The COVID-19 pandemic closed many of its stores in April and May, but Sherwin-Williams (NYSE:SHW) still managed to post strong overall second-quarter results.
The paint products giant said on Tuesday morning that global revenue declined 6% for the period, which captures the selling months of April, May, and June that roughly correspond to the most impacted days to date on consumer shopping behavior. COVID-19-related closures pushed sales lower as most of its retailing stores dramatically scaled back their services.
However, a spike in demand from its retailing partners offset much of that decline. In fact, sales to its U.S. retailing network jumped 21% as consumers turned their attention to home upgrades. CEO John Morikis said the boost amounted to "unprecedented demand for architectural DIY paint" in the U.S. division. The growth also helped push profitability significantly higher.
Sherwin-Williams responded to the improving trends by lifting its outlook. The company now sees sales this year landing at about the same level as they did in 2019. Management also boosted its earnings target, with profit now predicted to land between $19.21 per share and $20.71 per share, up from the prior range of $16.46 per share to $18.46 per share.