Tools Group Momentum
Q: How did the pivot in the Tools Group impact Q3 growth?
A: The shift towards hand tools significantly drove growth, with hand tools being the strongest category this quarter. " Hand tools represented a major mix of sales for franchisees, helping margins and reflecting what customers are ready to buy. "

Diagnostics and Software Growth
Q: Is the Apollo Plus driving growth in Diagnostics, and does the Tools Group benefit?
A: The launch of Apollo Plus boosted Diagnostics sales, with sales and activations up substantially year-over-year. " It's the most cost-effective way to get intelligent diagnostics, appealing to the market. " Tools Group benefits, and software subscriptions are up substantially, contributing to profitability. "

Gross Profit Improvement
Q: What contributed to the 100 basis point gross profit increase in Snap-on Tools?
A: The increase resulted from a combination of factors: category mix favoring hand tools, efficiencies from new factory arrangements, and lower steel costs. " Hand tools provided some favorability, but improvements were across the board. "

Q4 Growth Outlook
Q: How are you thinking about Q4 growth for Snap-on Tools?
A: While not providing guidance, we believe the Tools Group has momentum. " With uncertainty, customers want lower payback items, and we're catering to that with compelling new products and expanded factory capacity. "

RS&I Hardware Sales
Q: What's happening with hardware sales in RS&I?
A: Hardware sales, particularly equipment like aligners and lifts, are seeing a slowdown. " Customers are hesitant to make big-ticket purchases due to macroeconomic factors and may delay installations. "

Torque Products Growth
Q: What's driving growth in torque products in C&I?
A: Increasing complexity in critical industries requires more precise tools, and torque wrenches provide that precision. " Additionally, the need for documentation is driving demand, as our tools connect with factory systems to record correct application. " This business grew in profits and sales in the quarter. "

Franchisee Attrition Trends
Q: Can you update us on franchisee attrition trends?
A: Attrition trends have remained about the same, fluctuating by tenths of a point quarter-to-quarter. " We saw an increase in the number of assistants as a percent of franchisees, which is favorable. "

Corporate Expense Modeling
Q: How should we model corporate expenses for 2025?
A: Lower expenses this year are due to reduced performance-based compensation. " For 2025, model around $27 million per quarter. " This year's slower growth affected performance-based compensation. "

Election Impact
Q: How might the election outcome impact your business?
A: It's difficult to predict the impact due to uncertainty around policy specifics. " Tariffs could require adjustments but might benefit those producing locally. "

SFC Orders and Fulfillment
Q: How did SFC orders perform and what's the fulfillment pattern?
A: SFC orders were flat year-over-year, adjusted for a shorter selling period. " " We've planned reinforcing promotions and expect fulfillment over a shorter period. " "

Mechanic Sentiment and Sales Mix
Q: Is improved momentum due to product mix or mechanic sentiment?
A: Mechanic sentiment isn't improving. " Momentum comes from pivoting to offer attractive, quick payback items that customers can buy without long financing. " Third quarter sales were up over second quarter, indicating momentum. "