Residential repaint, commercial, and property maintenance sales help offset a decrease in DIY activity.
Sherwin-Williams reported consolidated net sales increased 16.8% in the second quarter to $5.38 billion from second quarter 2020 sales of $4.6 billion.
In The Americas Group (TAG), sales jumped 22.6% during the quarter to over $3 billion from sales of $2.5 billion in the prior second quarter.
TAG results were boosted by higher architectural sales across all professional end markets, led by residential repaint, commercial, and property maintenance. Sherwin-Williams said pro sales more than offset a decrease in DIY sales and selling price increases.
Sales in Sherwin-Williams’ consumer brands group fell 25.4% to $731.5 million in the second quarter compared to sales of $980.2 million in the second quarter 2020. The paint and coatings manufacture attributed the downturn to lower sales volumes to most of its retail customers and the Wattyl divestiture, partially offset by selling price increases.
Performance coatings sales soared 41.3% to about $1.55 billion in the quarter from sales $1.1 billion for the same period last year.
The Cleveland, Ohio-based company posted a second quarter net income of $648.6 million, increasing nearly 9% from a net income of $595.9 million in the second quarter 2020.
The Bottom Line: Profits at the paint and coatings giant grow nearly 9% to $648.6 million but DIY sales lag during the quarter.
What the CEO said: “In The Americas Group, sales in all of our end markets, except DIY, were up double-digit percentages in the quarter, led by residential repaint. As expected, sales to our DIY customers were down double-digits, driven by difficult comparisons to the prior year as consumer demand returned to more normal levels. These lower North America DIY demand trends also impacted our Consumer Brands Group in the quarter. Supply chain constraints in the quarter impacted our architectural businesses similarly in The Americas and Consumer Brands Groups. In Performance Coatings Group, all divisions delivered strong double-digit growth, led by industrial wood and general industrial,” said John Morikis, chairman, president and CEO of Sherwin-Williams.
Company info:Click here to read the full second quarter 2021 report from Sherwin-Williams.