Stanley Black & Decker (NYSE:SWK), a leading manufacturer of tools and outdoor equipment, reported mixed results for the third quarter of 2024 as its ongoing supply chain transformation efforts drove margin improvements, but soft demand across consumer and automotive markets weighed on sales.

The company's net sales for the quarter fell 5.1% year-over-year to $3.75 billion, missing analysts' estimates of $3.80 billion. Despite the revenue decline, Stanley Black & Decker's adjusted earnings per share (EPS) of $1.22 surpassed expectations of $1.05, reflecting the positive impact of its supply chain optimization initiatives.

A key highlight of the quarter was the significant improvement in gross margin, which rose to 30.5% from 26.8% a year earlier. This achievement was largely driven by the company's disciplined execution of its supply chain transformation program, which aims to streamline operations, consolidate facilities, and reduce product complexity.

Donald Allan, Jr., Stanley Black & Decker's President and CEO, commented, "In the third quarter, we continued to deliver gross margin improvements as well as robust cash generation, all as a result of solid execution against our operational priorities." He further emphasized that while weak consumer demand and automotive production impacted organic revenue, the company capitalized on relative bright spots, delivering its sixth consecutive quarter of growth for its DEWALT brand and higher sales in aerospace fasteners.