Stanley Black & Decker reported its 2024 first quarter financial results on May 2, which showed further sales declines but higher margins for the maker of hand tools, power tools and tool storage products.

SBD posted total 1Q sales of $3.9 billion, down 2% year-over-year as growth in its DEWALT brand and Engineered Fastening was more than offset by lower infrastructure volume and “muted consumer and DIY demand.” 1Q organic sales fell 1% year-over-year.

The company’s 1Q gross margin of 28.6% jumped 740 basis points year-over-year, with adjusted gross margin of 29.0% up 590 bps.

SBD had a 1Q net profit of $19.5 million, while adjusted EBITDA margin of 8.9% nearly doubled the 4.5% of a year earlier.

By SBD business unit in 1Q:

• Tools & Outdoor sales of $3.315 billion dipped 1% year-over-year, same with organic revenue. SBD said volume growth in DEWALT was more than offset by a muted market demand backdrop that contributed to lower volume. Organic revenue fell by 2% in North America; fell by 3% in Europe; and improved 7% in Rest of World. Adjusted segment margin of 8.5% dwarfed the 3.0% of a year earlier.
• Industrial sales of $616 million fell 5% year-over-year, with organic revenue down 4% as a 1% pricing benefit was more than offset by a -5% impact of lower volume — exclusively in Infrastructure. Adjusted segment margin of 12.1% topped the 11.0% of a year earlier.

SBD’s 2Q began with the completed divestment of its Stanley Infrastructure unit on April 1. Sold for to Epicoc AB for $760 million, SBD plans to use the proceeds to reduce short-term debt.

Looking forward, SBD’s updated 2024 full-year guidance calls for total organic sales growth in the low single digits, with adjusted EBITDA margin of approximately 10%.