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The company’s decision to exit the U.K. underscores its strategy to concentrate resources in markets where its digital model scales best.

Industrial supplies distributor W.W. Grainger reported steady sales growth in the third quarter, but a sharp decline in profit tied to its planned withdrawal from the United Kingdom.

Grainger also narrowed its full-year outlook while emphasizing the growing role of digital commerce in its performance.

For its fiscal Q3 ending Sept. 30, 2025, Grainger posted sales of $4.657 billion. That’s up 6.1% from $4.388 billion a year earlier. Net earnings fell 39.5% to $294 million from $486 million in the third quarter of 2024, reflecting noncash charges related to its decision to divest its Cromwell business and exit the U.K. market.

Through the first nine months of 2025, net sales totaled $13.517 billion, up 4.5% from the prior year, while net earnings were $1.255 billion, down 12.5%.

Grainger digital sales in Q3 2025

Grainger’s digital-first Endless Assortment unit — home to online sellers Zoro in the U.S. and MonotaRO in Japan — continued to outperform, with sales rising 18.2% year over year in Q3. Executives credited the gains to improved search tools, faster fulfillment, and more efficient marketing, which is boosting customer acquisition and repeat purchases.

“Tech and AI will continue to be an ongoing focus for Grainger, enabling us to provide great solutions for customers and drive productivity in our operations,” said CEO D.G. Macpherson, noting that the company is leveraging proprietary data to create “a more seamless user experience.”

Grainger’s core High-Touch Solutions North America segment grew 3.4% on a daily constant-currency basis. The segment serves large enterprise and institutional customers. Higher prices helped offset tariff-related cost increases. However, inflation and inventory valuation effects pressured its margins.

The company’s gross profit margin slipped to 38.6% from 39.2% a year earlier, due to tariff impacts and accounting adjustments in its traditional business. By contrast, Endless Assortment saw margin expansion of about 60 basis points, helped by its asset-light model and rising online efficiency.

Macpherson said the results “reinforce the value and differentiated experience Grainger consistently creates for our customers,” adding that the company remains focused on “strong execution, industry-leading service, and innovative capabilities.”

Grainger’s decision to exit the U.K. underscores its strategy to concentrate resources in markets where its digital model scales best. When announcing the Cromwell divestiture, Macpherson said the move reflects “a concerted effort to focus our portfolio on the geographies where we can deliver the greatest long-term impact,” pointing to North America and Japan as the company’s strongest growth engines.

Grainger’s outlook for the remainder of 2025

Chief financial officer Deidra Merriwether said Grainger expects its companywide margin to stabilize near 39% as pricing and costs align and tariff effects ease. She added that digital investments are improving both customer engagement and operating efficiency.

Grainger now forecasts 2025 sales between $17.8 billion and $18.0 billion. That’s down slightly from its previous range of $17.9 billion to $18.2 billion. Management said the updated outlook reflects:

  • The United Kingdom exit
  • Inflationary costs
  • Amodest slowdown in public-sector demand caused by the recent federal government shutdown

Even with those headwinds, Grainger’s digital businesses are carrying much of its momentum. As the MRO market remains sluggish, the company’s path forward hinges on data-driven digital growth, smarter customer acquisition and a tighter focus on the regions — and platforms — where its scale and technology investments deliver the greatest return.

Check back for more earnings reports. Here’s last quarter’s update on Grainger sales.

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