Stanley, Black & Decker raises prices on tariff uncertainty

On April 30, Stanley Black & Decker announced first quarter 2025 financial results, showing net sales of $3.7 billion, down 3% versus prior year.

Donald Allan, Jr., Stanley Black & Decker’s President & CEO, commented, “Stanley Black & Decker started the year with a solid first quarter, including one point of organic revenue growth and year-over-year gross margin expansion, both key measures of continued progress against our strategic objectives. We also extended our streak of revenue growth at our powerhouse pro-focused Dewalt brand.” 

“In light of the current environment, we are accelerating adjustments to our supply chain and exploring all options as we seek to minimize the impact of tariffs on end users while balancing the need to protect our business and our ability to innovate for years to come. With that in mind, we implemented an initial price increase in April and notified our customers that further price action is required. We are also continuing to closely monitor shifting tariff policies as well as their potential effects on the operating and demand environments with an aim of being agile and responsive. Against this backdrop, our top priorities remain clear: accelerating our growth culture to serve our end users and customers, generating cash and strengthening our balance sheet, and progressing the transformation to support our long-term margin journey.” 

By segment

Tools & Outdoor net sales were flat versus first quarter 2024, as volume (+1%) was offset by currency (-1%). Organic revenue was up 1%, with continued growth in Dewalt supported by professional demand as well as strong shipments in advance of the outdoor season. 

Regional total revenue growth was: 

• North America (+2%), 
• Europe (-2%) 
• rest of world (-9%)

Tariff Policy Implications

In response to the United States’ recent policy actions and to safeguard gross margins, Stanley, Black & Decker has implemented a high-single digit U.S. Tools & Outdoor price increase in April, with plans to introduce a second price increase effective the beginning of the third quarter. The company is also accelerating strategic adjustments to its supply chain with the objective of leveraging Mexico and reducing China tariff costs over the next 12-24 months. It expects to leverage its industry leading North American footprint as a competitive advantage (~60% of U.S. cost of sales). 

Management also intends to continue proactively engaging with the U.S. administration. The 2025 EPS impact from tariffs net of price and supply chain adjustments is currently estimated to be roughly negative $0.75 reflecting the timing required to implement mitigation countermeasures.

2025 Planning Assumptions

Patrick D. Hallinan, executive vice president and CFO, commented, “In a dynamic environment with reduced visibility, we are remaining nimble and planning for a range of scenarios in 2025. We intend to implement pricing actions judiciously to preserve our long term margin journey and our ability to continue to meet the needs of our end users, while we respond decisively with operational and supply chain initiatives. 

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. Our top priorities remain generating cash and restoring balance sheet strength, margin expansion, and to position the company for long term growth and value creation.”