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Jun 30, 2020
Sherwin-Williams Q2 2020 Earnings Report
Sherwin-Williams' financial results for Q2 2020 were announced, with net sales decreasing due to COVID-19 impacts, but diluted net income per share increasing.
Key Takeaways
Sherwin-Williams reported a decrease in consolidated net sales by 5.6% to $4.60 billion due to COVID-19 impacts, but diluted net income per share increased to $6.48. Adjusted EBITDA increased 6.2% to $979.0 million.
Consolidated net sales decreased 5.6% to $4.60 billion.
Net sales from stores in U.S. and Canada open more than twelve calendar months decreased 6.9%.
Diluted net income per share increased to $6.48 compared to $5.03 in Q2 2019.
Adjusted EBITDA increased 6.2% to $979.0 million, or 21.3% of sales.
Revenue by Segment
Forward Guidance
The company anticipates sequential improvement in demand for the third quarter compared to the second quarter with demand softness continuing in some end markets in the U.S. and global environments for the remainder of 2020. For the full year 2020, the company now expects full year consolidated net sales will be approximately flat to last year and increasing diluted net income per share guidance for 2020 to be in the range of $19.21 to $20.71 per share.
Positive Outlook
- Anticipate sequential improvement in demand for Q3 compared to Q2.
- Expect full year consolidated net sales will be approximately flat to last year.
- Increasing diluted net income per share guidance for 2020 to be in the range of $19.21 to $20.71 per share.
- Gross margin expanded 330 basis points to 48%.
- Teams adjusted quickly to meet customer demand while we temporarily shifted to curbside pickup and delivery, and delivered better than expected sales and profit results with sequential improvement through the quarter.
Challenges Ahead
- Demand softness continuing in some end markets in the U.S. and global environments for the remainder of 2020.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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