Stanley Black & Decker Raising Prices to Offset Tariff Costs

The maker of DeWalt power tools and Craftsman wrenches said that the tariff fight kicked off by President Trump is expected to dent its full-year earnings per share by about 75 cents as it takes action to mitigate new costs.

Those countermeasures include increasing prices and overhauling the supply chain to stop sourcing from China, executives said on a call with analysts.

“Supply chain adjustments require time to implement,” Chief Operating Officer Christopher Nelson said. “Pricing actions are the quickest countermeasure at our disposal.”

The company is gearing up for a period of reduced visibility, albeit with relatively stable demand trends so far, according to Chief Executive Don Allen.

“While we don’t know the full picture of how tariffs will impact the U.S. economy or demand in our categories, we are preparing ourselves for multiple demand scenarios this year,” Allen said.

In response to the Trump administration’s tariff campaign, management introduced a high-single-digit percentage price increase in its U.S. tool and outdoor business in April and has notified customers that it expects to raise prices again at the beginning of the third quarter.

The company is also accelerating changes to its supply chain. Executives said they are working to eliminate the toolmaker’s reliance on China, which currently accounts for about 15% of its supply chain for the U.S. market, in the next 12 to 24 months and move more of its supply chain into Mexico, Nelson said.