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.