SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Stanley Black & Decker, Inc. - SWK
NEW YORK, April 26, 2023 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Stanley Black & Decker, Inc. ("Stanley" or the "Company") (NYSE: SWK). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The investigation concerns whether Stanley and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On April 28, 2022, Stanley disclosed that the Company's Tools and Outdoor net sales had dropped in the Company's first fiscal quarter of 2022 to $4.4 billion, and that Stanley was accordingly lowering its earnings per share ("EPS") guidance for fiscal year 2022. The Company also disclosed that Stanley's gross margin dropped "610 basis points from prior year as price realization was more than offset primarily by commodity inflation, higher supply chain costs to serve demand and lower volumes." On this news, Stanley's stock price fell $12.01 per share, or 8.6%, to close at $127.13 per share on April 28, 2022.
Then, on July 28, 2022, Stanley issued a press release reporting its second quarter financial results. In the release, Stanley disclosed that "significantly slower demand in late May and June [] drove the majority of challenges we faced this quarter" and that "[a]s the softening of the demand environment accelerated rapidly during the last portion of the quarter . . . [w]e are now preparing for demand to normalize closer to 2019 levels for the remainder of 2022." On an earnings call held that same day, the Company disclosed that, due to a sharp slowdown in consumer demand for power tools in May through June 2022, sales volumes had in fact shrunk by double digits, the Company's net income for its second quarter had plunged to $87.6 million compared to $459.5 million for the same period in the prior year, and that Stanley was cutting its 2022 EPS guidance by nearly half.
On this news, Stanley's stock price fell $18.87 per share, or 16.07%, to close at $98.58 per share on July 28, 2022.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
[email protected]
888-476-6529 ext. 7980
SOURCE Pomerantz LLP
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