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Risk Management

The surprise earnings winners of recent extreme weather

Bad weather was good news for sellers of swimsuits and airplane sensors.
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John Finney Photography/Getty Images

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CFO Brew helps finance pros navigate their roles with insights into risk management, compliance, and strategy through our newsletter, virtual events, and digital guides.

The late summer sun blazing down on us might make it hard to remember what the weather was like a few months ago.

A refresher: This April through July was, meteorologically speaking, pretty gnarly. Billion-dollar weather disasters hit the US at a near-weekly rate and June was the second-hottest in at least 130 years, according to the National Oceanic and Atmospheric Administration (NOAA).

We were reminded just how hot and extreme the weather got over the quarter as companies have recently been reporting on their earnings. But what surprised us wasn’t the damage caused by that weather—just the opposite. We actually came across a number of companies helped by the high temps and big storms.

Burlington Stores. The brand formerly known as a coat factory sold more sandals, swimwear, and other hot-weather items than normal in the second quarter as temperatures soared in May and June. CEO Michael O’Sullivan estimated that the increase boosted same-store sales growth by one to two points. “I think the weather has probably helped most apparel retailers in Q2,” he told investors.

Flyht Aerospace Solutions. The Canadian maker of weather sensors for planes is selling more of them as “fly the friendly skies” applies less and less to the conditions up there. On Flyht’s earnings call, chief revenue officer Darrel Deane highlighted a recent order of sensors from none other than NOAA.

OG&E. Hot weather sells more swimsuits and more AC. Oklahoma’s largest provider of electricity saw its second-quarter earnings per share jump 16% from 2023, which CFO Bryan Buckler said was “primarily driven by exceptional load growth and warmer than normal weather.”

Lowe’s. The home improvement company “drove strong results in some hot weather categories, like air circulation and HVAC,” according to merchandising EVP Bill Boltz, whose surname is somehow only the second-most industry appropriate among Lowe’s execs. But while the weather giveth, it also taketh away. Cold, wet weather in May and super hot weather in June and July each hurt sales for seasonal products and supplies for outdoor projects like painting and decking, CFO Brandon Sink said. (And now you know who has the most home improvement-y name.)

News built for finance pros

CFO Brew helps finance pros navigate their roles with insights into risk management, compliance, and strategy through our newsletter, virtual events, and digital guides.