Demand for residential paint jobs – both for renovations and new homes – remained strong, and the industrial side of its business recovered faster than expected.
CEO John Morikis said in a statement Tuesday that sales were stronger than expected in the second quarter. leading the company to increase its sales and profit guidance for 2021. Full second quarter results for Sherwin-Williams will be released on July 27.
The stock, which was down slightly in pre-market, is up nearly 50% from last year.
Home sales hit a 14-year high in 2020, with the annual median price of an existing home hitting $ 296,500 according to a recent report – the highest price on record. While paint may add only a small portion of that, when added to other raw material costs, house prices aren’t cheaper.
According to an analysis by the National Association of Home Builders, soaring lumber prices have pushed up the price of an average new single-family home by $ 35,872.
The rising cost of paint is just the latest product forcing consumers to dig deeper into their wallets. A key measure of inflation, after excluding more volatile food and energy prices, hit a 29-year high in April. The Bureau of Economic Analysis price index that tracks U.S. consumer spending rose 3.6% in the year ending April, its biggest jump since September 2008 – the highest point of the financial crisis.