Stanley Black & Decker’s (SBD) Craftsman brand will hit $1 billion in annual sales by 2021, six years ahead of the original plan due to a strong initial reception from consumers and Sears’ bankruptcy, say SBD executives.

SBD purchased the brand from Sears in 2017 and launched sales of newly designed products earlier this year through Lowe’s and Ace Hardware. Most of the 1,200 products introduced so far have been internally developed and manufactured, but the brand also has added more than 20 licensees, including Briggs & Stratton (pressure washers) and GreatStar (flash lights and lanterns).

When it sold the brand, Sears retained a royalty-free licensee to develop and sell Craftsman product through its own stores. A smaller, restructured Sears – it recently moved to close another 142 stores – would “clearly be a positive” for SBD’s Craftsman business, SBD CEO James Loree said as the company reported earnings for Q3 ended September 30.

Sears’ 15-year license end if it liquidates, but SBD is still required to make a $250 million one-time payment in March 2020, while also starting to make quarterly royalty payments, SBD CFO Donald Allan said.

The addition of the Craftsman also has enabled SBD to “unlock” other brands in its portfolio to “exploit opportunities” to gain share at retailers that don’t carry Craftsman, Allan said.

SBD’s Q3 net income fell 9.5 percent to $248 million as it incurred $85 million in merger- related costs and restructuring charges. Revenue increased four percent to $3.49 billion.

Contact:

Stanley Black & Decker, Donald Allan, CFO, 860-225-5111, Donald.allan@sbdinc.com