Stanley Black & Decker’s First Quarter 2024 Performance Overview

Stanley Black & Decker, a global leader in tools and outdoor equipment, released its financial results for the first quarter of 2024 today.

Key Highlights:

  • First quarter revenues amounted to $3.9 billion, marking a 2% decrease compared to the previous year. While DEWALT and Engineered Fastening sectors experienced growth, this was offset by lower infrastructure volume and subdued consumer and DIY demand.
  • Gross margin for the quarter stood at 28.6%, reflecting a significant increase of 740 basis points compared to the prior year. Adjusted gross margin reached 29.0%, up by 590 basis points from the previous year.
  • GAAP EPS for the first quarter was $0.13, while adjusted EPS was $0.56.
  • The divestiture of STANLEY Infrastructure was completed on April 1, with net proceeds utilized to reduce short-term debt.
  • The company reaffirmed its full-year 2024 guidance, expecting GAAP EPS to range between $1.60 and $2.85, adjusted EPS between $3.50 and $4.50, and free cash flow to be approximately $0.6 billion to $0.8 billion.

Donald Allan, Jr., President & CEO of Stanley Black & Decker, commented on the performance, highlighting consistent execution and progress against operational objectives. Allan emphasized the company’s focus on disciplined strategy execution and anticipates mixed demand trends across businesses in 2024.

Strategic Focus:

  • Advancing innovation, electrification, and global market penetration to achieve organic revenue growth of 2 to 3 times the market.
  • Streamlining and simplifying the organization while investing in customer-centric initiatives.
  • Returning adjusted gross margins to historical levels exceeding 35%.
  • Prioritizing cash flow generation and inventory optimization.

Segment Results:

  • Tools & Outdoor segment saw a 1% decline in net sales compared to the previous year, attributed to muted market demand. However, segment margin increased significantly.
  • Industrial segment experienced a 5% decrease in net sales due to lower volume, offset by price increases. Segment margin also improved.

Cost Reduction Program:

The company is executing initiatives aimed at generating $1.5 billion in pre-tax cost savings by the end of 2024, growing to $2 billion by the end of 2025. These initiatives focus on supply chain transformation, operational excellence, and portfolio simplification.

2024 Outlook:

Patrick D. Hallinan, Executive Vice President and CFO, emphasized the company’s disciplined cost management approach and commitment to achieving target adjusted gross margins. Management reiterated its guidance for 2024.

Non-GAAP Adjustments:

Total pre-tax non-GAAP adjustments in the first quarter of 2024 amounted to $71.5 million, primarily related to supply chain transformation and restructuring costs.

Earnings Webcast:

A webcast with investors is scheduled for May 2, 2024, at 8:00 am ET. The presentation will be available on the company’s website.

Overall, Stanley Black & Decker remains focused on delivering long-term growth, profitability, and value creation for shareholders through strategic execution and innovation.

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