By Matt Grossman

The Sherwin-Williams Co. on Monday increased its sales guidance for the second quarter, citing greater-than-expected demand in its North American architectural business.

The Cleveland-based paint company now forecasts second-quarter sales to decrease year-over-year at a percentage rate in the middle single digits. It had previously forecast a decrease in the low to middle teens.

"[Do-it-yourself] growth in our stores remains strong, while our residential repaint and new residential segments have improved at a faster rate than our property management, new commercial and protective and marine segments," Chief Executive John G. Morikis said.

Mr. Morikis added that Sherwin-Williams' consumer-brands group continues to see unprecedented demand from retail partners, as consumers turn to house projects as they stay at home during the coronavirus pandemic.

On the other hand, demand has been variable for the company's performance-coatings group, and its automotive-refinish business has lagged as car use continues to be impaired during the pandemic, the company said.

Write to Matt Grossman at matt.grossman@wsj.com