Sherwin-Williams sales, profit up in Q2
Sherwin-Williams recorded net earnings of $202.6 million, up 9.8 percent from $184.6 million last year. The paint and coatings giant had sales of $2.2 billion in the second quarter, up 3.3 percent from $2.13 billion in last year’s second quarter.
“We are encouraged by the positive sales results generated by the paint stores and global groups during the quarter,” said Christopher Connor, chairman and CEO of Sherwin-Williams. “We continued to invest in new stores during the quarter, opening 13 net new stores and acquiring another 131 in our paint stores group.”
Net earnings in the company’s paint stores group were $238.2 million, up 10 percent from $217.2 million last year. Sales at Sherwin-Williams’ paint stores were up 3 percent to $1.37 billion from $1.33 billion last year. Same-store sales were flat in the quarter. The acquisition of M. A. Bruder & Sons of Philadelphia added 131 new stores to the company’s paint stores group and increased the group’s net sales by 1 percent.
Consumer group earnings were $82.6 million, up 8.3 percent from $76.3 million last year. Sales fell 1 percent to $396.6 million from $400.9 million last year. “The sales declines were due primarily to soft DIY demand at most of the group’s retail customers,” the company said.
In the company’s global group, earnings were up 43.7 percent to $48.9 million from $34.03 million last year. Sales in the global group were $434.3 million, up 9 percent from $398.8 million last year. The net sales increases were due primarily to a new product introduction in the United Kingdom, architectural and automotive paint volume gains in South America and improved product finishes sales.
Based in Cleveland, Sherwin-Williams is the ninth largest home channel retailer in the United States with retail sales of $4.84 billion in 2006, according to HCN’s list of top 500 home channel companies.
BlueLinx and CCA Global form partnership
BlueLinx Holdings, one of the industry’s leading building materials distributors, has entered into a logistics partnership with CCA Global Partners, a $10.2 billion organization of flooring retailers, buying groups and other affiliates.
Under the long-term agreement, BlueLinx will deliver CCA Global’s private label flooring line, called Global Direct, to the company’s nationwide network of more than 2,300 retailers. Utilizing its sales force, BlueLinx will create demand for the Global Direct flooring line as well as provide customer service, manage inventory and accounts receivable.
CCA Global will continue to source and own the inventory, which includes approximately 100 skus of solid and engineered wood, laminate and cork flooring. BlueLinx has exclusive rights to distribute the CCA Global Direct flooring line, including delivery of cartons, pallets, truckloads and direct containers.
“This is a ground breaking relationship for CCA Global and an innovative development for our industry,” said Jim Gould, CCA Global chief product officer. “We have worked with BlueLinx for the past year and have been impressed with their capabilities. Our new, expanded relationship allows us to globally source products and leverage BlueLinx’s expertise to manage the sales and inventory process across America, providing just-in-time local delivery.”
George Judd, BlueLinx president and chief operating officer, noted some additional opportunities for his Atlanta-based firm. “BlueLinx is well positioned to offer CCA Global business owners ancillary products that accompany the sale of flooring products, including mouldings, underlayment, fasteners and tools, as well as unfinished hardwood,” he said.
IKEA plans ‘sleepover’ promotion
IKEA is planning a special promotion at an Oslo, Norway, location during which shoppers will be able to spend the night in specially furnished rooms during the week of July 23-27, according to a report by the AFP.
Shoppers will be able to reserve rooms free-of-charge decorated as a bridal suite, luxury suite, a dormitory with bunks and family rooms.
IKEA has dubbed the area the IKEA Hostel, and guests will be able to check in at 10 p.m., one hour before the store closes. Guests will be allowed to take home bathrobes and their bedsheets.
“It will be like an alternative hostel,” company spokesman Frode Ullebust told the AFP. Ullebust added it is the first time IKEA has tried the promotion.