Please ensure Javascript is enabled for purposes of website accessibility

Sherwin-Williams Says It Saw ‘Unprecedented’ Demand for DIY Paint Products in Q2

By Demitri Kalogeropoulos - Jul 28, 2020 at 10:23AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The paint giant just boosted its 2020 sales and profit outlook.

The COVID-19 pandemic closed many of its stores in April and May, but Sherwin-Williams (SHW 1.14%) 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.

A couple paints a room together.

Image source: Getty Images.

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.

Demitrios Kalogeropoulos owns shares of Sherwin-Williams. The Motley Fool recommends Sherwin-Williams. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

The Sherwin-Williams Company Stock Quote
The Sherwin-Williams Company
SHW
$239.78 (1.14%) $2.70

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
377%
 
S&P 500 Returns
123%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/08/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.