Sherwin-Williams stores saw Q1 sales rise
Sherwin-Williams experienced a robust first quarter with growing sales at its North American stores. But the company is bracing for economic challenges ahead.
For the first quarter ended March 31, sales for the Americas Group increased 7.0% to $2.31 billion, largely due to higher sales of paint across all end markets in North American stores. Comp-store sales for North American stores were up 7.4% in the quarter.
Net income for the Cleveland-based paint giant was up more than 31%. But as relief from the coronavirus outbreak is unclear, CEO John Morikis expects the business will take a bigger hit in the coming months.
Revising its full year forecast, Sherwin-Williams painted two scenarios. If economic conditions begin returning to normal in the third quarter 2020 and continue improving through the fourth quarter 2020, the company anticipates full year consolidated net sales to be flat to down a low single digit percentage. If things don’t improve until the first quarter of 2021, the company expects full year 2020 consolidated net sales to decrease by a mid-to-high single digit percentage.
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Bottom line: Consolidated net income increased 31.2% to $321.7 million.
What the CEO said: “We anticipate that the rapid deterioration of the U.S. and global economies experienced late in the first quarter due to the COVID-19 pandemic will most likely continue through the second quarter," Morikis said. "We see no immediate, meaningful improvement ahead in most end markets we serve, and we are unable to predict when any noticeable improvement will occur. Given the trends and indicators we see at this time, we anticipate second quarter 2020 consolidated sales will decrease by a low-to mid teens percentage versus the second quarter of 2019."
For more: The company’s complete first quarter earnings release is available here.
For the first quarter ended March 31, sales for the Americas Group increased 7.0% to $2.31 billion, largely due to higher sales of paint across all end markets in North American stores. Comp-store sales for North American stores were up 7.4% in the quarter.
Net income for the Cleveland-based paint giant was up more than 31%. But as relief from the coronavirus outbreak is unclear, CEO John Morikis expects the business will take a bigger hit in the coming months.
Revising its full year forecast, Sherwin-Williams painted two scenarios. If economic conditions begin returning to normal in the third quarter 2020 and continue improving through the fourth quarter 2020, the company anticipates full year consolidated net sales to be flat to down a low single digit percentage. If things don’t improve until the first quarter of 2021, the company expects full year 2020 consolidated net sales to decrease by a mid-to-high single digit percentage.
# # #
Bottom line: Consolidated net income increased 31.2% to $321.7 million.
What the CEO said: “We anticipate that the rapid deterioration of the U.S. and global economies experienced late in the first quarter due to the COVID-19 pandemic will most likely continue through the second quarter," Morikis said. "We see no immediate, meaningful improvement ahead in most end markets we serve, and we are unable to predict when any noticeable improvement will occur. Given the trends and indicators we see at this time, we anticipate second quarter 2020 consolidated sales will decrease by a low-to mid teens percentage versus the second quarter of 2019."
For more: The company’s complete first quarter earnings release is available here.