Updated: Aug 2
Sherwin-Williams reported earnings last week; THE largest paint manufacturer in history announcing that sales had increased 6.3% during the second quarter as compared to the same period lkast year.
THE company adding that sales in stores opened for more than one year, increased 9.5%.
“Strong results!” Or at-least that's what Sherwin-Williams chief executive officer John Morikis wanted you to think as he gave his opening monologue.
A more conscienscious narrative of Sherwin's reality was delivered by others less shifty: “Consolidated net sales increased primarily due to selling price increases.”
And while it remained unclear during the webcast which Sherwin-Williams executive authorized such probity, it does seem clear who didn't!
Sherwin-Williams also reported that their gross profit margin reached a record 46% during the quarter, higher than most independents!
THE effects of price increases and significantly lower raw material costs, which the company forecasts to be down 5-9% this year.
I’m not expecting any price decreases!
In the crucial-to-dealers residential-repaint market segment, Morikis shared that his company’s sales had increased in the “high single digits” or roughly the rate of inflation.
To the extent that Sherwin-Williams stores are experiencing any real growth, its coming from the protective and marine and commercial and property maintenance divisions, both of which experienced growth in excess of the rate of inflation.
I'll have a podcast out with more detail as well as the earnings from PPG and Masco in the coming weeks.
Save THE Date
Recently, an international manufacturer of paint applicators and sundries hit up my digits asking what independents in North America would think of their products were they to be made available on these shores?
So, I suggested we ask them! And offered to host a focus group of independent paint retailers to allow that opportunity.
For a fee, of course. If you want my help for free, you need to be a resident of Fairfield County!
Focus group participants will receive a box of 14 applicators and sundries hand-selected to represent my client’s brand for the first time, including some items which are not likely to be familiar to North American dealers!
From the comfort of home via Zoom, participants will be asked to share their opinions of the products they’ve been. And because this a commercial venture, participants will get more than a penny for their thoughts!
Each participating dealer will receive a Visa $350 gift card complements of my client, themselves a family business and respectful of your time.
To participate, you must be either an independent paint retailer located in North America, or in the employ of an independent paint retailer with responsibilities for purchasing applicators and sundries.
At the conclusion of the event, I plan to stay on the call and talk paint, family and baseball with any dealers who care to loiter with me.
Scheduled for October 12, 2023 at 7 p.m. Eastern, THE focus group will represent the largest gathering of paint dealers since the last AllPro show.
Reserve your seat here!