Company: GGG
Filing Date: 2025-07-23
Form Type: 10-Q
Source: 0000042888-25-000025
Chunk: 51

Company: GRACO INC
Filing Date: 2025-07-23
Form: 10-Q
Item: Item 2
Chunk 51
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 Three Months Ended   Six Months Ended June 27,2025June 28,2024June 27,2025June 28,2024Americas(1)$351.9 $364.3 $675.1 $670.8 EMEA(2)129.9 108.7 250.9 219.8 Asia Pacific90.0 80.2 174.1 154.8 Consolidated$571.8 $553.2 $1,100.1 $1,045.4 

(1)     North, South and Central America, including the United States

(2)    Europe, Middle East and Africa

The following table presents the components of net sales change by geographic region:

Three MonthsSix MonthsVolume and PriceAcquisitions CurrencyTotalVolume and PriceAcquisitions CurrencyTotalAmericas(6)%3%0%(3)%(2)%3%0%1%EMEA2%12%5%19%1%12%1%14%Asia Pacific5%8%(1)%12%5%9%(2)%12%Consolidated(3)%6%0%3%0%6%(1)%5%

Gross Profit

The gross profit margin rate declined approximately 2 percentage points for both the second quarter and year to date from the comparable periods last year due to higher product costs, including $4 million of increased tariff costs, and the unfavorable effects of lower margin rates from acquired operations.

Operating Expenses

Total operating expenses increased $3 million (2 percent) for the second quarter and $3 million (1 percent) for the year to date, respectively, compared to last year. Incremental expenses from acquired operations of $9 million for the quarter and $19 million for the year to date were partially offset by decreases in product development spending, sales and earnings-

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based incentives and share-based compensation. The second quarter and year to date periods last year included $3 million of expenses associated with the relocation to a new distribution center.

Other (Income) Expense

Other non-operating income decreased $3 million for both the second quarter and year to date from the comparable periods last year and included exchange losses on net liabilities of certain foreign operations of $5 million for the quarter and $8 million for the year to date. Favorable market valuation changes on investments held to fund certain retirement benefits partially offset these exchange losses. Other income for the year