W. W. Grainger (NYSE: GWW) today reported results for the 2019 second quarter. Sales of $2.9 billion in the quarter increased 1% versus the 2018 second quarter. On a constant currency basis, sales were up 2%.
"We continued to demonstrate our ability to generate profitable growth in the second quarter of 2019. Despite slower than expected global economic growth and our significant investment in the endless assortment model, we drove strong operating results and cash flow," said CEO D.G. Macpherson,
"We gained share in the first half of the year at a modest pace, and we remain confident in our ability to accelerate our growth versus the market for the remainder of the year as our top line initiatives continue to take hold.
Grainger reported operating earnings of $380 million, up 11%; adjusted operating earnings of $377 million, up 5%. Operating margin of 13.1%, up 110 basis points; the adjusted operating margin was 13%, up 50 basis points. Reported EPS was $4.67, up 12%. Adjusted EPS of $4.64, up 6%. Operating cash flow was $323 million, up 30%.
Macpherson continued, "We are reiterating our 2019 total company guidance ranges for gross profit margin, operating margin and earnings per share. We are lowering our estimate for market growth from 1% to 4% to -1% to 2% and lowering our revenue guidance from 4% to 8.5% growth to 2% to 5% growth due to the weaker demand environment and performance at AGI and Cromwell."
Shares in Grainger popped $9.38, or 3.4%, to $288.16
