Several big-box retailers released second-quarter financials. Read on to see how these companies performed.
PPG
PPG reported a record second-quarter net sales of $4.7 billion, nearly 8% higher than the year before. The company also saw organic sales growth of 8%, driven by higher selling prices, which saw an increase of 15% on a two-year stack basis. Raw material costs were up 20% year over year. Reported earnings per diluted share from continuing operations (EPS) were $1.86 with an adjusted EPS of $1.81.
“For the seventh consecutive quarter, we delivered record quarterly sales driven by our continued implementation of real-time selling price increases to fully counter inflation and we benefitted from our recent acquisitions. Our sales growth was achieved despite softening consumer demand in Europe, significant COVID-19-related demand disruptions in China and unfavorable currency translation,” says Michael H. McGarry, PPG chairman and chief executive officer. “Looking ahead, in most major regions and end-use markets underlying demand for PPG products is expected to remain solid. Importantly, we expect that our sequential quarterly momentum on operating margin improvement will continue in the third quarter as we work back to our historical margins, and our adjusted earnings will increase on a year-over-year basis. Finally, I want to thank all our global employees who continue to demonstrate The PPG Way by partnering with our customers across the world to create mutual value, providing excellent service every day.”
Sherwin-Williams
For the Q2 of 2022, Sherwin-Williams recorded a consolidated net sales increase of 9.2% to $5.87 billion. Consolidated net sales increased primarily due to selling price increases in all segments, higher professional architectural sales volume in North American paint stores and higher sales volumes in our packaging and coil businesses.
Net sales from stores in the U.S. and Canada that were open for more than 12 calendar months increased 6.4% during Q2. Diluted net income per share decreased to $2.21 per share in the quarter compared to $2.42 per share in the second quarter of 2021.
“Demand remained strong during the second quarter in The Americas Group and the Performance Coatings Group, as both groups delivered sales within our guidance,” says chairman and chief executive officer John G. Morikis. “Speaking to trends in the business since our June 8th investor day, pro architectural demand in The Americas Group accelerated as the quarter progressed and has meaningfully strengthened further in July. Similarly, Performance Coatings Group demand remained strong through the quarter in North America, the Group’s largest region, and this strong demand has also continued into July. Conversely, the slower North America DIY demand trend we previously described in Consumer Brands Group did not improve and we experienced tight supply in certain resins, in particular alkyd resins, which significantly impacted our North America nonpaint sales.”
