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Key Takeaways

• Stanley Black & Decker said Wednesday it is working to raise prices and shift its supply chain in response to the Trump administration's tariffs.

• The tool maker raised prices once this quarter, and said it expects to do so again by the start of the third quarter.

• The company's first-quarter results topped estimates, but the tariff concerns sent its shares lower Wednesday.

Stanley Black & Decker (SWK) shares fell Wednesday as the power tool maker anticipates the Trump administration's tariffs negatively affecting its profits this year as it alters its supply chain and raises prices.

"In light of the current environment, we are accelerating adjustments to our supply chain and exploring all options as we seek to minimize the impact of tariffs on end users while balancing the need to protect our business and our ability to innovate for years to come," said CEO Donald Allan. "With that in mind, we implemented an initial price increase in April and notified our customers that further price action is required."

Tariffs Expected To Create 75-Cent EPS Hit

The maker of its namesake brands, along with DeWalt and Craftsman tools, said it currently projects that tariffs and the adjustments it makes in response will negatively affect full-year earnings per share (EPS) by 75 cents. The company expects its second price increase to go into effect at the start of the third quarter this summer.

"If the demand environment shifts, we expect to adjust our costs and inventory to protect earnings power and cash flow, while preserving our growth investments," said CFO Patrick Hallinan.

The tool manufacturer topped first-quarter estimates Wednesday, with its $3.74 billion in sales and adjusted EPS of 75 cents each landing above the analyst consensus compiled by Visible Alpha.

Stanley Black & Decker shares were down 4% in recent trading at $58.76 and have lost more than a quarter of their value since the start of the year.

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