Stanley Black & Decker on Wednesday reported first-quarter sales that exceeded projections, but the tool maker also conceded that it expects tariffs to dent its earnings over the full year.
The company posted revenues of $3.7 billion during the quarter. Although the overall total was down 3% compared to the same quarter last year, officials noted that organic revenue was up — offset by effects of currency and the sale of its infrastructure division. Quarterly gross margin, meanwhile, increased year-over-year.
Stanley President and CEO Donald Allan highlighted a “solid” first quarter and said in the company’s earnings release that it was “accelerating adjustments to our supply chain and exploring all options” to minimize the effect of tariffs. The company implemented an “initial” price increase this month and notified customers that “further price action is required.” Another increase is set to take effect at the start of the fiscal third quarter.
The company said that it expects tariffs to reduce earnings by $0.75 per share over the full fiscal year. Under that scenario, 2025 earnings per share would come in at $3.30 — give or take $0.15 per share — or approximately $4.50 on an adjusted basis.
Patrick Hallinan, the company’s chief financial officer, said that the company is remaining nimble and planning for “a range of scenarios” amid a “dynamic environment with reduced visibility.”
“We intend to implement pricing actions judiciously to preserve our long term margin journey and our ability to continue to meet the needs of our end users, while we respond decisively with operational and supply chain initiatives,” Hallinan said.