Stanley Black & Decker’s sales edged up in the latest quarter as its earnings more than tripled, the tool maker reported Wednesday.
Company officials noted that tariffs refunds bolstered its earnings and margin totals, and that it raised its annual earnings forecast heading into the second half of the year.
Stanley posted net sales of $3.96 billion in the second quarter, up from just shy of $3.95 billion in the same quarter last year. Although organic sales rose by 3% year-over-year and currency tailwinds contributed 1% to the total, those increases were nearly offset by the sale of its Consolidated Aerospace Manufacturing subsidiary and a shift to a licensing model for gas walk-behind outdoor products.
Sales in the company’s tools and outdoor segment were up 3%, while the engineered fastening division saw sales slip by 18% following the CAM sale.
Stanley’s gross profit rose from $1.07 billion to $1.31 billion in the latest quarter, while gross margin rose 600 basis points to 33%. Net earnings, meanwhile, soared from $101.9 million to $351.3 million year over year, which translated to Q2 earnings per share of $2.33. Net tariff refunds, officials said, contributed 250 basis points to its gross margin and $0.17 to its earnings per share.
Stanley Black & Decker President and CEO Chris Nelson said that the company is on track to meet its “full-year targets” and that tariff refunds are supporting “incremental growth investments.” The company said its earnings forecast for the full year to between $4.60 and $5.45 per share, up from an earlier outlook of $4.15 to $5.35.
"We are confident in our path forward and our ability to navigate the external environment to deliver our long-term financial goals,” Nelson said in a statement.
