GWW W.W. Grainger Dashboard

Risks

• Weakness in the economy, market trends and other conditions affecting the profitability and financial stability of Grainger’s customers could negatively impact Grainger’s sales growth and results of operations.
• The facilities maintenance industry is highly competitive, and changes in competition could result in decreased demand for Grainger’s products and services.
• Volatility in commodity prices may adversely affect gross margins.
• Unexpected product shortages, tariffs, product cost increases and risks associated with Grainger’s suppliers could negatively impact customer relationships or result in an adverse impact on results of operations.
• Changes in customer base or product mix could cause changes in Grainger’s revenue or gross margin, or affect Grainger’s competitive position.
• Disruptions in Grainger’s supply chain could result in an adverse impact on results of operations.
• Interruptions in the proper functioning of information systems could disrupt operations and cause unanticipated increases in costs and/or decreases in revenues.
• Cybersecurity incidents, including breaches of information systems security, could damage Grainger’s reputation, disrupt operations, increase costs and/or decrease revenues.
• Grainger’s ability to adequately protect its intellectual property or successfully defend against infringement claims by others may have an adverse impact on operations.
• Fluctuations in foreign currency could have an effect on reported results of operations.
• In order to compete, Grainger must attract, retain, train, motivate, develop and transition key employees, and the failure to do so could have an adverse effect on results of operations.
• Grainger’s continued success is substantially dependent on positive perceptions of Grainger’s reputation.
• Grainger is subject to various domestic and foreign laws, regulations and standards. Failure to comply or unforeseen developments in related contingencies such as litigation could adversely affect Grainger’s financial condition, results of operations and cash flows.
• Grainger is subject to a number of rules and regulations related to its government contracts, which may result in increased compliance costs and potential liabilities.
• In conducting its business Grainger may become subject to legal proceedings or governmental investigations, including in connection with product liability or product compliance claims if people, property or the environment are harmed by Grainger’s products or services.
• Tax changes could affect Grainger’s effective tax rate and future profitability.
• Grainger’s common stock may be subject to volatility or price declines.
• Changes in Grainger’s credit ratings and outlook may reduce access to capital and increase borrowing costs.
• Grainger has incurred substantial indebtedness and may incur substantial additional indebtedness, which could adversely affect cash flow, decrease business flexibility, or prevent Grainger from fulfilling its obligations.