Analyst Note| Brian Bernard, CFA, CPA |
While concerns about housing affordability have been growing, demand for new and existing homes remains robust in the Unites States and elevated repair and remodel spending has persisted. Given this backdrop, we expected Fortune Brands to report strong second-quarter results, but the narrow-moat rated firm exceeded our expectations. Second-quarter reported revenue was 41% higher than the year-ago quarter (32% organic growth) and 28% above second-quarter 2019 revenue (21% organic). All three of the firm's segments--plumbing, cabinets, and outdoors and security--reported at least 30% year-over-year growth.