Stanley B&D sales up big

Stanley Black & Decker (SWK), reported strong revenue and earnings growth in the first quarter of 2022 driven by strategic outdoor power acquisitions and a sustained strong demand environment.

“Stanley Black & Decker capitalized on the strong demand environment, our recent strategic acquisitions in the fast-growing outdoor power equipment market and a 5% contribution from pricing to drive 20% quarterly revenue growth as well as higher sequential margins,” said Stanley Black & Decker’s CEO Jim Loree.

The New Britain, Connecticut company reported Q1 revenue growth of 20% to $4.4 billion over $3.7 billion in the same quarter last year. Volume was in line with expectations, the company said, but constrained by temporary electronic component supply challenges, which have continued to improve.

The gross margin for the quarter was 29.3%. Excluding charges, gross margin was 31.3%, improving 230 basis points sequentially, due to the successful implementation of planned price realization actions, said the firm.

In Q1 segments, the company reported Tools & Outdoor net sales increased 24% on acquisitions of MTD and Excel, and Industrial net sales declined 2% as Engineered Fastening organic revenues were down.

The Bottom Line: Stanley Black & Decker sales moved ahead 20% for Q1 2022.

What the CEO said: “We continue to strengthen our number one position in tools and are strategically focusing our portfolio for sustained growth, scale and efficiencies. Our announced Security divestitures enabled $2.3 billion of share repurchases in the first quarter, at a compelling value, which represents substantial progress against our $4 billion share repurchase program,” said Loree.

Company info: Click HERE to read the 2022 Q1 financial report from Stanley Black & Decker.