Stanley Black & Decker, the tool maker based in New Britain, Connecticut, reported a decrease in sales for the third quarter. The decline can be attributed to a drop-off in consumer interest in do-it-yourself renovation projects following the pandemic.
Despite this, the company managed to achieve a quarterly profit of $4.7 million, or 3 cents per share. However, this is significantly lower compared to last year's figures of $844.6 million, or $5.50 per share. It's important to note that the previous year's results included contributions from discontinued operations.
After accounting for one-time items such as a non-cash impairment charge and costs associated with the company's supply-chain overhaul, adjusted earnings totaled $1.05 per share. This exceeds the 83 cents per share anticipated by analysts surveyed by FactSet.
Total revenue experienced a 4% decrease, amounting to $3.95 billion, falling short of analysts' expectations of $3.99 billion according to FactSet.
Despite the challenges faced, Stanley Black & Decker remains committed to its cost-cutting program and has made significant progress in reducing inventory by approximately $880 million since the end of last year. However, the company continues to experience reduced demand for its products due to a decline in outdoor projects and a decrease in do-it-yourself trends.
