Net sales were $2.8 billion, up 1% from last year and up 3% daily. On a constant currency basis, sales increased by 4% daily and 4.5% after normalizing for the change in accounting estimate in the prior-year quarter. The latest quarter had one less selling day than the prior year period.
Sales were composed of a 3.0 percentage point increase in volume and a 1.5 percentage point increase from price. Sales performance was softer-than-expected largely due to a weaker demand environment.
Looking ahead into the full year 2019, the company reiterated its net sales growth outlook in the range of 4% to 8.5% and operating margin estimate in the range of 12.2% to 13%. Net sales are still anticipated to be in the range of $11.7 billion to $12.2 billion and earnings are predicted to be in the range of $17.10 to $18.70 per share.
For fiscal 2019, the company still predicts a gross profit margin in the range of 38.1% to 38.7% and the tax rate in the range of 24.5% to 27.5%. Grainger remained in its ability to gain share and generate selling, general and administration leverage in 2019.
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For the first quarter, sales for the US segment rose by 2%, driven by volume growth, price inflation, and Intercompany sales growth. Sales from Other Businesses grew 8%, on growth from price and volume. The performance in Other Businesses was driven by 22% daily sales growth for the endless assortment businesses.
Sales for Canada decreased by 25%, due to a dip in volume. Gross margin dropped by 125 basis points while operating margin improved by 240 basis points due to lower SG&A expenses.
Shares of Grainger ended Thursday’s regular session down 0.05% at $308.18 on the NYSE. The stock has risen over 9% in the year so far and over 6% in the past year.