Why Stanley Black & Decker Stock Tumbled by 7% on Tuesday

Key Points

• Tariffs are taking quite a toll on the company.

• Despite a bottom-line beat for its second quarter, profitability fell during the period.

• 10 stocks we like better than Stanley Black & Decker ›

Despite decades of experience and renown as a toolmaker, Stanley Black & Decker (NYSE: SWK) couldn't fix investors' sentiment about its stock Tuesday. On the back of dispiriting second-quarter results published this morning, those folks sold out of the company's shares, leaving a more than 7% slide in price. That was a far steeper fall than the S&P 500 index's 0.3% dip.

It's tough living with tariffs

Stanley Black & Decker's just-reported quarter saw the company book revenue of $3.9 billion, which was down by 2% year over year. Management attributed this to a sluggish outdoor buying season, combined with shipment disruptions directly related to the tariffs imposed by the current presidential administration.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Image source: Getty Images.

Similarly, profitability also obeyed gravity. Adjusted net income slipped by almost 1% to slightly over $163 million, or $1.08 per share.

The consensus analyst estimate for revenue was $4 billion, while it was $0.41 for adjusted profitability.

In the earnings release, management pledged to overcome the company's current difficulties.

It quoted current chief operating officer and incoming CEO Christopher Nelson as saying that it "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."

Annual profit prediction

Stanley Black & Decker also proffered guidance for the entirety of 2025, predicting that it will earn roughly $4.65 per share in adjusted net income.

That might see some adjustment, since it's predicated on an approximately $800 million financial hit from tariffs during the year. Considering the speed with which President Donald Trump has negotiated down certain rates, however, levies on our trading partners might have considerably less impact as 2025 wears on.

Should you invest $1,000 in Stanley Black & Decker right now?

Before you buy stock in Stanley Black & Decker, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Stanley Black & Decker wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $633,452!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,083,392!*

Now, it’s worth noting Stock Advisor’s total average return is 1,046% — a market-crushing outperformance compared to 183% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 29, 2025

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.