Several major big-box retailers and manufacturers recently released financial results. Here’s a look at how each performed in the last quarter of the fiscal year and fiscal year 2021.
PPG
PPG shared its financial results for the fourth quarter of 2021 and full year 2021, reporting increases in several categories, including a record fourth quarter sales of $4.2 billion, nearly 12 percent higher than last year during the same period. The company reported earnings per diluted share (EPS) of $1.12 and adjusted EPS of $1.26.
The company experienced organic sales growth of nearly 4 percent, led by higher selling prices. Continuing supply disruptions and increased manufacturing interruptions negatively impacted sales and operating costs, and raw material cost inflation was up 30 percent year over year in the fourth quarter.
Looking at fiscal year 2021, sales hit $16.8 billion, aided by 10 percent organic growth.
“Looking ahead, while demand for PPG products remains strong, the heightened supply and COVID-related disruptions experienced in the fourth quarter are expected to continue in the first quarter of the year impacting our ability to manufacture and deliver product,” says Michael H. McGarry, PPG chairman and chief executive officer. “As I reflect on 2021, I am very proud and appreciative of our employees who helped navigate many challenges during the past year and provided excellent service to our customers. Operationally, this was a very difficult year, and it was through their perseverance and dedication to living our values through The PPG Way that we were able to deliver record full-year net sales and adjusted earnings per share. Strategically, we made progress in strengthening the company with the successful integration of five acquisitions and further optimizing our cost structure including $135 million of cost savings from our restructuring programs.”
Sherwin-Williams
The Sherwin-Williams Company reported its 2021 year-end and fourth quarter financial results, which showed increases nearly across the board. Consolidated net sales for the year increased 8.6 percent to a record $19.9 billion, and net sales from stores in the U.S. and Canada open more than 12 months increased 6 percent. Availability issues with raw materials negatively affected full-year sales, and diluted net income per share was down to $6.98 per share, compared to $7.36 in 2020.
For Q4 2021, consolidated net sales improved 6.1 percent with a diluted net income per share of $1.15 and adjusted diluted net income per share of $1.34.
“Our full year and fourth quarter were marked by industry-wide supply chain disruptions, unprecedented cost inflation and ongoing challenges related to the pandemic,” says chairman, president and chief executive officer John G. Morikis. “The 61,000 dedicated employees of Sherwin-Williams refused to use these challenges as an excuse, but rather as an opportunity to get even closer to our customers. We focused on minimizing the impact to their businesses through innovation, value-added services and differentiated distribution.”
Lowe’s
In Q4 2021, Lowe’s reported net earnings of $1.2 billion and diluted earnings per share (EPS) of $1.78, a jump over the net earnings for during the fourth quarter of 2020, which were $978 million. Total sales for Q4 topped $21.3 billion compared to $20.3 billion in 2020.
Consolidated comparable sales increased 5 percent. U.S. comparable sales jumped 5.1 percent, and pro customer sales were up 23 percent. The U.S. comparable sales increase over a two-year basis was 35.2 percent.
The company awarded a discretionary year-end bonus of $265 million to front-line associates to recognize their hard work during pandemic.
“We delivered another year of outstanding performance in 2021, as we gained market share across DIY and pro through our Total Home strategy. I would like to thank our front-line associates for their tremendous efforts this year,” says Marvin R. Ellison, Lowe’s chairman, president and CEO. “In 2021, we increased comparable sales by 6.9 percent while generating over 170 basis points of operating margin improvement with our relentless focus on productivity and enhanced pricing strategies. We remain confident in the long-term strength of the home improvement market and our ability to expand operating margin.”
Home Depot
The Home Depot released numbers for both Q4 and fiscal year 2021, showing sales for the fourth quarter at $35.7 billion, an increase of 10.7 percent over Q4 2020. Comparable sales for Q4 increased 8.1 percent, and comparable sales in the U.S. increased 7.6 percent. Net earnings were $3.4 billion, up from the $2.9 billion in net earnings from the previous year.
For fiscal year 2021, sales were $151.2 billion, up 14.4 percent. Comparable sales increased 11.4 percent, and comparable sales in the U.S. jumped 10.7 percent. In 2021, net earnings reached $16.4 billion, up from $12.9 billion in 2020.
“Fiscal 2021 was another record year for The Home Depot. We achieved a milestone of over $150 billion in sales,” says Craig Menear, chairman and CEO. “Our ability to grow the business by over $40 billion in the last two years is a testament to investments we have made in the business, our ability to execute with agility, and our associates’ relentless focus on our customers. I would like to thank all of our associates, as well as our supplier partners, for their hard work and dedication to serving our customers, communities and each other.”
