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International paint purveyor Sherwin-Williams cut its per-share earnings outlook for 2022 from around $9.50 a share to around $8.65, although it reported higher sales in terms of dollar volumes in its second quarter.
The company’s share price dropped as much as 13.2 percent on the news, but later recovered to end down 8.8 percent on 27 July.
“Raw material costs have not yet moderated,” the company said in announcing the cut, and promised “aggressive actions throughout the second half of the year” to protect its margins.
The company also complained of lingering supply chain tangles.
Sherwin-Williams will raise retail prices 10 percent in Latin America on 6 September and will boost prices elsewhere as well, the announcement said, but did not disclose the increase or its schedule.
TRENDPOST: The company’s results indicate a slowing in the home improvement and do-it-yourself markets, which thrived during the COVID War as people had free government money but fewer ways to spend it.
Now, with inflation forcing people to divert money to food, fuel, and other essentials, sprucing up homes will remain less of a priority for the foreseeable future.