Shares of Stanley Black & Decker Inc. SWK, +2.08% slid 15% premarket Thursday, after the tool maker’s second-quarter earnings fell far short of estimates, it slashed its guidance and announced cost cuts and an overhaul of its supply chain. New Britain, Conn.-based Stanley Black & Decker post net income of $87.6 million, or 57 cents a share, for the quarter, down from $459.5 million, or $2.75 a share, in the year-earlier quarter. Excluding one-time charges, EPS came to $1.77, below the $2.13 FactSet consensus. Sales rose 16% to $4.4 billion, but also missed the $4.7 billion FactSet consensus. “While the macroeconomic environment — including inflation, rising interest rates and significantly slower demand in late May and June — drove the majority of the challenges we faced this quarter, these headwinds underscore the need to accelerate our strategic transformation,” Chief Executive Donald Allan Jr. said in a statement. “As the softening of the demand environment accelerated rapidly during the last portion of the quarter, we began taking immediate corrective cost actions, which we are continuing to implement. We are now preparing for demand to normalize closer to 2019 levels for the remainder of 2022.” The company is planning program to draw down inventory and generate cash flow, cut costs and overhaul its supply chain. Inventory stood at $6.6 billion at quarter-end, up about $400 million from the first quarter. The rise was due to softer demand and supply chain constraints. The company is aiming to cut costs by $1 billion by end-2023 and by about $2 billion in three years. The company is expecting to take three years to overhaul its supply chain, moving closer to customers and achieving 35%+ adjusted gross margins. For the full year, Stanley Black & Decker is now expecting EPS of 80 cents to $2.05, down sharply from $7.20 to $8.30 previously. It expects adjusted EPS of $5.00 to $6.00, down from a prior $9.50 to $10.50. Shares have fallen 37% in the year to date, while the S&P 500 SPX, +2.62% has fallen 16%.