The Sherwin-Williams Company increased its net sales guidance for the second quarter of 2020. The Company now expects second-quarter 2020 consolidated net sales to decrease by a mid-single-digit percentage compared to the second quarter of 2019. The Company’s prior guidance, issued April 29, 2020, was for second-quarter 2020 consolidated net sales to decrease by a low to mid-teens percentage compared to the second quarter of 2019.
On a segment basis, second-quarter net sales in The Americas Group are expected to be down by a high-single-digit percentage compared to the previous guidance of down by a low-double-digit to mid-teens percentage. Net sales in the Consumer Brands Group are expected to be significantly above the high end of the previous guidance of up by a high-single-digit to low-double-digit percentage. Net sales in the Performance Coatings Group are expected to be in line with the previous guidance of down by a high-teens percentage.
“Our employees have performed admirably during this challenging time to meet our customers’ needs,” said Chairman and Chief Executive Officer, John G. Morikis. “We are raising our second quarter sales guidance given our ability to capture and serve greater than expected demand in our North American architectural businesses.
“We are encouraged by the sequential improvement in all three of our business segments during the second quarter. In The Americas Group, we rapidly adapted to the pandemic by implementing curbside pickup in our stores, utilizing our fleet of over 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. 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. In the Consumer Brands Group, the unprecedented demand from most of our retail partners has 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 our strongest performer, while demand in our coil business has been choppy following the slower reopening of many commercial construction projects. Our 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.
“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.”
The Company is scheduled to release second quarter 2020 financial results on July 28, 2020, at which time it will provide its outlook on third quarter sales and update its full year sales and earnings per share guidance.
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