In This Article:
-
Adjusted Earnings Per Share: Increased by 3.7% to $2.25 per share.
-
Share Repurchases: $352 million invested in share repurchases.
-
Dividend Increase: Dividend increased by 10%.
-
Paint Stores Group Sales: Grew by a low single-digit percentage; price/mix up by mid-single digits, volume down low single digits.
-
Segment Margin Expansion: Paint Stores Group margin expanded by 120 basis points to 18.4%.
-
New Store Openings: 18 new stores opened in the quarter.
-
Consumer Brands Group Sales: Within expected range; adjusted segment margin expanded to 21.3%.
-
Performance Coatings Group Sales: Below expectations; adjusted segment margin decreased by 60 basis points to 16.5%.
-
SG&A Expense: Decreased by a low single-digit percentage in Performance Coatings Group; down a mid-teens percentage in administrative functions.
Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Sherwin-Williams Co (NYSE:SHW) reported a 3.7% increase in adjusted earnings per share to $2.25.
-
The company expanded its gross margin and gross profit dollars, demonstrating effective cost management.
-
Sherwin-Williams Co (NYSE:SHW) increased its dividend by 10% and invested $352 million in share repurchases.
-
The Paint Stores Group saw sales growth driven by a mid-single-digit increase in price/mix.
-
The acquisition of Suvinil is expected to enhance the Consumer Brands Group, offering multiple profitable growth opportunities.
Negative Points
-
Consolidated sales were within the guided range but offset by softness in two segments.
-
Performance Coatings Group sales were below expectations, with declines in FX, price mix, and volume.
-
Commercial and property maintenance sales remained under pressure due to weak commercial construction and delayed CapEx spending.
-
The Consumer Brands Group experienced a sales decrease, partly due to unfavorable FX and soft DIY demand in North America.
-
Sherwin-Williams Co (NYSE:SHW) faces uncertainty in the market related to tariffs, which could impact raw material costs.
Q & A Highlights
Q: How does Sherwin-Williams view the impact of tariffs and potential raw material cost increases on pricing strategies for 2025? A: James Jaye, Senior Vice President of Investor Relations and Corporate Communications, explained that while tariffs are expected to slightly increase raw material costs, the impact is manageable. Allen Mistysyn, CFO, added that the company will consider price increases if tariffs persist, although they prefer not to raise prices during peak paint season unless necessary.