Grainger reported sales, including fasteners, climbed 5.6% to $4.6 billion in the second quarter of 2025, with operating earnings rising 4.5% to $678 million and operating margin slipping 20 basis points to 14.9%. Performance was impacted by tariff-related factors, which have prompted Grainger to downgrade its outlook for the remainder of the year.

In the High-Touch Solutions - N.A. segment, Q2 sales were up 2.5%, driven by growth across all geographies. Gross profit margin dropped 70 basis points to 41% “as tariff-related inflation caused unfavorable price / cost timing.”

In the Endless Assortment segment, Q2 sales gained 19.7%, with revenue growth driven by strong performance at both MonotaRO and Zoro.

Due to U.S. tariffs, Grainger first raised prices in May on imported products. The distribution giant plans to raise prices further in September “to reflect certain prevailing tariffs.”

Grainger promised “additional pricing actions as needed to mitigate incremental cost.”