The Sherwin-Williams Company announced its financial results for the second quarter ended June 30, 2023. All comparisons are to the second quarter of the prior year, unless otherwise noted.
Summary
- Consolidated net sales increased 6.3% in the quarter to a record $6.24 billion
- Net sales from stores in U.S. and Canada open more than twelve calendar months increased 9.5% in the quarter
- Diluted net income per share increased 38.9% to $3.07 per share in the quarter compared to $2.21 per share in the second quarter 2022
- Adjusted diluted net income per share increased 36.5% to $3.29 per share in the quarter compared to $2.41 per share in the second quarter 2022
- Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) increased 31.4% to $1.28 billion in the quarter and was 20.6% of net sales
- Increasing full year 2023 diluted net income per share guidance to a range of $8.46 to $8.86 per share, including acquisition-related amortization expense of $0.81 per share and restructuring expense of $0.03 per share
- Increasing full year 2023 adjusted diluted net income per share guidance to a range of $9.30 to $9.70 per share
CEO Remarks
"Our team delivered very strong results in the second quarter, as sales exceeded expectations in all three segments," said Chairman and Chief Executive Officer, John G. Morikis. "My thanks goes to our 64,000 employees, who continue to execute on our strategy of providing unique and differentiated value, service and solutions for our customers. Gross margin improved sequentially and year-over-year to 46%, driven by strong sales volume in our Paint Stores Group as well as moderating raw material costs. We leveraged the strong sales growth to drive solid margin expansion across all our segments, while also investing in growth initiatives that will propel sustained future performance. In addition, we delivered strong double digit percentage growth in earnings per share and EBITDA. We generated strong cash flow and continued our disciplined approach to capital allocation, including returning $849 million to shareholders through dividends and share repurchases year to date.
"In our reportable segments, growth in our Paint Stores Group was led by double digit percentage growth in protective and marine, commercial and property maintenance. Residential repaint sales were up a high-single digit percentage. New residential sales were flat, as completions slowed as expected. Sales in our Consumer Brands Group increased by a low-single digit percentage in North America and a strong double digit percentage in Latin America and Europe. In the Performance Coatings Group, our Automotive Refinish business grew by a high-single digit percentage. We also generated growth in our General Industrial and Industrial Wood businesses. Coil and Packaging sales were down against very difficult comparisons."
The results can be viewed here. A PowerPoint overview can be viewed here.
