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.
Add new comment
You Might Also Be Interested In
A Timeless Finish
A new custom formula for an old home in St. Louis.