The U.S. housing sector is stuck in the dumps, but people apparently have enough money to spend on painting their homes inside and out. It’s not surprising, really. Unable to move or buy new, people are fixing up what they have, and paint is the cheapest fixer-upper known to man.
In the first quarter, paint-brand giant Sherwin-Williams (SHW) reported that consolidated net sales increased 18.5 percent to $1.9 billion on selling-price increases as well as through recent acquisitions, which are starting to produce revenue.
Do-it-yourself (DIY) shoppers in the United States also helped to fuel growth.
"Although domestic demand remains soft, we are encouraged by the improvement in domestic DIY and protective and marine sales in the paint stores group and continued growth in architectural, protective and marine, OEM and automotive finishes sales," Chairman and Chief Executive Officer Christopher M. Connor says in an earnings release.
"For the second quarter, we anticipate that our consolidated net sales will increase 8 to 13 percent compared to last year's second quarter," Connor says, adding Sherwin-Williams will open 50 to 60 new stores this year.
Primed and ready
Analysts praise the company. "Each of the business divisions of Sherwin-Williams has reaped benefits and will continue to do so, backed by the improving domestic and international markets, rising product prices, successful acquisitions along with the company’s cost reduction efforts," Zacks Equity Research reports.
The company, however, isn't immune the rising costs of inputs, Zacks warned.
© 2017 Newsmax Finance. All rights reserved.