16% sales growth in Q2 driven by outdoor power equipment.
Stanley Black & Decker (SWK), reported strong revenue and earnings growth in the second quarter of 2022 driven by outdoor power equipment.
“Our recent portfolio transformation has enabled $2.3 billion of share repurchases in 2022 and has sharpened the company’s focus on our market leading Tools and Outdoor franchise as well as our strong Industrial products business,” said Donald Allan, Jr., Stanley Black & Decker’s president and CEO.
The New Britain, Connecticut company reported Q2 revenue growth of 16% to $4.4 billion over $3.8 billion in the same quarter last year.
Completion of security divestitures in July, said the firm, generated $4.1 billion in cash proceeds, strengthening the balance sheet and fueling capital allocation priorities.
Gross margin for the quarter was 27.5%. Excluding charges, gross margin was 27.9%. Gross margin was down 800 basis points from prior year, said the company.
In Q2 segments, the company reported Tools & Outdoor net sales increased 11%, and Industrial net sales increased 9%.
The Bottom Line: Stanley Black & Decker sales moved ahead 16% to $4.4 billion for Q2 2022.
What the CEO said: “While the macroeconomic environment – including inflation, rising interest rates and significantly slower demand in late May and June – drove most of the challenges we faced this quarter, these headwinds underscore the need to accelerate our strategic transformation. As the softening of the demand environment accelerated rapidly during the last portion of the quarter, we began taking immediate corrective cost actions, which we are continuing to implement,” said Allan.
Company info: Click HERE to read the 2022 Q2 financial report from Stanley Black & Decker.