New Britain, Connecticut-based industrial tools manufacturer Stanley Black & Decker reported its first-quarter 2023 financials on May 4, showing a considerable decline in sales compared to a year earlier.

Stanley Black & Decker posted net sales of $3.9 billion in 1Q, down 12% year-over-year. Contributing to the sales decrease were lower volume (-11%), currency (-2%) and the July 2022 divesture of the company’s Oil & Gas unit (-1%), according to a news release. Stanley Black & Decker’s sales were flat in 4Q 2022 after sales were up 9% in 3Q.

Adjusted gross margin was 23.1% in 1Q, up 360 basis points sequentially from 4Q, but down from 31.3% from 1Q 2022 due to impact from production curtailments, destocking high-cost inventory, commodity inflation and lower volumes, the company noted.

Stanley B&D’s Tools & Outdoor segment sales decreased 13% year-over-year in 1Q, hampered by a slow start to the retail outdoor season due to a cold March. The company’s Industrial segment sales were down 5% year-over-year as a result of the Oil & Gas divesture.

“We have become a more focused company with core market leadership positions in Tools & Outdoor and Industrial, built on the strength of our people and culture,” Stanley Black & Decker President and CEO Donald Allan Jr. said in the release. “While the near-term demand environment remains dynamic, the long-term opportunity in our key markets remains compelling. We are making strategic investments behind our strong, iconic brands, innovation engine, electrification and commercial activation to position the business for sustainable growth and margin expansion.”

The 1Q sales drop comes after Stanley Black & Decker announced in late March it would be cutting costs over the next few years. Among those cost-cutting measures were the closures of plants in South Carolina and Texas, resulting in over 350 layoffs.

“In the first quarter, we incrementally reduced inventory and generated additional cost savings, both consistent with our objectives for the year,” Stanley Black & Decker Executive Vice President and CFO Patrick Hallinan said in the release. “The organization is focused on executing our business transformation initiatives to deliver the cost savings that are largely within our control and help us navigate a range of 2023 demand scenarios. We are prioritizing cash generation, gross margin improvement and balance sheet strength, and by executing against these priorities, we are positioning the company for long-term growth and value creation.”

Stanley Black & Decker Appoints Tools & Outdoor Leader

On May 2, Stanley Black & Decker announced the appointment of Chris Nelson as Chief Operating Officer, Executive Vice President and President of Tools & Outdoors, effective June 14.

Nelson has over 25 years of leadership experience in general management and product development, most recently serving as President of HVAC with Carrier Corporation.

“Chris is an experienced global leader with exceptional industry knowledge and existing relationships with many of our customers,” Allan said in a news release. “His track record of success implementing growth strategies, which have delivered customer-centric innovation and profitable market share expansion, makes him an ideal leader to join Stanley Black & Decker at this point in our transformation.”

Nelson will assume the role of President of Tools & Outdoor from acting co-Presidents Robert Raff and John Wyatt, according to the release. Raff will remain in the Tools & Outdoor segment as Chief Commercial Officer while Wyatt will become Senior Vice President of Strategy and Integration.