From CNBC: 2024-05-02 15:44:53

Stanley Black & Decker beat revenue and earnings expectations in the first quarter but stock fell due to reiterated guidance. The company is in the later stages of a cost-cutting and restructuring plan, focusing on optimizing inventory and simplifying operations. Despite soft demand, management is making progress on its plan to achieve $2 billion in annual cost savings by 2025. Quarterly commentary shows positive growth in the Tools & Outdoor segment, driven by demand for handheld cordless outdoor power equipment. The stock fell after earnings due to concerns about the soft DIY market and management’s reiteration of guidance. Management is maintaining its full-year outlook but expects gross margins to improve sequentially in both halves of 2024. With a long-term gross margin target of 35%, the company continues to focus on cost savings and operational efficiency.



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