Strategic focus driving business forward; Company reaffirms full year 2024 guidance ranges First Quarter Highlights Delivered sales of $4.2 billion, up 3.5%, or 4.9% on a daily, organic constant currency basis Achieved operating margin of 15.8%, down 80 basis points Increased diluted EPS by $0.01 to $9.62 Generated $661 million in operating cash flow and returned $360 million to Grainger shareholders through dividends and share repurchases Announced dividend increase of 10% Refreshed repurchase authorization for up to 5 million shares of common stock Reaffirming FY 2024 guidance CHICAGO, April 25, 2024 /PRNewswire/ -- Grainger (NYSE:GWW) today reported results for the first quarter of 2024 with sales of $4.2 billion, up 3.5%, or 4.9% on a daily, organic constant currency basis, and diluted EPS of $9.62, up 0.1% compared to the first quarter of 2023.  "Our 2024 performance so far shows that the team is focusing on what matters and living our purpose—We Keep the World Working®. We've produced solid results amidst a slow, but steady demand environment," said D.G. Macpherson, Chairman and CEO. "Looking to the remainder of the year, we are well-positioned to achieve our guidance outlook as we work to provide a flawless experience and deliver tangible value for our customers." 2024 First Quarter Financial Summary ($ in millions, except per share amounts) Q1 2024 (1) Q1 2023 (1) Q1'24 vs. Q1'23 Fav. / (Unfav.) Net Salesc $4,235 $4,091 3.5 % Gross Profit $1,668 $1,634 2.1 % Operating Earnings $669 $680 (1.6) % Net Earnings Attributable to W.W. Grainger, Inc. $478 $488 (2.0) % Diluted Earnings Per Share $9.62 $9.61 0.1 % Gross Profit Margin 39.4 % 39.9 % (50) bps Operating Margin 15.8 % 16.6 % (80) bps Effective Tax Rate 24.2 % 23.3 % (90) bps (1) Results are consistent on a reported and adjusted basis. RevenueSales in the quarter, on a reported and daily basis, increased 3.5% compared to the first quarter of 2023. Normalizing for the impact of foreign currency exchange and the Company's 2023 divestiture of its subsidiary, E & R Industrial Sales, Inc., sales on a daily, organic constant currency basis increased 4.9% compared to the first quarter of 2023. In the High-Touch Solutions - N.A. segment, daily sales were up 3.4% compared to the first quarter of 2023, with growth in all geographies. In the Endless Assortment segment, daily sales were up 3.7%, or 10.0% on a daily, constant currency basis, compared to the first quarter of 2023. Revenue growth for the segment was driven by core customers at Zoro and enterprise customers at MonotaRO, partially offset by the continued decrease in non-core customers at Zoro. Gross Profit MarginGross profit margin for the first quarter of 2024 was 39.4%, a 50-basis point decline from the first quarter of 2023. The decrease was driven by declines in both segments. In the High-Touch Solutions - N.A. segment, gross profit margin decreased by 60 basis points over the first quarter of 2023 due primarily to negative price / cost spread partially offset by sustained freight and supply chain efficiencies.  In the Endless Assortment segment, gross profit margin declined by 30 basis points from the first quarter of 2023 as continued freight efficiencies at MonotaRO were offset by unfavorable product mix at Zoro. EarningsOperating earnings for the first quarter of 2024 were $669 million, down 1.6% compared to the first quarter of 2023. Operating margin in the quarter was 15.8%, an 80-basis point decrease from the first quarter of 2023 as continued investment in demand generating activities in the High-Touch Solutions - N.A. segment was partially offset by operating efficiencies at MonotaRO. Diluted earnings per share of $9.62 in the first quarter of 2024, increased 0.1% compared to the first quarter of 2023. The decline in operating earnings was offset by a lower share count in the current year period. Tax RateThe first quarter 2024 effective tax rate was 24.2%, compared to 23.3% in the first quarter of 2023. The increase in the effective tax rate was primarily due to decreased stock compensation tax benefit. Cash FlowDuring the first quarter of 2024, the Company generated $661 million of cash flow from operating activities, as solid net earnings were further aided by the favorable timing of working capital. The Company invested $119 million in capital expenditures, resulting in free cash flow of $542 million. During the quarter, the Company returned $360 million to Grainger shareholders through dividends and share repurchases. GuidanceThe company is reaffirming the following guidance ranges as previously announced on February 2, 2024. Total Company(1) FY 2024 Guidance Range (reaffirmed April 25, 2024) Net Sales $17.2 - $17.7 billion    Sales Growth 4.3% - 7.3%    Daily, organic, constant currency sales growth 4.0% - 7.0% Gross Profit Margin 39.1% - 39.4% Operating Margin 15.3% - 15.8% Diluted Earnings per Share $38.00 - $40.50 Operating Cash Flow $1.9 - $2.1 billion CapEx (cash basis) $0.4 - $0.5 billion Share Buyback $0.9 - $1.1 billion Effective Tax Rate ~24.0% Segment Operating Margin High-Touch Solutions - N.A. 17.4% - 17.9% Endless Assortment 7.3% - 7.8% (1) Guidance provided is on an adjusted basis. Daily, organic constant currency sales growth is adjusted for the impact of two additional selling days in 2024 as compared to 2023, the sale of the Company's divested E & R Industrial Sales, Inc. subsidiary completed in the fourth quarter of 2023, and changes in foreign exchange. The Company does not reconcile forward-looking non GAAP financial measures. For further details see the supplemental information of this release. WebcastThe Company will conduct a live conference call and webcast at 11:00 a.m. ET on Thursday, April 25, 2024, to discuss the first quarter results. The webcast will be hosted by D.G. Macpherson, Chairman and CEO, and Deidra Merriwether, Senior Vice President and CFO, and can be accessed at invest.grainger.com. For those unable to participate in the live event, a webcast replay will be available for 90 days at invest.grainger.com. About GraingerW.W. Grainger, Inc., is a leading broad line distributor with operations primarily in North America, Japan and the United Kingdom. At Grainger, We Keep the World Working® by serving more than 4.5 million customers worldwide with products delivered through innovative technology and deep customer relationships. With 2023 sales of $16.5 billion, the Company operates two business models. In the High-Touch Solutions segment, Grainger offers approximately 2 million maintenance, repair and operating (MRO) products and services, including technical support and inventory management. In the Endless Assortment segment, Zoro.com offers customers access to more than 13 million products, and MonotaRO.com offers more than 22 million products. For more information, visit www.grainger.com. Visit invest.grainger.com to view information about the Company, including a supplement regarding 2024 first quarter results. Additional Company information can be found on the Grainger Investor Relations website which includes the Company Snapshot and ESG report. Safe Harbor Statement All statements in this communication, other than those relating to historical facts, are "forward-looking statements." Forward-looking statements can generally be identified by their use of terms such as "believe," "could," "future," "guidance," "may," "predict," "prospects," "will," or "would," and similar terms and phrases, including references to assumptions. Forward-looking statements are not guarantees of future performance and are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such statements. Forward-looking statements include, but are not limited to, statements about future strategic plans and future financial and operating results. Important factors that could cause actual results to differ materially from those presented or implied in the forward-looking statements include, without limitation: inflation, higher product costs or other expenses, including operational and administrative expenses; the impact of macroeconomic pressures and geopolitical trends, changes and events; a major loss of customers; loss or disruption of sources of supply; changes in customer or product mix; increased competitive pricing pressures; changes in third party practices regarding digital advertising; failure to enter into or sustain contractual arrangements on a satisfactory basis with group purchasing organizations; failure to develop, manage or implement new technology initiatives or business strategies, including with respect to Grainger's eCommerce platforms; failure to adequately protect intellectual property or successfully defend against infringement claims; fluctuations or declines in Grainger's gross profit margin; Grainger's responses to market pressures; the outcome of pending and future litigation or governmental or regulatory proceedings, including with respect to wage and hour, ...