Sherwin-Williams revises Q2 sales guidance
The Sherwin-Williams Company has revised its guidance for the second quarter of 2020, with the paint and coatings manufacturer saying it will not take as big of a sales hit as previously expected.
The manufacturer reported that it now expects second quarter 2020 consolidated net sales to decrease by a mid-single-digit percentage compared to the second quarter of 2019.
Sherwin-Williams’s prior guidance, issued April 29, called for consolidated net sales to decrease by a low to mid-teens percentage.
“We are encouraged by the sequential improvement in all three of our business segments during the second quarter,” said Chairman and CEO John Morikis.
According to Morikis, in its Americas Group, Sherwin-Williams rapidly adapted to the pandemic by implementing curbside pickup in our stores, utilizing a fleet of more than 3,000 delivery vehicles, and leveraging our e-commerce platform.
“We have gradually and safely reopened nearly all of our sales floors over the last month,” he said, “DIY growth in our stores remains strong, while our residential repaint and new residential segments have improved at a faster rate than our property management, new commercial, and protective and marine segments.”
Morikis also noted that sales in the company’s Consumer Brands Group have remained robust, driven by consumers who are nesting during the pandemic and focused on DIY projects.
In the Performance Coatings Group, demand has been variable by end market and geography. Packaging remains Sherwin-Williams’ strongest performer, while demand in its coil business has been choppy following the slower reopening of many commercial construction projects.
The company’s automotive refinish business remains under pressure as driving trends have not yet returned to pre-pandemic levels. Recovery remains sluggish in our general industrial and industrial wood businesses,” Morikis said.
"Although uncertainties in the timing and pace of improvement in the U.S. and global operating environments continue, we remain confident in our ability to successfully manage through these challenging conditions while continuing to invest and execute on initiatives that will drive our long-term growth."