Sherwin-Williams Q3: Strong Paint Store Sales Dampened By Weak Consumer Demand, Guides Sluggish Q4 Sales

The Sherwin-Williams Company (NYSE:SHW) shares are trading lower after the company reported third-quarter adjusted EPS and sales below analyst estimates.

Quarterly revenue rose 0.7% to $6.16 billion, missing the analyst consensus of $6.20 billion. 

Revenue benefitted from the higher sales in the Paint Stores and the impact of the acquisition in 2023, partly offset by lower sales in the Consumer Brands and Performance Coatings Groups.

Net sales in Paint Stores Group rose 3.2%, driven by low-single-digit growth in sales volume and the continued impact of higher selling prices introduced earlier in the year.

Quarterly gross profit increased to $3.028 billion from $2.92 billion a year ago. Gross margin in the quarter expanded to 49.1 % from 47.7% a year ago.

Adjusted earnings per share of $3.37 missed the Wall Street view of $3.54.

The company returned cash of $1.97 billion to shareholders in the form of dividends and repurchases of 4.4 million ...