| Metric (Million USD) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|
| United States        | 2,422.4  **[0000093556-23-000013_swk-20230401.htm:27]**  | 2,600.6  **[0000093556-23-000025_swk-20230701.htm:32]**  | 2,522.5  **[0000093556-23-000031_swk-20230930.htm:32]**  | N/A     | 2,357.3  **[0000093556-24-000091_swk-20240330.htm:23]**  | 2,514.1  **[0000093556-24-000141_swk-20240629.htm:26]**  | 2,337.7  **[0000093556-24-000181_swk-20240928.htm:28]**  |
| Canada               | 218.3  **[0000093556-23-000013_swk-20230401.htm:27]**    | 194.7  **[0000093556-23-000025_swk-20230701.htm:32]**    | 185.2  **[0000093556-23-000031_swk-20230930.htm:32]**    | N/A     | 215.9  **[0000093556-24-000091_swk-20240330.htm:23]**    | 189.7  **[0000093556-24-000141_swk-20240629.htm:26]**    | 177.2  **[0000093556-24-000181_swk-20240928.htm:28]**    |
| Other Americas       | 193.4  **[0000093556-23-000013_swk-20230401.htm:27]**    | 221.1  **[0000093556-23-000025_swk-20230701.htm:32]**    | 231.8  **[0000093556-23-000031_swk-20230930.htm:32]**    | N/A     | 209.5  **[0000093556-24-000091_swk-20240330.htm:23]**    | 225.8  **[0000093556-24-000141_swk-20240629.htm:26]**    | 229.2  **[0000093556-24-000181_swk-20240928.htm:28]**    |
| France               | 148.3  **[0000093556-23-000013_swk-20230401.htm:27]**    | 133.3  **[0000093556-23-000025_swk-20230701.htm:32]**    | 94.8  **[0000093556-23-000031_swk-20230930.htm:32]**     | N/A     | N/A          | N/A          | N/A          |
| Other Europe         | 635.4  **[0000093556-23-000013_swk-20230401.htm:27]**    | 700.4  **[0000093556-23-000025_swk-20230701.htm:32]**    | 604.2  **[0000093556-23-000031_swk-20230930.htm:32]**    | N/A     | 788.7  **[0000093556-24-000091_swk-20240330.htm:23]**   | 799.9  **[0000093556-24-000141_swk-20240629.htm:26]**   | 703.2  **[0000093556-24-000181_swk-20240928.htm:28]**   |
| Asia                 | 314.0  **[0000093556-23-000013_swk-20230401.htm:27]**    | 308.8  **[0000093556-23-000025_swk-20230701.htm:32]**    | 315.4  **[0000093556-23-000031_swk-20230930.htm:32]**    | N/A     | 298.1  **[0000093556-24-000091_swk-20240330.htm:23]**   | 294.9  **[0000093556-24-000141_swk-20240629.htm:26]**   | 304.0  **[0000093556-24-000181_swk-20240928.htm:28]**   |
| Total Revenue        | 3,931.8  **[0000093556-23-000013_swk-20230401.htm:27]**  | 4,158.9  **[0000093556-23-000025_swk-20230701.htm:32]**  | 3,953.9  **[0000093556-23-000031_swk-20230930.htm:32]**  | N/A     | 3,869.5  **[0000093556-24-000091_swk-20240330.htm:23]**  | 4,024.4  **[0000093556-24-000141_swk-20240629.htm:26]**  | 3,751.3  **[0000093556-24-000181_swk-20240928.htm:28]**  |

c7d1603297ebbaaa8b6179fd98af879bbfad13788b7630d2d334e59d5160ba05

Stanley Black & Decker, Inc. is a diversified global provider of tools, storage, and engineered fastening systems, operating through two main business segments: Tools & Outdoor and Industrial. The company offers a wide range of products, including power tools, hand tools, outdoor equipment, and engineered components for various industries **[0000093556-24-000032_swk-20231230.htm:5]** **[0000093556-24-000091_swk-20240330.htm:37]** **[0000093556-24-000181_swk-20240928.htm:40]**. Their products are marketed under well-known brands such as DEWALT®, CRAFTSMAN®, BLACK+DECKER®, and CUB CADET® **[0000093556-24-000032_swk-20231230.htm:5]** **[0000093556-24-000091_swk-20240330.htm:37]** **[0000093556-24-000181_swk-20240928.htm:40]**. The Industrial segment also includes businesses that cater to the automotive and aerospace industries with specialized fastening solutions **[0000093556-24-000032_swk-20231230.htm:6]** **[0000093556-24-000141_swk-20240629.htm:40]** **[0000093556-24-000181_swk-20240928.htm:41]**.

1. **Tools & Outdoor** - Comprises the Power Tools Group, Hand Tools, Accessories & Storage, and Outdoor Power Equipment, offering a variety of professional and consumer products under brands like DEWALT®, CRAFTSMAN®, and BLACK+DECKER®.
   - **Power Tools Group (PTG)** - Offers professional and consumer power tools under brands such as DEWALT®, CRAFTSMAN®, and BLACK+DECKER®.
   - **Hand Tools, Accessories & Storage (HTAS)** - Provides hand tools, power tool accessories, and storage products.
   - **Outdoor Power Equipment** - Sells lawn and garden products under brands like DEWALT®, CRAFTSMAN®, and CUB CADET®.

2. **Industrial** - Includes the Engineered Fastening and Infrastructure businesses, providing highly engineered components like fasteners and fittings for industries such as automotive and aerospace.
   - **Engineered Fastening** - Supplies fasteners and fittings for various industries, including automotive and aerospace.
   - **Infrastructure** - Previously designed and sold attachments and tools for infrastructure and construction applications, but was sold in April 2024.

aa062cf755bc3bcc792f3b93eee6eecbb04dc590a1da7896a55066d187761b2b

29de89e84bd2eef6a97922c64466e57a4b9d2d9bed556194d9266feb3cbc806c

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

d9bc9ed3db27b756655fde05eb36f20cacbcd005313ba7bc52455ffb78b4ac5e

| Metric (in millions USD) | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|--------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Tools & Outdoor          | 3,382.9  **[0000093556-23-000003_exhibit992financialsq42022.htm:5]**  | 3,315.4  **[0000093556-23-000013_swk-20230401.htm:45]** **[0000093556-23-000011_exhibit992financialsq12023.htm:2]**  | 3,542.2  **[0000093556-23-000025_swk-20230701.htm:52]**  | 3,355.3  **[0000093556-23-000031_swk-20230930.htm:54]**  | 3,154.2  **[0000093556-24-000006_exhibit992financialsq42023.htm:5]**  | 3,284.6  **[0000093556-24-000091_swk-20240330.htm:42]**  | 3,528.7  **[0000093556-24-000141_swk-20240629.htm:25]**  | 3,263.3  **[0000093556-24-000181_swk-20240928.htm:49]**  |
| Industrial               | 603.9  **[0000093556-23-000003_exhibit992financialsq42022.htm:5]**  | 616.4  **[0000093556-23-000013_swk-20230401.htm:45]** **[0000093556-23-000011_exhibit992financialsq12023.htm:2]**  | 616.7  **[0000093556-23-000025_swk-20230701.htm:52]**  | 598.6  **[0000093556-23-000031_swk-20230930.htm:31]**  | 582.3  **[0000093556-24-000006_exhibit992financialsq42023.htm:5]**  | 584.9  **[0000093556-24-000091_swk-20240330.htm:42]**  | 495.7  **[0000093556-24-000141_swk-20240629.htm:25]**  | 488.0  **[0000093556-24-000181_swk-20240928.htm:27]**  |
| Total Net Sales          | 3,986.8  **[0000093556-23-000003_exhibit992financialsq42022.htm:5]**  | 3,931.8  **[0000093556-23-000011_exhibit992financialsq12023.htm:2]**  | 4,158.9  **[0000093556-23-000025_swk-20230701.htm:52]**  | 3,953.9  **[0000093556-23-000028_exhibit992financialsq32023.htm:5]**  | 3,736.5  **[0000093556-24-000006_exhibit992financialsq42023.htm:5]**  | 3,869.5  **[0000093556-24-000091_swk-20240330.htm:42]**  | 4,024.4  **[0000093556-24-000141_swk-20240629.htm:25]**  | 3,751.3  **[0000093556-24-000181_swk-20240928.htm:27]**  |

953c47e2b3eafddb6bd62b1ed8d8032f8f142e46a5b6171c20ebd7e98e225fa2

1. Given the mixed demand environment you mentioned and expectations of continued macroeconomic challenges, how confident are you in achieving the **35% plus adjusted gross margin goal** within your transformation time horizon, and what contingencies do you have in place if market conditions worsen?  **[SWK_3394985_6]** **[SWK_3394985_8]** **[SWK_3394985_10]** 

2. You noted **strong free cash flow generation** this quarter, partly due to accelerated working capital improvements. With expectations of a soft macro environment in the second half, can you elaborate on the specific actions you will take to **sustain free cash flow** and further **reduce debt**, especially considering the planned additional **$400 million to $500 million of short-term debt reduction** by year-end?  **[SWK_3394985_8]** **[SWK_3394985_2]** **[SWK_3394985_9]** 

3. With your **increased investments in innovation, brand marketing, and market activation**, how are you balancing these expenditures with your commitment to **cost management and margin improvement**, particularly in light of the challenging demand environment and the need to **fund additional organic growth investments**?  **[SWK_3394985_11]** **[SWK_3394985_5]** 

4. The guidance mentions a **second quarter environmental reserve expense of approximately $155 million**. Can you provide more details on this expense and discuss how it impacts your **financial outlook**, especially concerning priorities like debt reduction and investment in growth initiatives?  **[SWK_3394985_9]** 

5. In the Industrial segment, you expect **flat to slightly positive organic revenue growth**, with **aerospace fasteners growth** being partially offset by **global automotive OEM light vehicle production headwinds**. How are you navigating these industry-specific challenges, and what strategies are in place to drive growth in this segment despite the macro pressures?  **[SWK_3394985_9]** 

69ca3a22eae24056ebe5d02af5856f2c8735d496420a86596e8205fa38b9618b

United States

Canada

Other Americas

- France

- Other Europe

Europe

Asia

Total Revenue

33107b8aeff562ec29682fa9c0c8a78d9704e73d03fb88f7c40e46cdb578c58d

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

Selling, General, and Administrative Expenses (SG&A) [USD, Millions]

Research and Development (R&D) [USD, Millions]

Depreciation and Amortization (D&A) [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

Earnings Per Share (EPS) - Basic [USD, Units]

Earnings Per Share (EPS) - Diluted [USD, Units]

a4b284746485e6e4f8577c0b7ea01edc00667a0785e64b574c69739009c3e0e2

Organic revenue for Tools & Outdoor (percentage)

Organic revenue in Tools & Outdoor North America (percentage)

Organic revenue in Tools & Outdoor Europe (percentage)

Organic revenue in Tools & Outdoor rest of the world (percentage)

Volume for Tools & Outdoor (percentage)

Price for Tools & Outdoor (percentage)

Volume for Industrial (percentage)

Price for Industrial (percentage)

Engineered Fastening organic revenues (percentage)

Pre-tax run-rate savings from the supply chain transformation (USD millions)

e6ac4dbec9f0008442ba9da0f35250ebeb7e4d594ec5f63bf8333414ebe0bf36

### Q3 2024 Earnings Call
- **Issued Period:** Q3 2024
- **Guided Period:** N/A
- **Guidance:** The documents do not contain information from the Q3 2024 earnings call for Stanley Black & Decker (SWK). Therefore, I cannot provide the guidance from that specific earnings call.

### Q2 2024 Earnings Call
- **Issued Period:** Q2 2024
- **Guided Period:** FY 2024
- **Guidance:**
  1. **Free Cash Flow:** $650 million to $850 million  **[SWK_3394985_2]** **[SWK_3394985_8]** .
  2. **Adjusted Diluted EPS:** $3.70 to $4.50  **[SWK_3394985_2]** **[SWK_3394985_9]** .
  3. **GAAP Earnings Per Share:** $0.90 to $2.00  **[SWK_3394985_9]** .
  4. **Organic Revenue:** Expected to be down 0.5 percentage points at the midpoint  **[SWK_3394985_9]** .
  5. **Tools & Outdoor Segment:** Organic revenue expected to decline 1% at the midpoint  **[SWK_3394985_9]** .
  6. **Industrial Segment:** Organic revenue expected to be relatively flat to slightly positive  **[SWK_3394985_9]** .
  7. **SG&A as a Percentage of Sales:** Mid-21% zone  **[SWK_3394985_9]** .
  8. **Adjusted EBITDA Margin:** Approximately 10%  **[SWK_3394985_9]** .
  9. **Adjusted Gross Margin:** Approximately 31% in the second half, with a full-year target of 30%  **[SWK_3394985_8]** **[SWK_3394985_7]** .
  10. **Tax Rate:** Adjusted tax rate of 10% for the full year  **[SWK_3394985_9]** .
  11. **Debt Reduction:** Additional $400 million to $500 million of short-term debt reduction  **[SWK_3394985_8]** .
  12. **Total Debt Target for 2025:** Low $5 billion zone by year-end 2025  **[SWK_3394985_8]** .
  13. **Transformation Savings:** $1.5 billion of pretax run rate savings by end of 2024 and $2 billion by end of 2025  **[SWK_3394985_7]** .

### Q1 2024 Earnings Call
- **Issued Period:** Q1 2024
- **Guided Period:** FY 2024
- **Guidance:**
  1. **Adjusted Diluted EPS:** $3.50 to $4.50  **[SWK_3382094_2]** **[SWK_3382094_6]** .
  2. **GAAP Earnings Per Share:** $1.60 to $2.85  **[SWK_3382094_6]** .
  3. **Free Cash Flow:** $600 million to $800 million  **[SWK_3382094_2]** **[SWK_3382094_6]** .
  4. **Adjusted Gross Margin:** Approximately 30%  **[SWK_3382094_6]** .
  5. **Adjusted EBITDA Margin:** Approximately 10%  **[SWK_3382094_6]** .
  6. **Organic Revenue:** Flat to down 1%  **[SWK_3382094_6]** .
  7. **Tools & Outdoor Organic Revenue:** Below flat  **[SWK_3382094_6]** .
  8. **Industrial Segment Organic Revenue:** Flat to slightly positive  **[SWK_3382094_6]** .
  9. **SG&A as a Percentage of Sales:** Mid-21% zone  **[SWK_3382094_6]** .
  10. **Adjusted Tax Rate:** 10% for the full year  **[SWK_3382094_7]** .
  11. **CapEx:** $400 million to $500 million  **[SWK_3382094_6]** .
  12. **Inventory Reduction:** $400 million to $500 million  **[SWK_3382094_6]** .
  13. **Growth Investments:** Incremental $100 million  **[SWK_3382094_6]** .

### Q4 2023 Earnings Call
- **Issued Period:** Q4 2023
- **Guided Period:** FY 2024
- **Guidance:**
  1. **Adjusted Earnings Per Share (EPS):** $3.50 to $4.50  **[SWK_3371535_8]** .
  2. **GAAP Earnings Per Share:** $1.60 to $2.85  **[SWK_3371535_8]** .
  3. **Free Cash Flow:** $600 million to $800 million  **[SWK_3371535_8]** .
  4. **Adjusted Gross Margin:** Approximately 30%  **[SWK_3371535_8]** .
  5. **Adjusted EBITDA Margin:** Approximately 10%  **[SWK_3371535_8]** .
  6. **Adjusted Tax Rate:** 10% for the full year  **[SWK_3371535_9]** .
  7. **Organic Revenue Growth:** Relatively flat  **[SWK_3371535_8]** .
  8. **Tools & Outdoor Organic Revenue:** Relatively flat  **[SWK_3371535_8]** .
  9. **Industrial Segment Revenue:** Flat to slightly positive  **[SWK_3371535_8]** .
  10. **SG&A as a Percentage of Sales:** Around 21%  **[SWK_3371535_8]** .
  11. **Inventory Reduction:** $400 million to $500 million  **[SWK_3371535_7]** .
  12. **CapEx:** $400 million to $500 million  **[SWK_3371535_7]** .
  13. **First Quarter Adjusted EPS:** Approximately 13% of the full year  **[SWK_3371535_9]** .
  14. **First Quarter Adjusted EBITDA:** Over 20% of the full year  **[SWK_3371535_9]** .
  15. **First Quarter Organic Sales Growth:** Down low single digits  **[SWK_3371535_9]** .

2aab908195c00440bfc01554ca392a4280209c563aad65053117aa1d75de7f2a

Tools & Outdoor

- Power Tools Group (PTG)

- Hand Tools, Accessories & Storage (HTAS)

- Outdoor Power Equipment

Tools & Storage

Construction & Do-It-Yourself (CDIY)

Industrial

- Engineered Fastening

- Infrastructure

Security

Corporate Overhead & Other

bbfa142b18e64021cae4a0fd12a066595e555fdc2a4c75f8d263b89312d5defb

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | April 21, 2022  **[0000093556-24-000181_swk-20240928.htm:65]**  |
| End Date/Duration        | No expiration date  **[0000093556-24-000181_swk-20240928.htm:65]**  |
| Total additional amount  | 20 million shares  **[0000093556-24-000181_swk-20240928.htm:65]**  |
| Remaining authorization amount | 20 million shares  **[0000093556-24-000181_swk-20240928.htm:65]**  |
| Details                  | The program allows for repurchase through various methods, including open market purchases, privately negotiated transactions, or accelerated share repurchase programs. The purpose is to return excess capital to shareholders, with a current focus on debt reduction and internal growth investments over share repurchases.  **[0000093556-23-000007_swk-20221231.htm:44]** **[0000093556-23-000031_swk-20230930.htm:72]** **[0000093556-23-000031_swk-20230930.htm:45]**  |

d82bd37bf33288c86a6fd7141881bd070f9879ea98e89dd35d88a335a9c24ddb

**Quarterly guidance for Q4 2024:**
- **Organic revenue**: down 1.5%  **[SWK_3404327_7]**  (no prior guidance)

**Annual guidance for FY 2024:**
- **Total company organic revenue**: down 1%  **[SWK_3404327_7]**  (lowered from down 0.5%  **[SWK_3394985_9]** )
- **Tools & Outdoor (organic)**: down 1%  **[SWK_3404327_8]**  (no change from prior guidance  **[SWK_3394985_9]** )
- **Industrial (organic)**: down 1%  **[SWK_3404327_8]**  (lowered from flat to slightly positive  **[SWK_3394985_9]** )
- **Pricing**: relatively flat  **[SWK_3404327_8]**  (no prior guidance)
- **Adjusted EBITDA margin**: 10%  **[SWK_3404327_8]**  (no change from prior guidance  **[SWK_3394985_9]** )
- **Adjusted gross margin**: 30%  **[SWK_3404327_7]**  (no change from prior guidance  **[SWK_3394985_8]** **[SWK_3394985_7]** )
- **SG&A as a percentage of sales**: low 21% zone  **[SWK_3404327_8]**  (lowered from mid-21% zone  **[SWK_3394985_9]** )
- **Adjusted EPS**: $3.90 to $4.30  **[SWK_3404327_7]**  (no change from prior $3.70 to $4.50  **[SWK_3394985_2]** **[SWK_3394985_9]** )
- **GAAP EPS**: $1.15 to $1.75  **[SWK_3404327_7]**  (no change from prior $0.90 to $2.00  **[SWK_3394985_9]** )
- **Free cash flow**: $650M to $850M  **[SWK_3404327_7]**  (no change from prior $650M to $850M  **[SWK_3394985_2]** **[SWK_3394985_8]** )
- **Capital expenditures**: $325M to $375M  **[SWK_3404327_7]**  (no prior guidance)
- **Tax rate**: 10%  **[SWK_3404327_8]**  (no change from prior guidance  **[SWK_3394985_9]** )
- **Debt reduction**: total gross debt ~$6B by end of 2024, targeting 2.5x net debt to EBITDA by year-end 2025  **[SWK_3404327_7]**  (no prior guidance)
- **Transformation program savings**: $1.5B run-rate by end of 2024 and $2B by end of 2025  **[SWK_3404327_1]**  (no change from prior guidance  **[SWK_3394985_7]** )
- **Investments**: $100M in 2024  **[SWK_3404327_8]**  (no prior guidance)

a4d5ad7cdb7f7e4a6970441ff7269c589c54905c50b08b1e4b34239ac8c0977d

| Name               | Start Date | End Date | Reason for Change |
|--------------------|------------|----------|-------------------|
| Ernst & Young LLP | 1932       | Present  | Current auditor   |  **[0000093556-24-000032_swk-20231230.htm:98]**  |

e5b818fe4df6d656e258d54079bf1c63f1eba58ee582fb57e1019d2599e4f619

43abeb4d88a0c45b2ba53fd1d091746a7c6c13d22c71827781d41aec6bb28ca8

- **Strong Confidence in Mitigating Tariff Impacts**: Management expressed confidence in their ability to navigate potential tariff challenges through a combination of pricing actions and accelerated supply chain reconfiguration, indicating resilience to external pressures.  **[SWK_3414382_13]** ,  **[SWK_3414382_14]**
- **Continued Growth in Core Brands, Especially DEWALT**: The company's DEWALT brand achieved its seventh consecutive quarter of organic growth, with expectations to build on this momentum and see further share gains in 2025, including stabilization and modest gains in the Craftsman and Stanley brands.  **[SWK_3414382_5]** ,  **[SWK_3414382_12]**
- **Strategic Investments in Innovation and Market Activation**: SWK is investing in professional user-focused innovation, expanding field resources, and targeted marketing initiatives, which are expected to fuel volume growth and organic revenue in 2025.  **[SWK_3414382_5]** ,  **[SWK_3414382_12]**

73f98f130e4c6c37d69584bd3a055969f2e6b118a1ef50502df6d7d318b19bc0

**Quarterly guidance for Q1 2025:**  
- **Adjusted EPS**: 12% to 13% of full-year $5.25  **[SWK_3414382_8]**  (no prior guidance)

---

**Annual guidance for FY 2025:**

- **GAAP EPS**: $4.05 ± $0.65 midpoint  **[SWK_3414382_7]**  (raised from $1.15–$1.75  **[SWK_3404327_7]** )  
- **Adjusted EPS**: $5.25 ± $0.50 midpoint  **[SWK_3414382_7]** **[SWK_3414382_2]**  (raised from $3.90–$4.30  **[SWK_3404327_2]** **[SWK_3404327_7]** )  
- **Free Cash Flow**: $650M–$850M  **[SWK_3414382_7]**  (no change from $650M–$850M  **[SWK_3404327_2]** **[SWK_3404327_7]** )  
- **Capital Expenditures**: $350M–$400M  **[SWK_3414382_7]**  (raised from $325M–$375M  **[SWK_3404327_7]** )  
- **Organic Revenue Growth**: ~2% midpoint  **[SWK_3414382_7]**  (raised from -1%  **[SWK_3404327_7]** )  
- **Adjusted Gross Margin**: Continued expansion toward 35%+  **[SWK_3414382_6]**  (raised from ~30%  **[SWK_3404327_7]** )  
- **Adjusted EBITDA Margin**: Expected to improve year-over-year  **[SWK_3414382_8]**  (raised from ~10%  **[SWK_3404327_8]** )  
- **SG&A as % of Sales**: ~22%  **[SWK_3414382_8]**  (raised from ~21%  **[SWK_3404327_8]** )  
- **Net Debt to EBITDA**: At or below 2.5× within 12–18 months  **[SWK_3414382_6]**  (no change from ~2.5× by year-end 2025  **[SWK_3404327_7]** )  
- **Tax Rate**: 15%  **[SWK_3414382_8]**  (raised from 10%  **[SWK_3404327_8]** )  

Additional FY 2025 metrics with no prior guidance:  
- **Total Company Revenue**: Relatively flat year-over-year  **[SWK_3414382_7]**  (no prior guidance)  
- **Segment-Specific Organic Revenue Growth**: Tools & Outdoor low single digits, Industrial low single digits  **[SWK_3414382_8]**  (no prior guidance)  
- **Currency Impact**: $100M headwind  **[SWK_3414382_8]**  (no prior guidance)  
- **Working Capital Reduction**: $250M–$350M  **[SWK_3414382_7]**  (no prior guidance)  

615603a24729d487ff3241b208ec399a0faef6ba3fa20120480368daa77efdda

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $3,751.3 million (-5% YoY)  **[0000093556-23-000031_swk-20230930.htm:31]** **[0000093556-23-000031_swk-20230930.htm:32]** **[0000093556-24-000181_swk-20240928.htm:28]**   
- Industrial Segment: $488.0 million (-18% YoY)  **[0000093556-23-000031_swk-20230930.htm:31]** **[0000093556-24-000181_swk-20240928.htm:50]**   
- United States: $2,337.7 million (-7% YoY)  **[0000093556-23-000031_swk-20230930.htm:32]** **[0000093556-24-000181_swk-20240928.htm:28]**   
- Net Income: **$91.1 million (+1,838% YoY)**  **[0000093556-23-000031_swk-20230930.htm:1]** **[0000093556-24-000181_swk-20240928.htm:1]**   
- Diluted EPS: **$0.61 (+1,425% YoY)**  **[0000093556-23-000031_swk-20230930.htm:1]** **[0000093556-24-000181_swk-20240928.htm:1]**   

2f4b3545e10fd0382f63e656b78f2cb96aa5f0cc75d222a83cbcd005577af9f7

2f0e170ff0d9ed83451b614efce568de05f0f56be66e9cab4fed2c6f3dffd8e8

| Year | Amount Due (Millions) | Debt Type                          | Interest Rate (%) | % of Total Debt                                                                 |
|----------|----------------------------|-----------------------------------------|------------------------|------------------------------------------------------------------------------------|
| 2024     | $387.3                     | Commercial Paper Borrowings            | N/A                    | 6.3% = (387.3 / 6,154.0) * 100 **[0000093556-24-000181_swk-20240928.htm:2]** **[0000093556-24-000181_swk-20240928.htm:11]**                                    |
| 2025     | $500.0                     | Notes Payable                          | 2.30                   | 8.1% = (500.0 / 6,154.0) * 100 **[0000093556-24-000181_swk-20240928.htm:11]**                                            |
| 2026     | $903.0                     | Notes Payable                          | 3.40, 6.27, 3.42, 1.84 | 14.7% = (903.0 / 6,154.0) * 100 **[0000093556-24-000181_swk-20240928.htm:11]**                                           |
| 2028     | $1,600.0                   | Notes Payable                          | 6.00, 7.05, 4.25, 3.52 | 26.0% = (1,600.0 / 6,154.0) * 100 **[0000093556-24-000181_swk-20240928.htm:11]**                                         |
| 2030     | $750.0                     | Notes Payable                          | 2.30                   | 12.2% = (750.0 / 6,154.0) * 100 **[0000093556-24-000181_swk-20240928.htm:11]**                                           |
| 2032     | $500.0                     | Notes Payable                          | 3.00                   | 8.1% = (500.0 / 6,154.0) * 100 **[0000093556-24-000181_swk-20240928.htm:11]**                                            |
| 2040     | $400.0                     | Notes Payable                          | 5.20                   | 6.5% = (400.0 / 6,154.0) * 100 **[0000093556-24-000181_swk-20240928.htm:11]**                                            |
| 2048     | $500.0                     | Notes Payable                          | 4.85                   | 8.1% = (500.0 / 6,154.0) * 100 **[0000093556-24-000181_swk-20240928.htm:11]**                                            |
| 2050     | $750.0                     | Notes Payable                          | 2.75                   | 12.2% = (750.0 / 6,154.0) * 100 **[0000093556-24-000181_swk-20240928.htm:11]**                                           |
| 2060     | $750.0                     | Notes Payable (Junior Subordinated)    | 4.00                   | 12.2% = (750.0 / 6,154.0) * 100 **[0000093556-24-000181_swk-20240928.htm:11]**                                           |

ecf54039be7091382b9b6db66dc0b6c766d26097c7a7ab0f25a1b5b34534efd0

b4d29098243ef49b43bf13958cbb753fe740c5d9bd2df3e9cf9cf275ab800bbe

- **Stanley Black & Decker is achieving significant gross margin improvements ahead of expectations**, driven by their supply chain transformation and cost savings initiatives, **leading to increased EPS guidance**.  **[SWK_3362534_11]** ,  **[SWK_3362534_12]**
- **The company expects continued gross margin expansion into 2024, targeting a full-year gross margin around 30%**, indicating strong profitability growth and operational efficiency.  **[SWK_3362534_12]** ,  **[SWK_3362534_9]**
- **Strategic investments in innovation and a focus on professional end users and core brands like DEWALT are positioning the company for future growth and market share gains, aiming to grow 2-3x the market over time**.  **[SWK_3362534_10]** ,  **[SWK_3362534_13]**

9d31c54dca163a554d1ea08f6f8fc84c0218f54449d9b2ddd4474267d387725f

- **SWK is ahead of schedule in improving gross margins**, expecting adjusted gross margins to approximate **31% by the third quarter** due to accelerated cost savings, even in a challenging market environment.  **[SWK_3394985_19]**
- **The company is confident in achieving 35%+ adjusted gross margin within the transformation time horizon**, and as markets improve, **they are building an operating model around organic growth that can grow 2 to 3 times the market**, aiming for mid- to high single-digit growth over the long term.  **[SWK_3394985_14]**
- **SWK has strong conviction in the long-term growth potential of its end markets**, serving professional and consumer markets linked to construction and repair, and believes that as interest rates change, it will unlock long-term potential, leading to future volume inflection points.  **[SWK_3394985_19]**

106ea9d5f8381c28c2e1f1aee7d2746d0a15bc70b76a44e719d402119aaf7305

- **SWK is approximately $1.5 billion in revenue down from their original 2022 assumption, reflecting significant shortfalls in sales expectations.**  **[SWK_3394985_19]**
- **Gross margin improvements are driven by accelerated cost savings in response to soft volumes in a soft macro environment, which may not be sustainable long-term.**  **[SWK_3394985_19]**
- **The company's key markets are interest rate-sensitive, and high interest rates may delay the timing of volume recovery and growth.**  **[SWK_3394985_19]**

a3e51f6b8701eaa908021c14e877b757c2d8a17225c01a31e790448938f6c6da

1. **Long-term Earnings Potential**

   **Q:** What is a realistic normalized EBITDA margin, considering cost reductions and investments?

   **A:** Management is confident in achieving **35%+ gross margin** in the given time horizon and believes the company can grow **2–3 times the market**, aiming for **mid- to high single-digit growth** over the long term.  **[SWK_3394985_14]**  They see this as a **40%-ish margin business** as growth leverages margins and expect investments to trend closer to **$500 million**.  **[SWK_3394985_14]**  Returning to previous earnings levels does not concern them; it's just a matter of timing.  **[SWK_3394985_14]** 

2. **Earnings Trajectory and Guidance**

   **Q:** Can you elaborate on the earnings trajectory and provide guidance on revenue, margin, and tax rate?

   **A:** Management confirmed the EPS flow: **flattish in Q3, up $0.40 sequentially in Q4**.  **[SWK_3394985_12]**  They project fourth-quarter revenue to be **slightly north of $3.5 billion** with operating margin between **$300 million and $330 million**.  **[SWK_3394985_12]**  The tax rate for next year is expected to be in the **high teens, approaching 20%**.  **[SWK_3394985_12]** 

3. **Organic Sales Growth Reduction**

   **Q:** Explain the slight reduction in organic sales growth and expectations for tools and storage.

   **A:** The company had a growth quarter despite a soft macro environment, driven by a traditional outdoor season, electric products, and **DEWALT's fifth consecutive quarter of growth**.  **[SWK_3394985_18]**  However, they expect DIY to remain soft and the Tools and Outdoor business to be down slightly in the back half, averaging down **100 basis points** due to a soft consumer and the end of the outdoor season.  **[SWK_3394985_18]**  SG&A for the year will be slightly above **21%**, with no significant change expected next year.  **[SWK_3394985_18]** 

4. **Gross Margin Outlook**

   **Q:** How does the 31% gross margin divide between Q3 and Q4?

   **A:** The company expects to finish the year at **30% gross margin**, with the fourth quarter in the low 30s, specifically **north of 31%**.  **[SWK_3394985_16]**  The third quarter gross margin is expected to be at or slightly below **31%**.  **[SWK_3394985_16]**  They are confident in their trajectory and aim to reach mid-30s gross margin by the end of next year.  **[SWK_3394985_16]** 

5. **Near-term Gross Margin Improvement**

   **Q:** Explain the gross margin improvement to approximately 31% by Q3, given historical seasonality.

   **A:** Gross margin progression has been influenced by factors like timing of expensive inventory coming off the balance sheet.  **[SWK_3394985_19]**  The improvement is due to accelerated savings in late 2023 and early 2024 despite soft volume.  **[SWK_3394985_19]**  The increase from first half to back half is driven more by savings cadence than traditional seasonal dynamics.  **[SWK_3394985_19]** 

6. **Consumer Behavior Trends**

   **Q:** What are you seeing regarding consumer variability and its impact on trends?

   **A:** The professional segment is **relatively stronger than the consumer**, a trend expected to continue.  **[SWK_3394985_17]**  Consumers are responding more favorably to promotions, which benefits the company as they return to normal promotion levels.  **[SWK_3394985_17]**  They anticipate an uneven environment going forward but see potential upside through supply chain transformation and investments targeting professionals.  **[SWK_3394985_17]** 

7. **Operating Environment and Promotions**

   **Q:** How are retailers thinking about year-end promotions, and where are you focusing investments?

   **A:** The operating environment in the back half is expected to be similar to the front half.  **[SWK_3394985_13]**  The company is returning to normal promotional support levels and is excited about plans with retailers, especially promoting the accretive **cordless power tool segment**.  **[SWK_3394985_13]**  Investments are focused on **STANLEY, CRAFTSMAN, and DEWALT** brands, with emphasis on digital marketing and adding field resources to engage customers.  **[SWK_3394985_13]** 

8. **Point-of-Sale Trends**

   **Q:** Can you provide an update on point-of-sale trends through the quarter and into July?

   **A:** Point-of-sale was **modestly positive** throughout the quarter, driven by a normal outdoor season and overperformance in **DEWALT**.  **[SWK_3394985_15]**  As the quarter ended and the outdoor season peaked, trends returned to a more **flat** perspective. The company expects the market to be flat in the back half of the year.  **[SWK_3394985_15]** 

0c081bad812d96a75cb227551c7eebe96e539d392aafecfd7d770a5f4d646409

1. **Demand Trends**  
   **Q:** How will demand trend rest of year?  
   **A:** Management expects revenue to be down about **1%** for the year, with each quarter declining **0.5% to 2%**. This reflects a tepid market in DIY and general construction, though there are bright spots in professional markets. They believe it's prudent to anticipate a flattish revenue environment given the interest-rate-sensitive nature of their businesses.  **[SWK_3382094_12]** 

2. **Outdoor Margin Outlook**  
   **Q:** What is outlook for Outdoor margins?  
   **A:** The Outdoor business currently has margins below the company average. Management is adjusting the cost base to the new demand environment and considering pruning less profitable segments. They expect these actions, along with focusing on profitable categories, to improve profitability over time.  **[SWK_3382094_15]** 

3. **Portfolio Simplification**  
   **Q:** Will there be more portfolio pruning?  
   **A:** While significant pruning has occurred, management will continue evaluating opportunities over the next **18 to 24 months**. This may include parts of the Tools & Outdoor segment and portions of the Industrial businesses, aiming to create value for shareholders.  **[SWK_3382094_11]** **[SWK_3382094_13]** 

4. **DEWALT Growth and SG&A**  
   **Q:** What drives DEWALT growth and SG&A plans?  
   **A:** DEWALT is experiencing encouraging growth due to improved supply chain fill rates, a focus on pro-driven innovation, and increased market activation. Management is investing about **$100 million** in SG&A this year, with **$60–70 million** allocated to Tools & Outdoor, much of which supports DEWALT's innovation and field activation efforts.  **[SWK_3382094_10]** 

5. **Pricing and Competition**  
   **Q:** What are pricing expectations?  
   **A:** Management anticipates being **price/cost neutral** this year in a mildly inflationary environment. They see the competitive landscape as stable, with promotional levels returning to historical norms. The focus is on enhancing pricing processes and driving innovation for margin-accretive products.  **[SWK_3382094_16]** 

6. **Tariffs Impact**  
   **Q:** How would tariffs affect costs now?  
   **A:** Since 2016, the proportion of China-made products sold in the U.S. has been reduced from **40% to 20–25%**. If tariffs were reimposed, the company's exposure would be significantly less. They plan to mitigate any impact through supply chain adjustments and potential surgical pricing actions.  **[SWK_3382094_18]** 

7. **Retailer Inventories**  
   **Q:** What's the status of retailer inventories?  
   **A:** Retail inventories are at historical levels or slightly below, allowing for a direct correlation between point-of-sale data and shipments. Management is satisfied with current inventory levels and notes that POS trends are in line with projections.  **[SWK_3382094_14]**  

8. **Cash Flows and Asset Sales**  
   **Q:** Details on cash flows and asset sale proceeds?  
   **A:** The after-tax proceeds from the infrastructure sale are approximately **$730 million**, with a tax impact under **10%**. These proceeds were used to pay down commercial paper balances. Other cash outflows included a return to normal variable compensation payments and cash taxes.  **[SWK_3382094_11]** 

12fec2500484cd251e9fc98842203399c6b4a186451c5da87caeecd9c38cbfbb

1. **Gross Margin and EBITDA Outlook**  
   **Q:** Is the 35% gross margin target still achievable next year?  
   **A:** Management remains confident in achieving a **35%+ gross margin** in the fourth quarter of next year and reaching **$2+ billion EBITDA** by 2026, though timing may vary due to headwinds like softer sales and auto market delays.  **[SWK_3404327_10]** **[SWK_3404327_11]** **[SWK_3404327_13]** 

2. **Sales Outlook for Next Year**  
   **Q:** Do you expect sales to be flat or down next year?  
   **A:** They anticipate a **flat to down start** in 2025, more likely down, due to soft and choppy tools demand and ongoing auto headwinds, with updates to come when they provide guidance.  **[SWK_3404327_10]** 

3. **Accelerated Cost Initiatives**  
   **Q:** What are the accelerated activities to drive margin expansion?  
   **A:** They are accelerating initiatives in **sourcing**, **footprint**, and **platforming**, with a key focus on **footprint actions** to unlock margin improvements in 2025.  **[SWK_3404327_12]** 

4. **Shift to Organic Growth Strategy**  
   **Q:** How are you shifting from M&A focus to organic growth?  
   **A:** They are focusing on core brands, aligning around a **brand-centric culture**, enhancing innovation for professional users, speeding time to market, and investing in front-end activities to drive market share gains.  **[SWK_3404327_12]** 

5. **North America Market Share Dynamics**  
   **Q:** What's happening with market share in North America?  
   **A:** They are confident of being **stable to slightly growing** in market share this year; **DEWALT** brand is gaining share, while **CRAFTSMAN** is more impacted by weaker DIY consumer trends; they expect additional momentum as the consumer strengthens, especially in the back half of next year.  **[SWK_3404327_13]** 

8a758b25d1c3d09372de222f8cc452fcbbf5a672f7a3335aaa8adef73ebef44e

1. **Gross Margin Outlook**  
   **Q:** How confident are you in gross margin improvements in 2024?  
   **A:** Management expects gross margin to improve by roughly **300 basis points** throughout 2024, with significant gains in the back half of the year.  **[SWK_3371535_12]** **[SWK_3371535_14]**  They anticipate modest expansion of about **50 basis points** in the first half, despite factors like a heavier outdoor mix and under-absorption from low volumes.  **[SWK_3371535_12]** **[SWK_3371535_14]**  The company is confident in delivering these improvements.  **[SWK_3371535_12]** **[SWK_3371535_14]** 

2. **Investment Plans for 2024**  
   **Q:** What are your investment plans for 2024 and how will you manage them?  
   **A:** The company plans to invest around **$100 million** in 2024, primarily in innovation and market activation efforts.  **[SWK_3371535_13]** **[SWK_3371535_17]**  While they will monitor macroeconomic conditions closely, they aim to preserve these investments to support long-term growth, even if faced with market headwinds.  **[SWK_3371535_13]** 

3. **Price-Cost Dynamics**  
   **Q:** What's your outlook on cost inflation and price-cost dynamics?  
   **A:** The company expects a roughly **neutral price-cost** environment in 2024.  **[SWK_3371535_13]** **[SWK_3371535_16]**  Materials and freight costs are anticipated to be flat overall, with some fluctuations in inputs like steel and resins.  **[SWK_3371535_13]**  Maintaining this neutral position is important for the gross margin trajectory moving forward.  **[SWK_3371535_16]** 

4. **Free Cash Flow Expectations**  
   **Q:** How is free cash flow expected to progress in 2024?  
   **A:** Free cash flow in 2024 will be impacted by higher capital expenditures of about **$100 million** and increased cash restructuring charges around **$50 million**, primarily due to transformation initiatives.  **[SWK_3371535_12]**  The company also targets an inventory reduction of **$400–$500 million** in 2024, compared to the **$1 billion** reduction achieved in 2023.  **[SWK_3371535_12]** 

5. **Retail Channel Dynamics**  
   **Q:** What are the current dynamics in retail channels and promotional activity?  
   **A:** The competitive landscape remains stable with no significant changes in pricing or discounting.  **[SWK_3371535_15]**  Promotional activities have returned to normal rhythms consistent with **2019** levels.  **[SWK_3371535_15]** **[SWK_3371535_18]**  Inventory levels at major retailers are at historical norms, and the company expects promotional activity in 2024 to remain consistent with pre-pandemic levels.  **[SWK_3371535_15]** **[SWK_3371535_18]** 

6. **Manufacturing Footprint Changes**  
   **Q:** Are there changes to your sourcing and manufacturing footprint due to geopolitical factors?  
   **A:** The company continues to develop centers of excellence in Asia, Mexico, the U.S., and Eastern Europe to get closer to customers and enhance supply chain flexibility.  **[SWK_3371535_16]**  This strategy allows them to adjust supply if geopolitical conditions change, though significant shifts are not expected within the next **6 to 12 months**.  **[SWK_3371535_16]** 

bcc70da8c4929309bd635a4ea09caf5e5551610d70b03fb91caf7297ad9ceeab

- **Challenging macro environment is contributing to weakness in the Tools & Outdoor segment, particularly affecting consumer and DIY markets.**  **[SWK_3371535_16]** ,  **[SWK_3371535_15]**
- **Soft volumes and a muted market with little growth suggest that demand may not improve significantly in the near term.**  **[SWK_3371535_18]** ,  **[SWK_3371535_15]**
- **Customers are rightsizing inventories due to a tepid macro environment, which could lead to reduced orders and impact the company's revenue.**  **[SWK_3371535_15]**

a972b0408050ec6c693397c174d102594b302368d6326ea2fcbc4dc2601793f6

- **Stanley Black & Decker expects a softer top line in Q4, approximately **$100 million less** than previous expectations, due to weakness in outdoor and attachment tools segments and potential headwinds from the UAW strike affecting their fastening business.**  **[SWK_3362534_11]**
- **The company’s revenue and margin improvements for next year are heavily dependent on a stable or improving macroeconomic environment, with their **$4 to $5 EPS guidance** contingent on such conditions; any macro deterioration could put their targets at risk.**  **[SWK_3362534_9]**
- **Impairment write-downs on key brands like **IRWIN and Troy-Bilt** indicate challenges within these brands, and the company acknowledges weak points in outdoor and consumer trends, which could negatively impact future performance.**  **[SWK_3362534_13]**

b96fad3b6163a712d6837c98198a13f6ed08a025e7323d7275daa10f011f00c4

- **Stanley Black & Decker is investing $100 million in 2024, with over 75% focused on innovation and market activation, particularly in the Tools & Outdoor segment, to drive long-term growth and market share gains.**  **[SWK_3371535_13]**
- **The company is seeing strength in the professional tools segment, with point-of-sale levels above 2019 and strength in the pro customer base, positioning for share gains in a stable market.**  **[SWK_3371535_15]**
- **They are developing centers of excellence globally (Asia, Mexico, US, Eastern Europe) as part of their footprint transformation, enhancing operational efficiency and flexibility to adapt to geopolitical changes.**  **[SWK_3371535_16]**

9c555ed5e2a84a5da018136d9f812e157db5a2c131c6a6380738336fb3dc2084

- **Strategic Focus on Innovation and Market Share Growth:** Stanley Black & Decker is prioritizing innovation in high-margin, growth segments, particularly in the outdoor handheld electric market, which is showing significant progress. This focus is expected to drive market share gains and enhance profitability.  **[SWK_3382094_16]**
- **Supply Chain Transformation Enhancing Resilience and Margins:** The company has reduced its reliance on China for products sold in the U.S. from 40% to approximately 20–25% of U.S. revenue. Ongoing supply chain transformation, including the development of global manufacturing centers of excellence, positions the company to mitigate potential future tariff impacts and improve operational efficiency.  **[SWK_3382094_17]**
- **Positive Outlook for Outdoor Segment and Cash Flow Generation:** Stanley Black & Decker is experiencing a more traditional start to the outdoor season, which could put the Outdoor segment on a growth trajectory if the trend continues. Additionally, the company expects cash flow to improve, driven more by operating profits due to margin expansion, enhancing overall financial health.  **[SWK_3382094_9]**

47b29aae27bc60e6a457b3cf9ebf6594c7bb34ba1aff2d1736be434afb13fb93

- **Hand Tools segment experienced a 7% decline**, with larger ticket items being more sensitive to the current consumer environment, indicating potential weakness in consumer demand.  **[SWK_3382094_18]**
- The company expects **sales to be flat to slightly down for the rest of the year**, with each quarter potentially down **50 to 200 basis points**, reflecting cautious outlook due to **interest-rate-sensitive businesses**.  **[SWK_3382094_12]**
- **Consumer hesitation in purchasing larger ticket outdoor items** and ongoing challenges in the **Outdoor market**, including significant **inventory overhang** in the independent dealer channel, may hinder future sales growth.  **[SWK_3382094_16]**

0090aaa8db2f549eced61f3cffd17d3010b8191bf8aaf74254f97237973acc56

- **Potential tariff impacts on imports from China and Mexico may pose significant headwinds in 2025.** The company acknowledged that an incremental 10% tariff on Chinese imports could have an unmitigated annual impact of approximately $90 million to $100 million. While they plan to mitigate this through supply chain adjustments and pricing actions, there may be delays in implementation, leading to a net impact of $10 million to $20 million in 2025. Additionally, about 20% of their global cost of goods sold comes from Mexico, predominantly in the Tools and Outdoor business, which could be affected if tariffs on Mexican imports are enacted.  **[SWK_3414382_13]** ,  **[SWK_3414382_14]**
- **Increased investments in SG&A expenses, including hiring approximately 400 incremental field staff and spending on brand promotion and advertising, may pressure operating margins.** The company expects SG&A to remain around 22% of net sales in 2025. These investments, while aimed at driving growth, could weigh on profitability if not offset by sufficient revenue growth.  **[SWK_3414382_11]**
- **Gross margins are facing headwinds due to promotional activities and unfavorable automotive mix.** In Q4, promotional placements and automotive mix were cited as gross margin headwinds. While promotions drove growth, they resulted in a "slight marginal headwind" to gross margin, and the automotive mix was "a bit more of a headwind" in the quarter.  **[SWK_3414382_15]**

c1bda24f88259ccf238379d02a23758a8f0ea7785abef76818cb6f5a5dfaf9b7

1. **Tariff Impact and Mitigation**  
   **Q:** What's the net impact of tariffs and mitigation plans?  
   **A:** The unmitigated full-year tariff impact is **$90–$100 million**, but through pricing actions and supply chain shifts, we aim to reduce it to **$10–$20 million** in 2025. We've decreased China sourcing for U.S. sales from **40% to ~15%** over the past 7–8 years and continue to accelerate moving production out of China. Our long-term financial targets and margin aspirations remain unchanged despite temporary tariff headwinds.

2. **SG&A Investments and Margins**  
   **Q:** Will increased SG&A spending affect 2025 margins?  
   **A:** We expect SG&A as a percentage of net sales to be around **22%** in 2025, with slight seasonal fluctuations. We're investing heavily in our core brands—DEWALT, Stanley, and Craftsman—to drive growth, including adding **~400 field personnel** over the past 12 months. These investments support innovation, brand health, and market share gains without significantly impacting margins.

3. **Tools Segment Share Gains**  
   **Q:** How are you driving share gains in tools?  
   **A:** DEWALT has shown strong progress over the past **7 quarters**, and we plan to build on this success. We're also investing in Stanley and Craftsman to achieve stabilization and modest share gains this year. By focusing on professional users and accelerating product launches, we're aiming for low single-digit organic growth in tools.

4. **Regional Growth Composition**  
   **Q:** What's behind the tools growth in different regions?  
   **A:** In North America, our focus on the professional market and improved customer service are yielding results, particularly with DEWALT. In EMEA, strategic investments in key markets are paying off, leading to significant growth and market share gains. Overall, we're capitalizing on opportunities where we see better growth trajectories.

5. **Promotional Impact on Margins**  
   **Q:** Did promotions hurt gross margins this quarter?  
   **A:** Promotions had a slight marginal headwind on gross margins in the quarter, but we're satisfied with the results. The promotional placements drove growth and helped us return to our traditional promotional cadence. While there was a modest impact on price, the promotions focused on accretive products and contributed to a strong fourth quarter.

b363906a23d6ad1c8bfc9e09a68d140bd4c4cf9852e674d22c5a978fc989b471

e9e396542c0dc2a961674f7ee7178f2100cdb9fc8f5315ac638b4faf6a97c642

b76179723e5bcbb7cc4ffa36ea3dd2934d67a74a039ea1b48eca06f49952866b

Stanley Black & Decker Inc (SWK)

Financials