The COVID-19 pandemic closed many of its stores in April and May, but Sherwin-Williams (NYSE: SHW) still managed to post strong overall second-quarter results.
The paint products giant said on Tuesday morning that global revenue declined 6% for the period, which captures the selling months of April, May, and June that roughly correspond to the most impacted days to date on consumer shopping behavior. COVID-19-related closures pushed sales lower as most of its retailing stores dramatically scaled back their services.
Image source: Getty Images.
However, a spike in demand from its retailing partners offset much of that decline. In fact, sales to its U.S. retailing network jumped 21% as consumers turned their attention to home upgrades. CEO John Morikis said the boost amounted to "unprecedented demand for architectural DIY paint" in the U.S. division. The growth also helped push profitability significantly higher.
Sherwin-Williams responded to the improving trends by lifting its outlook. The company now sees sales this year landing at about the same level as they did in 2019. Management also boosted its earnings target, with profit now predicted to land between $19.21 per share and $20.71 per share, up from the prior range of $16.46 per share to $18.46 per share.
10 stocks we like better than Sherwin-Williams
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Sherwin-Williams wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of June 2, 2020
Demitrios Kalogeropoulos owns shares of Sherwin-Williams. The Motley Fool recommends Sherwin-Williams. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
