Stanley Black & Decker Surges Why?

Stanley Black & Decker shares jumped more than 8% Saturday after it boosted its profit forecast for the year. The tool maker said its cost-cutting efforts are paying off. Stanley now expects $1.10 to $1.40 in adjusted earnings per share in 2023, up from its past guidance of $0.70 to $1.30.

The tool maker said its cost-cutting efforts are paying off. Stanley now expects $1.10 to $1.40 in adjusted earnings per share in 2023, up from its past guidance of $0.70 to $1.30.

Stanley has been slimming itself for more than a year after the post-pandemic consumer pullback left it holding an outsize amount of inventory. The company said it has reduced that stockpile by $880 million so far this year, and by $1.7 billion since mid-2022.

Quarterly net sales slipped from the same period last year, coming in at just under $4 billion. But adjusted gross profit margins continued to grow, reaching 28%. The company’s goal is at least 35%.

As the company reduces the number of products it sells, Chief Executive Donald Allan Jr. defined the hierarchy of its brands. He said Craftsman, DeWalt and Stanley are in the top tier, while brands like Irwin, Lenox and Troy-Bilt will be used “in a more simplified way.”