Finance Guy
Well-known member
A few tidbits from the SBD conference call (from memory, transcript not available yet):
1) They continue to tell investors that they intend to honor the Sears Craftsman warranty … they have already booked a liability related to future warranty claims, and said they would increase the liability if the Sears bankruptcy converts to a liquidation.
2) Though they did not say it, it sounds like they view Irwin (and perhaps, to a lesser extent, Lenox as well) as brands that will be marketed primarily in emerging markets … as such, I surmise that we will probably see substantially fewer Irwin tools (and Lenox hand tools) at Lowe’s.
3) Higher prices are coming in 2019! While they believe their domestic manufacturing footprint will enable them to better withstand higher tariffs (relative to competitors), such tariffs are increasing input prices … and they will get passed on to the consumer.
4) They did say something to the effect of higher tariffs will benefit their strategy (already in place) of “manufacturing where you sell” … i.e., continuing to increase domestic manufacturing capacity.
5) I guess lastly (as I submitted in a separate thread), Stanley and Stanley FatMax will now be sold exclusively (at least with regard to home improvement stores) at Home Depot … again, I surmise that this enables SBD and Lowe’s to make space for the Craftsman rollout.
1) They continue to tell investors that they intend to honor the Sears Craftsman warranty … they have already booked a liability related to future warranty claims, and said they would increase the liability if the Sears bankruptcy converts to a liquidation.
2) Though they did not say it, it sounds like they view Irwin (and perhaps, to a lesser extent, Lenox as well) as brands that will be marketed primarily in emerging markets … as such, I surmise that we will probably see substantially fewer Irwin tools (and Lenox hand tools) at Lowe’s.
3) Higher prices are coming in 2019! While they believe their domestic manufacturing footprint will enable them to better withstand higher tariffs (relative to competitors), such tariffs are increasing input prices … and they will get passed on to the consumer.
4) They did say something to the effect of higher tariffs will benefit their strategy (already in place) of “manufacturing where you sell” … i.e., continuing to increase domestic manufacturing capacity.
5) I guess lastly (as I submitted in a separate thread), Stanley and Stanley FatMax will now be sold exclusively (at least with regard to home improvement stores) at Home Depot … again, I surmise that this enables SBD and Lowe’s to make space for the Craftsman rollout.
