By Dean Seal
Stanley Black & Decker said it raised prices in April to offset the effect of tariffs and will do so again later this year.
The maker of DeWalt power tools and Craftsman wrenches said Wednesday that the global tariff war kicked off by President Trump is expected to dent its full-year earnings per share by about 75 cents, based on the timing of its mitigation countermeasures.
The company is now guiding for earnings of $3.15 to $3.45 a share for the year, and about $4.50 a share on an adjusted basis. Analysts polled by FactSet had been projecting adjusted earnings of $4.80 a share.
In response to the Trump administration's tariff campaign, the company said it introduced a high-single-digit percentage price increase in its U.S. tool and outdoor business last April, and plans to raise prices again at the beginning of the third quarter. It has already notified customers that more price changes are coming.
Stanley Black & Decker also said it is accelerating adjustments to its supply chain to reduce costs from tariffs on Chinese imports over the next 12 to 24 months. Management is engaging proactively with the Trump administration on the evolving tariff situation.
Chief Financial Officer Patrick Hallinan said the company will use higher prices to preserve its margin trajectory as it navigates choppy demand trends.
"If the demand environment shifts, we expect to adjust our costs and inventory to protect earnings power and cash flow, while preserving our growth investments," Hallinan said.
For the first three months of the year, the company posted a profit of $90.4 million, or 60 cents a share, compared with $19.5 million, or 13 cents a share, in the same quarter a year earlier.
Stripping out one-time items, adjusted earnings were 75 cents a share. Analysts polled by FactSet had been expecting 65 cents a share.
Sales were down 3% at $3.74 billion, but still topped analyst projections for $3.69 billion, according to FactSet.
The top line grew 1% on an organic basis, but the gain was more than offset by foreign currency fluctuations and the effects of its selling its hydraulic tools business last year.
Shares were up 4.9% at $64.26 in premarket trading.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
April 30, 2025 06:52 ET (10:52 GMT)
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