Stanley Black & Decker Stock Is Falling After Earnings. Tariffs Are Taking a Toll.

The tool company expects to incur a gross annualized tariff impact of about $800 million this year. (Angus Mordant/Bloomberg)

Shares of Stanley Black & Decker were falling sharply Tuesday after the tool maker’s second-quarter earnings report revealed the full brunt of tariffs on its business.

The company posted adjusted earnings of $1.08 a share, well above analysts’ consensus estimate of 42 cents, but down from $1.09 last year. Revenue fell to $3.95 billion from $4.02 billion last year and missed Wall Street’s call for $3.99 billion.

Stanley Black & Decker shares were falling 6.7% in premarket trading Tuesday.

Tariff-related shipment disruptions and a slow outdoor buying season drove the decline in revenue, the company said. Sales volume fell 4% from a year prior, though price growth and a favorable foreign-exchange environment offset some of the drop.

Moving forward, Stanley Black & Decker expects to incur a gross annualized tariff impact of roughly $800 million this year, with earnings forecast to decline by about 65 cents a share after tariff-related price adjustments and supply shifts. Tariffs lowered the company’s margins by 3 percentage points in the second quarter.

“The organization is executing a robust plan designed to mitigate tariffs and is prioritizing adjustments to its supply chain that leverage the strength of our North American footprint while optimizing our overseas supply chain inputs for the U.S. market,” said Chief Operating Officer Christopher J. Nelson.

Stanley Black & Decker shares have fallen 7.9% in 2025 and 30% over the last 12 months as of Monday’s close.

Write to Nate Wolf at nate.wolf@barrons.com