Beacon sales hindered by state restrictions
Building products distributor Beacon said that it expects to report second quarter 2020 sales of $1.46 billion, a 2% increase compared to sales of $1.43 billion in the second quarter a year ago.
In its preliminary second quarter financial results, released today, Beacon also said that it expects to post a net loss between $120 million and $130 million. In the second quarter 2019, Beacon posted a net loss of $30.9 million.
The Herndon, Va.-based company attributed much of the loss to the company’s rebranding effort. In January, Beacon repositioned 40 of its brand names to Beacon.
Beacon President and CEO Julian Francis said that the company continues to deliver products to all areas of the construction market, both residential and commercial. Also, just about all of Beacon’s 500-plus locations remain open while being designated as essential.
But Francis noted that during April, many of Beacon’s markets have experienced modest negative impacts with mid-to-high single digit daily sales decreases when compared to last year.
In a select number of states, including California, New York, New Jersey and Pennsylvania – where stronger restrictions in place – Beacon has experienced more significant year-over-year headwinds. As a result, overall April daily sales are down 20% year-over-year.
“Repair and replacement of damaged or aging roofs represents more than 80% of total roofing demand and clearly contributes to the health and well-being of the community, particularly those hit by damaging storms these past few weeks,” Francis said. “While we continue to serve customers in every way possible, our online platform has stood out as an increasingly valuable tool in this operating environment.”
In its preliminary second quarter financial results, released today, Beacon also said that it expects to post a net loss between $120 million and $130 million. In the second quarter 2019, Beacon posted a net loss of $30.9 million.
The Herndon, Va.-based company attributed much of the loss to the company’s rebranding effort. In January, Beacon repositioned 40 of its brand names to Beacon.Beacon President and CEO Julian Francis said that the company continues to deliver products to all areas of the construction market, both residential and commercial. Also, just about all of Beacon’s 500-plus locations remain open while being designated as essential.
But Francis noted that during April, many of Beacon’s markets have experienced modest negative impacts with mid-to-high single digit daily sales decreases when compared to last year.
In a select number of states, including California, New York, New Jersey and Pennsylvania – where stronger restrictions in place – Beacon has experienced more significant year-over-year headwinds. As a result, overall April daily sales are down 20% year-over-year.
“Repair and replacement of damaged or aging roofs represents more than 80% of total roofing demand and clearly contributes to the health and well-being of the community, particularly those hit by damaging storms these past few weeks,” Francis said. “While we continue to serve customers in every way possible, our online platform has stood out as an increasingly valuable tool in this operating environment.”