Sherwin-Williams released its Q2 financials last week. A very brief summation: Price increases and increased demand from pro painters were strong positives. Falling DIY demand and rising costs were negatives. The company plans a 10% price increase effective Sept. 6.
S-W reported revenue ($5,872.3 million) that was up ~9% year over year, according to Yahoo, and earnings ($2.21/share) that were down ~9% year over year. Both numbers missed Wall Street estimates.
- Two factors contributing to revenue growth: higher selling prices and higher volume in professional architectural sales.
- Factor offsetting growth: Weaker North American DIY demand.
- Sherwin-Williams repurchased 2.55 million shares of its common stock in the first half.
- Yahoo reports that S-W shares have declined 11.6% in the past year compared with 8.8% decline of the industry.
Some comments from John G. Morikis, Chairman and Chief Executive Officer:
- "We are responding aggressively to inflationary pressures by implementing a 10% price increase in The Americas Group effective September 6th.”
- "Speaking to trends in the business since our June 8th investor day, pro architectural demand in The Americas Group accelerated as the quarter progressed and has meaningfully strengthened further in July.”
- “The slower North America DIY demand trend we previously described in Consumer Brands Group did not improve.”
- “We will manage our expenses tightly in the second half with the slowdown in market demand in certain regions and businesses, however, we will continue to invest in growth, including stores, sales representatives and innovative products.”
- "We expect third quarter 2022 consolidated net sales to increase by a low to mid-teens percentage compared to the same period a year ago."
For additional details, read stories here and here.
S-W: Prices and Pro Demand Increase
Another price increase, oh well, Benjamin Moore is alive and well.
Product price increase
If Sherwin Williams raises product cost 10% across the board this September, I will seriously start looking at competitor products. I have been a long term loyal contractor to the brand. At this time a 10% increase is unacceptable
Another price increase?
Didn't they just have a price increase at the beginning of this year? Talk about corporate greed and taking advantage of the guy to boost profits. Just because another industry raises their costs isn't a pass to do so yourselves.
price increase no loyalty !!!!
This is totally crazy
I have been a loyal customer since the buyout of MAB paints
They have recently purchased A new company
& have become the largest paint company worldwide
Maybe they bit off more than they can chew with this aquisition
Let take care of the loyal painters who have gotten you to this point
Need to start looking elsewhere for suppliers
or a buying team
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