DEWALT is the only tool manufacturer represented in Popular Science's 2024 Best of What's New Awards; this marks the sixth industry accolade DEWALT POWERSHIFT™ has received since its unveiling at World of Concrete in January 2024TOWSON, Md., Dec. 18, 2024 /PRNewswire/ -- DEWALT, a Stanley Black & Decker (NYSE: SWK) brand and leader in total jobsite solutions, today announced that the DEWALT POWERSHIFT™ system has been named one of the 50 greatest innovations in 2024 by Popular Science's Best of What's New A ...

Cost Reduction and Profitability - The company has implemented a multi-year global cost-reduction program aimed at resizing the organization, reducing inventory, and optimizing the supply chain to improve profitability and support long-term growth [1] - The program has generated approximately $1.4 billion in pre-tax run-rate savings and reduced inventory by over $2 billion since its inception in mid-2022 [2] - The company expects to achieve $2 billion in pre-tax run-rate cost savings by the end of 2025 and aims for an adjusted gross margin of over 35% in the long term [2] Strategic Acquisitions - The company acquired two major providers of outdoor power equipment (MTD Holdings and Excel Industries) for $1.9 billion in December 2021, enhancing its cordless electric outdoor power equipment offerings [3] - These acquisitions strengthen the company's position in the outdoor products market, which is valued at approximately $25 billion, driven by the growing popularity of home and outdoor products and electrification trends [3] Shareholder Returns - The company paid $367.2 million in dividends in the first nine months of 2024, a 1.8% year-over-year increase, and repurchased shares worth $10 million during the same period [4] - In July 2024, the company increased its dividend by $0.01 to $0.82 per share, resulting in an annual dividend of $3.28 per share [4] Market Challenges - The Tools & Outdoor segment is facing weakness due to a soft DIY market and declining demand for power tools [5] - The Industrial segment is experiencing challenges due to the divestiture of the infrastructure business and softness in the automotive end market, driven by headwinds in global automotive OEM light vehicle production and constrained capex spending [5] Rising Expenses - The company is dealing with escalating expenses as it increases investments in innovation and growth initiatives, leading to higher SG&A expenses [6] - In the first nine months of 2024, SG&A expenses rose by approximately 1% year-over-year and increased by 90 basis points as a percentage of total revenues, reaching 21.2% [6] Stock Performance - The company's stock has declined by 14.9% over the past year, underperforming the industry's 3.5% growth [6]

Stanley Black & Decker (SWK 0.11%) is a tool-maker titan. It owns well-known brands DeWalt, Craftsman, Irwin, and LENOX, and, of course, Stanley and Black & Decker. But the stock has been in the doghouse. It's down 61.7% from its all-time high (reached in 2021) and up less than 21% from its 10-year low reached on March 19, 2020, during the height of the COVID-19-induced stock market plunge.The sell-off may come as a surprise, since Stanley Black & Decker is a Dividend King with a 3.9% yield and 56 consecuti ...

NEW BRITAIN, Conn., Dec. 5, 2024 /PRNewswire/ -- Stanley Black & Decker (NYSE: SWK), a leading manufacturer of outdoor power equipment, wants to help property owners gear up for winter with snow removal tips and product recommendations from its iconic DEWALT®, CRAFTSMAN®, Cub Cadet®, and Troy-Bilt® brands.Experience the full interactive Multichannel News Release here: https://www.multivu.com/stanley-black-and-decker/9238156-en-stanley-black-and-decker-snow-removal-tips DEWALT® 21'' 208cc Single Stage Au ...

Summary of Stanley Black & Decker, Inc. Conference Call Company Overview - **Company**: Stanley Black & Decker, Inc. (NYSE: SWK) - **Industry**: Multi-Industry, focusing on tools and outdoor products, as well as industrial fasteners Key Points from the Conference Call Transformation and Growth Strategy - The company is on a transformation journey initiated in late 2022, aiming to complete it by 2025 and pivot towards growth [3][6] - The portfolio has been refocused, with divestitures including the security, oil and gas, and outdoor businesses, resulting in a revenue base of approximately **$15.25 billion** [4][5] - The tools and outdoor segment generates about **$13 billion** in revenue, with DEWALT being the largest brand at nearly **$7 billion** [4] Financial Performance and Projections - The company expects to finish the year with a **30% gross margin**, aiming for **35%** by the end of next year [5][13] - Inventory is projected to be reduced by **$2.2 billion**, and debt by **$2 billion** [6] - Long-term financial outlook includes mid-single-digit growth in a low single-digit market, with expectations of **$900 million to $1 billion** EBITDA expansion over three years [7][23] Investment Focus - Investments are being made in product innovation, brand building, and field support, particularly for the brands DEWALT, Stanley, and Craftsman [6][24] - The company is focusing on enhancing product innovation and marketing strategies to drive organic growth [29] Market Dynamics and Challenges - The company is navigating a weak demand environment, particularly in the DIY segment, which is currently below 2019 levels [38] - Interest rates and macroeconomic conditions are critical factors influencing growth, with a target of keeping the 10-year rate below **4%** to aid recovery [21] Tariffs and Supply Chain Management - The company is reducing reliance on China, with current COGS from China at **20% to 25%**, down from **40% to 45%** [56][57] - Tariff dynamics are expected to impact the pace of margin improvement but are manageable within the company's strategic framework [63] Divestitures and Acquisitions - The company plans to divest assets generating over **$500 million** to improve its balance sheet, targeting a net debt to EBITDA ratio below **2.5 times** by the end of 2025 [44][45] - Future M&A activities are anticipated post-balance sheet stabilization, focusing on enhancing organic capabilities before pursuing acquisitions [49] Brand and Market Positioning - DEWALT has shown strong growth potential, while DIY brands like Craftsman are being repositioned to enhance performance [27][29] - The company is expanding its presence in Europe and Latin America, with significant investments in the Middle East for infrastructure projects [36] Conclusion - Stanley Black & Decker is committed to a strategic transformation aimed at growth, with a focus on improving margins, reducing debt, and enhancing brand performance in a challenging macroeconomic environment [12][30]

I have over 15 years of experience investing and have provided research services to mid-sized hedge funds with assets under management between $100 and $500 million. I also have had a brief stint as a sell-side analyst. I am now focusing primarily on managing my own money and my purpose here is to share my views and benefit from the insights of the Seeking Alpha user community. Feel free to provide your feedback on my thesis in the comment section and I would love to have a discussion even if you have a var ...

Stanley Black & Decker, Inc. (SWK) has been benefiting from its cost-reduction program, which is expected to aid the bottom line and drive margins. The program comprises a series of initiatives to resize the organization, reduce inventory and optimize the supply chain for pursuing sustainable long-term growth.Since its inception in mid-2022, this program has generated roughly $1.4 billion in pre-tax run-rate savings and reduced inventory by more than $2 billion. SWK expects to generate pre-tax run rate savi ...

Summary of Stanley Black & Decker Conference Call Company Overview - **Company**: Stanley Black & Decker (NYSE: SWK) - **Industry**: Tools and Building Products - **Key Brands**: DEWALT, CRAFTSMAN, STANLEY Core Points and Arguments 1. **Tariff Impact**: - Tariffs imposed since 2017 have cost the company approximately $300 million annually, which has been mitigated to about $100 million currently [5][6][10] - Potential increase in tariffs from 25% to 60% could add an additional $200 million in annualized expenses [7] - The company is proactively planning for potential tariff increases, including supply chain adjustments and pricing strategies [8][9] 2. **Gross Margin Goals**: - The leadership team aims to return to a gross margin of over 35%, which was achieved prior to COVID-19 [9][31] - Current challenges include volume headwinds and inflation in ground freight costs, which may delay achieving this target until 2026 [30][32] 3. **Investor Day Focus**: - Upcoming Investor Day will discuss earnings potential beyond 2025, growth strategies for key brands, and introduce the new leadership team [14][15] 4. **Sales and Market Dynamics**: - The Tools & Outdoor segment is not yet seeing broad-based growth, but there are signs of improvement in market conditions [16] - Low inventory levels across channels may provide a pivot point for sales growth [17] 5. **Brand Performance**: - DEWALT has shown consistent growth over the last six quarters, even in a down market [34] - STANLEY is recognized as a global brand but requires innovation and brand revitalization to improve its market position [35][36] - CRAFTSMAN is positioned as a high-quality DIY brand with plans for focused innovation [37][38] 6. **Organizational Changes**: - The company is shifting towards organic growth, focusing on three major brands and restructuring leadership to support this strategy [21][22] - Complexity reduction initiatives are ongoing, including SKU reduction and better integration of value chains across brands [24][25] 7. **Battery Systems Strategy**: - The company emphasizes the importance of battery systems as part of their product offering, but also highlights the need for improvements in productivity, safety, and durability [42][43] 8. **Financial Management**: - The company aims to reduce inventory days from approximately 155 to 130, targeting an annual inventory reduction of $300 million to $500 million [46] - Plans to reduce net debt to EBITDA ratio below 2.5x, potentially through divestitures [48][49] 9. **Competitive Landscape**: - The company is gaining market share, particularly with DEWALT, while facing competition from TTI and private label brands [53] Other Important Content - The company is preparing for potential economic and political noise during the upcoming Investor Day [14] - The leadership team is focused on long-term strategies to enhance brand health and market competitiveness [38][39] - The industrial business segment generates over $2 billion in revenue, with a significant portion coming from automotive fasteners [51]

Financial Performance - Total revenue reached $3.8 billion, a decrease of 5% year-over-year, with organic revenue down by 2%[3] - Adjusted gross margin improved to 30.5%, up 290 basis points compared to Q3 2023, driven by supply chain transformation[3, 4, 10] - Adjusted EPS was $1.22[3, 4] - Cash from operating activities amounted to $286 million, and free cash flow was approximately $200 million[4] Cost Savings and Transformation - Pre-tax run-rate cost savings reached $105 million in Q3 2024, with a program-to-date total of $1.4 billion[3, 7] - The company is on track for expected $2.0 billion pre-tax run-rate cost savings by the end of 2025[7] Segment Performance - Tools & Outdoor segment revenue was $3.263 billion, down 3% year-over-year, with a 2% decline in organic revenue and an adjusted segment margin of 11.1%[5] - Industrial segment revenue was $488 million, down 18% year-over-year, with a 1% decline in organic revenue and an adjusted segment margin of 13.9%[5] Guidance and Outlook - The company narrowed its GAAP EPS range to $1.15 to $1.75 and adjusted EPS range to $3.90 to $4.30, reiterating free cash flow of $650 million to $850 million[4, 12] - The company expects approximately 30% full year 2024 adjusted gross margin[10] Liquidity - The company has $0.3 billion cash on hand and $3.1 billion additional commercial paper capacity[16]

Financial Performance - Net sales for Q3 2024 were $3,751.3 million, a decrease of 5.1% compared to $3,953.9 million in Q3 2023[1] - Gross profit increased to $1,120.6 million, representing 29.9% of net sales, up from 26.8% in the same quarter last year[1] - Net earnings from continuing operations were $91.1 million, compared to $4.7 million in Q3 2023, reflecting a significant improvement[1] - Year-to-date net sales for 2024 reached $11,645.2 million, down from $12,044.6 million in the same period of 2023[7] - Year-to-date net earnings from continuing operations for 2024 were $91.4 million, down from $433.7 million in 2023[12] Cash Flow and Assets - The company reported a free cash flow of $199.3 million for Q3 2024, down from $364.0 million in Q3 2023[5] - Total assets decreased to $22,481.8 million as of September 28, 2024, from $23,663.8 million at the end of 2023[3] - Short-term borrowings significantly reduced to $387.4 million from $1,074.8 million at the end of 2023[3] - Total current liabilities decreased to $5,292.3 million from $5,883.2 million at the end of 2023[3] Earnings and Profitability - The company’s diluted earnings per share from continuing operations was $0.60, compared to $0.03 in the same quarter last year[1] - Diluted earnings per share for continuing operations in Q3 2024 were $0.60, compared to $0.03 in Q3 2023, reflecting a significant improvement[9] - Total segment profit for Q3 2024 was $397.7 million, compared to $335.9 million in Q3 2023, with an overall profit margin of 10.6%[7] - Tools & Outdoor segment profit for year-to-date 2024 is $1,010.3 million, up from $568.5 million in year-to-date 2023, representing a 77.7% increase[20] - Total segment profit for year-to-date 2024 is $1,028.3 million, an increase from $604.0 million in year-to-date 2023, reflecting a growth of 70.3%[20] Segment Performance - Tools & Outdoor segment reported net sales of $3,263.3 million, down from $3,355.3 million year-over-year, while Industrial segment sales fell to $488.0 million from $598.6 million[7] - Segment profit for Tools & Outdoor increased to $327.5 million in Q3 2024, up from $273.4 million in Q3 2023, representing a profit margin of 10.0%[7] - Industrial segment profit for year-to-date 2024 is $205.6 million, compared to $220.8 million in year-to-date 2023, showing a decrease of 6.9%[20] - Segment profit as a percentage of net sales for Tools & Outdoor increased to 10.0% in year-to-date 2024 from 5.6% in year-to-date 2023[20] Adjustments and Charges - Non-GAAP adjustments for Q3 2024 included $39.9 million, leading to a total adjusted segment profit of $363.4 million[16] - Asset impairment charges were $46.9 million in Q3 2024, down from $124.0 million in Q3 2023[1] - Asset impairment charges in 2024 include a $41.0 million pre-tax impairment charge related to the Lenox trade name[26] - Environmental charges in 2024 amount to $152.1 million, primarily due to reserve adjustments for the Centredale Superfund site[26] Strategic Focus - The company expects continued focus on supply chain transformation and cost management strategies to enhance profitability moving forward[16] - The company anticipates continued improvements in operational excellence and strategic sourcing initiatives to enhance profitability moving forward[22] - Supply chain transformation costs for year-to-date 2024 include $57.8 million in footprint rationalization, down from $88.3 million in year-to-date 2023[25] EBITDA - Adjusted EBITDA for year-to-date 2024 is $1,178.3 million, compared to $787.7 million in year-to-date 2023, marking a 49.5% increase[24]