX and

is which company, includes sales a point outlook daily the midpoint roughly to to X.X% revised XX% total compared of the range. prior Our at XX growth basis for increase

trend company growth steady High-Touch at as top ability our a primarily lower-than-expected continues in confident softness expected our continue due previously to demand share achieve to is Assortment High-Touch drive The half to slightly in we environment. reasonably to offsetting estimates. higher performance the at Zoro mentioned. strength level, second the Endless and we are Altogether, with line amidst updated in gain the as total than growth

Looking constant perspective, margin started specifically a and expectations a margin our currency higher X%, third reported margin over daily the profit month-to-date July, remain update. roughly rate sales strong unchanged previous XX quarter gross is From from operating basis which we’ve and points up basis. both at on

company to perspective, to price/cost investments, generation decline off the the be quarter seasonality rates unwind. quarter-over-quarter we falls favorability continued back margin the Couple rapid as supplier a half demand to one-time and captured operating this continues we the expect and with From this sequentially we QX total year. margins rebate in lower expect as of

range track on resulting the to all-time margins in of covering $XX flow the found and still stands $XX.XX. been also be high. an with been between deck. and raised, XXXX year EPS raised All full can and cash have guidance has we’re However, share at the repurchase, Supplemental in, appendix operating finish revised which

in confident growth to and continue I results our achieve remainder feeling profitable for look drive to forward summary, to customers well, of team’s ability strong In our our shareholders. the XXXX serve

I’ll it that, to D.G. With back for closing turn some remarks.

D.G. Macpherson

of the and Thank continues you, show to our customers. up am very proud team Dee. our way support I

the right the exceptional positions back into any we in our supply digital gain and that find helping deep service our in continue customers to solutions, we capabilities the providing our of customers’ year capabilities, and half Our products well cycle. chain grow and and will understanding stay operation share investing and through us on of the the matter, things focused future. When and

line the open will up we for that, questions. With

Operator

Thank you. [Operator Tommy Please Instructions] Our state first question. question with Moll Stephens. your comes from

Tommy Moll

Good my morning and for questions. taking thank you

D.G. Macpherson

morning. Good

Tommy Moll

versus on on though Zoro’s you was think singles side. side, Dee, the BXB the quarter highlighted trends high And some on I through that the there up, BXB insight was appreciate quarter. you the you BXC said top line even still in I gave weakening it the the

there is, you helpful? customer is us about that in end else my be Thanks. question market could more anything terms can So would there you BXB of anything type or provide or deceleration tell

D.G. Macpherson

Tommy, that. Yes, I’ll take Yes.

appear larger small little the So to the the the about then in those a manufacturing at that sort all. High-Touch than healthcare, if seeing fastest-growing really government customers some some serve. than in the Grainger does. think customers is not be like a that be And Grainger industry you does of lot Zoro Zoro businesses of Zoro those we’re aerospace, vertical more mix And participate the we model softer other model, serves, would segments trend is

those So rate. quarter, the significant to some Zoro factors rate impact. do increase in have repeat work they to but two a have increase the to repeat did continue the

we’re do impact on big the that. is hard Zoro a pretty to So right segment working now. mix But

Tommy Moll

guess of then when emphasis expand? of country That’s just the about wanted CapEx or line I timeline any the you most you ground, in ask I hits. you. to it’s give break then D.G. that a center part more view part, second roof of announced or this strategy we can for to in distribution question. higher-level to just One, you had outgrew helpful, us terms the in Thank a just ribbon, it’s question. cut you anything as a And competitive And the the two-part needed also and existing shift Should Thanks. Oregon.

D.G. Macpherson

Yes.

So will XXXX we and couple building of break is when said, like the fully weeks, we up. ground in be a

a the would center serving And frame distribution and that out on we’ve also Patterson, pretty we branches And is Seattle, in that of time been been have say very I our serving and What Northwest so of of that’s the it. California. we out outgrown have small substantially. out

lower market, Northwest much the the us the us building have putting in have So SKUs building in because that more to transportation also routes service. allows to shorter to better It allows Northwest. up Seattle, costs our in customers from throughout we Portland

continue it where where our we just footprint normal course basically a of it’s So action expand evaluate and to makes sense.

Operator

you. Thank

Ryan from Blair. comes Please state question with next question. Our William your Merkel

Ryan Merkel

for taking of questions. thanks couple gross the morning, questions on good Hi, A margin.

right gross we around XQ? So that Is how it should think half? XQ about a does the little margins in the Is sequentially then bit increase it a little second And and in then in metric? dip XX? bit

Dee Merriwether

So question. the thanks for

of the we’re on started year the kind unwind the have decline price/cost. of of implies then pretty stating impact High-Touch of that kind look think you I we focus all what to if been beginning the what us, to due for we much guide slightly the that at GP at to mostly expecting year and and related

cost price time we exactly say to those to If as price continue things We you and lumpy. we somewhat be can’t continue took last right. recall, year,

go higher And as slightly a so lower sequentially little price. costs we’re going through year the see to we and

GP So bit we the half. to decline in expect second a

Ryan Merkel

Got it.

That’s just margin. gross Okay. question a then helpful. higher-level on And

out I High-Touch think XX%. ‘XX the you was there gross about margin put for guidance

planning you think on in there? good you about Are anytime updating bit that soon? have ‘XX. a thoughts how above might should Or we outlook here new We’re that any

Dee Merriwether

and price what price we’ve and So cost our period well. the exactly to ability really through done you’re of would say And right. I to well this is inflation market

fluid. would like as things we expect diesel update. things a have the quarters as chain supply and I here at our some more look As and coming from efficiencies last outlook an gaining a provide fuel remain we looking we’re And take And couple while down I’m well as some highs, definitely will quarter, future that in still stated still here. to

Operator

Thank you.

state from David comes Our Please next with your question Baird. Manthey question.

David Manthey

least morning. Assortment freight expect like Endless and to – Are you the Can and chain gross of get sustainability until various shift High-Touch a then should are sustainable be reasonably gross bit? trend Good It that Or we really the at well. are and on been, as be going margin, High-Touch. we that any there on you. have factors you in would a that – those about mix, trend of Thank margin to within seems talk these outgrow counter High-Touch, Endless EA back? to cited between band to those factors Assortment would is prone usual the Also and what supply reversion? which

Dee Merriwether

think right the to Yes, think that’s I to way – it. do look about

are with we any to line this have we are chain time. which and year that benefits where prior some that us talking legs the friction right diesel gotten we’ve on we feel But transportation fuel at mentioned And costs getting this, somewhat significant. like over those extra of is tailwinds we specifically we transportation some flip about supply efficiencies, about, in and So D.G. as well now, just talked related can that freight we’re from as those years. had costs

quarter which normalized fairly to to of expect pre-pandemic areas, basis about those And the it one-time turned We XX seeing slightly price/cost levels rebate. did to negative, talked about as points getting that related We’re in continue. as one-time relates we in in kind to we we that. some quarter favorability, are have the close

not feel point target and But the those about XX-ish relates, our stability High-Touch the do as we time. takes but XXXX, So, that of I are margins are good this changing range. puts very in some it again, of in at

D.G. Macpherson

fluctuate. Dave, should Those were where intents cost system. before and was this pandemic-driven efficiencies, that, that terms supply to add at chain in can the we back pandemic. the the we of Those the purposes are That stay The all all we right. efficiencies other point won’t reverse. to thing in all is I The for had would transportation

stay. those So, stay stable. that – it Should that should should pieces of

David Manthey

to Thank price/cost And have you negative do opportunities take a say, you exactly over from have you to plan reestablish next months, mentioned been you price this timing you. a then all? six price/cost up for to you to standpoint. Okay. it’s then but position. you driver saying at mentioned the do little are in High-Touch, a What neutrality that if as line tricky had that actions Dee, things

Dee Merriwether

U.S. other tenet price to are again, us gets and works our optimize that remain price/cost for our competitive. Well, looking team price really to with That’s always and time. hard price the customers over to neutrality the opportunities

key price segments So, to future that’s that are for tenet have – cycle. opportunity optimizing that the biggest say I is ensuring our is each remaining have and customer related price price/cost them. appropriate that in of are over would the here goods growth buoys our we volume we services our growth the the the really we But and the competitive providing

Operator

you. Thank

Our state question. next from your Please question UBS. Chris with comes Snyder

Chris Snyder

wanted the right. in I in Thank that on will said back favorability that also and quarter prepared unwind was the ask half then negative the to that price/cost in you on And said you. also you the of heard I basis. a if year-on-year remarks price/cost. year, at least But price/cost

me you through of conflicting don’t year-on-year So, you. Thank just sound it’s thing. they bit. that? or But know could little think help sequential if a kind maybe I a

Dee Merriwether

Yes.

And our was we price/cost because the this negative. for price/cost that slightly we the to as year, the continues the which we this in price favorable when expected outlook had supplier work is had flow not supply as that started base become last an on to opportunity you because year. the year inflation, rebate And negative So, would to continue cost quarter one-time we provided in adjust coming did costs come now we we with year. as had

price/cost this why will negative become is into that as go we second half of more So, the year.

Chris Snyder

XX think following that. mean I on margin unwind Okay. into on appreciate that the And to we of of the topic. that? then of I supplier maybe Usually level about just rebate, into back just something Thank guess up quarter. price/cost points the the you. on any then any coming you. gross year? And is that’s think more Thank color I way there that also basis fourth half the of kind

Dee Merriwether

Yes.

at one-time prior we look So, X-year maybe longer wouldn’t our I our I a adjustment. if hitting we would related was be expect the something It expect price/cost the period, price/cost end period. And you on do add, not I over It’s over-pivot period, up that to say thing target time. to would to other of it the neutrality would how a over we not That’s negative. continue.

not into have any to that we So, in year are longer half I going to expected that second read some that the this of would of impacts the than are period. continue

Operator

Christopher Oppenheimer. Glynn with state next Our question from Please your comes question.

Christopher Glynn

and taking the of on a that ‘XX to XX% high-single Thanks of demographics maybe you more long-term, have Zoro how to customer perhaps digits, customer question. rationalizing different the as temporary Curious question for has considered algorithm the MonotaRO thought reconsider low-double kind I I a well. Assortment. in for or the is been bit to mix, Endless that had around lull practical flux fundamental perhaps strategies digits. growth XX% know some some

practical what a metric. curious – on that how So, might update be

D.G. Macpherson

Yes.

the question, appreciate I Chris. So,

of margin see historically are to pretty they a they of BXB this have and we the place unwind some fairly – plays business that other forward are different and in sort they some going few temporary probably going understand changes a to as consumer in gross well do that similar that And going business at The on. point. MonotaRO issues think some out. to are be Zoro’s performance business to perform how to has obvious outlook, continued we want quarters think that I Japan this of more not

So, changing certainly, year the future, goes we that about as will the to in talk but sort ready of not on. outlook consider really the

Christopher Glynn

is curious of the half? that for about that And on Great. just a dollar the benchmark SG&A rate stability was second kind think range kind good then second spend I Okay. in the quarter, to rate of in

Dee Merriwether

a to that’s consider. I good think Yes, thing

Operator

Thank you.

Research. next Please Levinson Melius from your with Jacob question question. state Our comes

Jacob Levinson

morning and Good D.G. Dee.

D.G. Macpherson

morning. Good

Dee Merriwether

Good morning.

Jacob Levinson

If about and move just sense can one trying price-related you or put through are will whether suppliers midyear on down, really are increases humor if to coming latter past talking or your with cycle, are of inflation they increases have about get you question whether the we then price a level, will? price further we just more of already year talking half that the if in high or

Dee Merriwether

We supplier cadence with get are our that normal our normal and some working base of not to so was inflation back during the pandemic.

So, we to we embedded I working what this as with good cost in the handle what XXXX like. our relates looks be, it will year, believe And them course, think we that have guide. we on year, have will our a start on inflation of and later in

D.G. Macpherson

we the the And of Jake. talked year, about beginning Yes. this at

this almost of to inflation we last are that from all year is year. think see I the wrapped going

takes, of inflation so in a not with But our we general, And are from lot in is suppliers. seeing puts additional there ups coming suppliers. and just and downs

Jacob Levinson

Okay. That makes sense.

couple there in have forward, disruptions maybe and said of sort normal seen chain so? higher years back the XXXX or there that last the know new second. in was inventory it issues maybe seem a a switching thinking that’s is lose we I sure than is stabilized stocking some or levels supply to differently, here. post how gears for inflation Just going that inventories about are to am terms I but dollar math there, have is you your of in in COVID

D.G. Macpherson

premises generally we so two would think when – inventory is we mean levels. what say I have I about Yes.

to stock The see service first one levels. is

items, we So, we velocity on have is want on competitively advantaged. we based set to the And the basically targets those to stock service for of items that. provide that

supplier mostly isn’t manage come historically those that a an to back down. revenue. necessarily where now. down, look come suspect inventory to we we sure to productive were We don’t can Those as continue And down. we from elongated I be mostly lead perspective some inventory have times is make at to have other wasteful world. are that The I in inventory, we think and new still

Operator

Thank you.

Our from with next comes your JPMorgan. Please question Patrick question. state Baumann

Patrick Baumann

Hi. Good morning.

Just I got on more one price.

– if to finish how to you Sorry in the curious you seeing – you is price changes are your think CRP. will like like to on of are changes respect just with ahead making High-Touch? to think at about The update with that. I an year in have there web the going And demand changes you see make pricing you any

velocity Just And curious the changes well to that as has then to up the there? seeing in holding are you’re making related Zoro has moves [ph] High-Touch you as any on been discussion, segment? if it within price

Dee Merriwether

start. So, will I

gross in business, We price earlier margin make need always the in pricing balance don’t that some of see they bit as the and from at the changes Zoro on to I perspective their in We products alluded to. have remaining passed the significant year, with been year. the their actions line inflation have but targeting the to say, they market that on have with are segment made different also operates a pricing to own competitive looking is U.S. the team that’s a and And The taken pricing that price adjustments is and algorithm are differently are and focused would any D.G. making a the pricing serving in for the sure that little customer team we pricing customers competitively priced. them.

Patrick Baumann

the High-Touch the the for update And at do the for question. have at part of that? That you High-Touch, price on was year prices year, there an then

Dee Merriwether

understand. I Alright.

around So, X%. changed. to remains it still That hasn’t X%

Patrick Baumann

something less just little I again. bit curious there hold than else? previously drove is better-than-expected guidance? on the am cash to follow-up upgrade planning what is to inventory my I And guess Okay. you the or Was planned, guide, the inventory a it are you

Dee Merriwether

improvement operating million $XX result the really High-Touch we at No. about Really, the really to And the the update flowed took flow opportunity a cash that’s the guide through. to of operating is as at cash midpoint. that, line due top outlook

Patrick Baumann

Thank you. Okay.

Operator

you. Thank

Our from Deane yourself. open. next comes your RBC Capital question Dray un-mute And state Please question. line with your Dray, Markets. is Please

D.G. Macpherson

Dray know… probably We Deane we think it’s since

Operator

Deane Sorry Dray.

open, RBC please Your line ahead, Capital go is Markets.

the final that’s question for Here move on. And we will today.

for I over So, the remarks. Thank to Macpherson now turn you. D.G. floor will closing

D.G. Macpherson

for I We the out joining as we we out playing is Thanks of at the today. year the expected. actually expected like say beginning about call price/cost. year. What a much almost played lot talked It’s would the is Alright. pretty exactly

surprises So, point. this in there the are no market at really generally

positioned good relative feel our We and the second strong like continue our well a to feel market. share about have we profitability half really performance, our gain, to are to

forward and that. seeing you being continue we are so I line. talking appreciate on to on you much. And the going And just down to the to you we work so and look to Thanks call,

Operator

you. This today’s conference. concludes Thank

all your You you may at participation. this disconnect for your time. lines Thank

W.W. Grainger (GWW) 27 Jul 232023 Q2 Earnings call transcript