There has been increased chatter on social media about Snap-on’s prices, and so I was curious to see how their annual sales revenue might have changed over the years – if at all.
Tool buying has also changed a lot in the past 10+ years, with online purchasing being bigger than ever. Additionally, we saw a majority of users shift from desktop and laptop browsing and buying to smartphone use.
Here’s a look at Snap-on’s net sales for the past 15 years, with figures pulled from their annual reports.
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- 2009 – $2.36 billion
- 2010 – $2.62 billion
- 2011 – $2.85 billion
- 2012 – $2.94 billion
- 2013 – $3.06 billion
- 2014 – $3.28 billion
- 2015 – $3.35 billion
- 2016 – $3.54 billion
- 2017 – $3.69 billion
- 2018 – $3.74 billion
- 2019 – $3.73 billion
- 2020 – $3.59 billion
- 2021 – $4.25 billion
- 2022 – $4.49 billion
- 2023 – $4.73 billion
In their 2023 filing, Snap-on’s CEO said:
We’re encouraged by our 2023 performance which reflects steadfast progress along both our runways for growth and our runways for improvement, and aligns with our ongoing, longer-term expectations for sales and operating income expansion, all achieved against the significant variation and turbulence that mark the commercial arenas of today.
From the figures, it definitely looks like Snap-on has been making “steadfast progress” towards sales growth.
Snap-on splits their net sales into 3 main categories.
Looking at their 2023 breakdown, 53% of their net sales came from tools, 21% from diagnostics, information, and management systems, and 26% from equipment.
They also provide a revenue breakdown by operating segment:
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- Snap-on Tools Group – 37%
- Repair Systems & Information Group – 31%
- Commercial & Industry Group – 26%
- Financial Services – 6%
While best known for their namesake tool brand, Snap-on is a very large company with many other brands.
It’s difficult to tell whether Snap-on’s franchise-based operations are losing favor with their main tool users – mainly automotive repair and maintenance techs.
But, a steady increase in sales revenue suggests that things haven’t been changing much for Snap-on as a whole.
I was surprised to see that financial services make up a very small part of Snap-on’s overall revenue. However, this might not include loans or payments made to their franchisees by end tool users.
For that matter, their sales revenue might include direct sales to end users and also sales to franchisees for sale to end users.
Al
Fascinating. Over the past 15 years, tools from oversees have improved significantly. Pricing for those tools are a fraction of the cost. Everyone said the concept of a tool truck and overpriced tools will soon be history. Facts are facts.
This above can still all be true and Snap-on just decided to shift their investments to the other sectors. Im not going to pretend i can research this and know what im reading. I will say that either way its impressive. Either they went against the odds and the tool truck and overpriced tools lives on, or they saw the potential downfall and made other profitable investments.
Jared
I would have thought the world of online retail would have impacted Snap-on too. Maybe it did and net sales just doesn’t show it. E.g. even for someone working in a shop where the truck regularly visits – is that faster than next-day Amazon delivery?
Aaron
When it comes to Made in USA tools, Snap-On is becoming the only game in town. Where else will will a financially endowed USA patriotic type find power or certain hand tools (adjustable wrenches, locking pliers, cordless drills, etc.) that are manufactured in the USA?
Jared
Tekton, Proto, Wright, Williams (admittedly a Snap-on brand)… those are the only manufacturers offering a full portfolio of USA-made tools that come to mind. Then you have to start shopping around based on the specific tool, Channellock, Bonhus, Eklind, Malco, Mayhew, Wilton, etc.
Dewalt and Milwaukee make some power tools in the USA, though I appreciate some get upset at the “with Global Components” part, or complain about Milwaukee’s ownership.
It’s a dwindling pool of candidates, to be sure.
Chris
In just the past few years we’ve lost western forge, SK, Armstrong, Allen, and a handful of other US brands.
Ron
This is why Snap-On will continue to gain momentum. Eventually, if they haven’t already, they will corner the market here in the US. Every union shop, (auto plants, Aerospace…etc) buys American made tools and always will.
al
Why do aerospace tools need to be American made? I kinda understand some union shops…but there are unions in Europe with some much older tool brands.
I know DMC tools (sold by Boeing to customers) aren’t all American made. Their electric crimpers are over 4-grand, with software and chassis from a German company (Klauke?) and 18V batteries by Makita.
DRT42
I’m responding to Al. I know you said “not all DMC crimpers are US made” . I’m not disagreeing, but I think some are still US production. I have three of the hand crimpers and several die sets. I believe those are all US production, at least they were when I acquired them. Stupid pricing, too. DMC stuff is really expensive. But, it works really well and nobody wants a wire to fall out of the avionics of an airplane.
Johnez
Far from “full portfolio.” Tekton only has about 25% of it’s tools made here. Many/most of their offerings are simply rebrands, off the top of my head-pry bars (Wilde), alligator type channel locks (Wilde), and pliers racks (Ernst). I have to give Tekton credit for putting in the effort to bring production back here though, their crowfoot project is admirable and needs to be applauded. Proto has shipped a portion of production to Taiwan. Williams has also shipped some production to Taiwan. Klein used to be a bright star with an impressive array of tools for pros, many/most their prograde stuff is made here, but having their 10-in-1 is made in Taiwan shows another shift oversees.
Julian Tracy
I’ve never been impressed with the tip strength of Klein screwdrivers, USA made or not. Kind of like the old USA made craftsman ratchets – they were usable, but that’s about it.
Josh
As a fairly avid DIY type with a preference for quality and US made tools it’s increasingly difficult to get the good stuff.
I feel like these old line companies are missing out by relying on their existing distribution network. I’d love to have more Wright or Snapon in my collection but the industrial supply house that distributes Wright in my area is a M-F 9am-5pm outfit and no Snapon truck guy will give me the time of day.
As a result I’m slowly accumulating more Harbor Freight, Amazon Prime and Tekton because the convenience of it. Tekton also has a growing selection at my local Farm Store. My wallet is thankful but I wish I had better access. Even the online retailers that deal in Wright have terrible web marketing – often incomplete descriptions and no photos on the purchase pages
Leo B.
Martinez Tool is an US made option as well
JR Ramos
6% on financing profit is actually pretty large for a company like theirs.
The net sales figures don’t mean much if you want a meaningful glimpse at the company as a whole. I mean they aren’t hurting and are doing well, but for multi-year comparison look at other stats. Comparing cost of goods sold to sales would be a clearer glimpse and adjusting for inflation as well since it’s such a long spread you’ve presented here.
They’re introducing new tools, buying companies, and building new facilities, so those are usually great signs of health (definitely not always, however).
I think there’s probably a significant amount of any rise in sales that can be attributed to direct sales to the average joe consumer, which is relatively new for them. Casual observation over the years (including this site) would suggest that many pro users have shied away from SnapOn in favor of less expensive alternatives (Tekton, Sunex, Icon, Gearwrench, etc, etc) for core items, so the big increase in dollars must have additional sources of sales if not just increase in the retail pricing (why comparing cost of goods is important).
JR Ramos
…and comparing the figures for the operating segments/proportions as far back as that might be available compared to the list of years for net sales.
Robert
Agreed. For apples to apples comparison, the sales figures need to be normalized for inflation.
Doing so, the 2023 figure of 4.73 billion is 3.33 billion in 2009 dollars.
Using
https://www.usinflationcalculator.com/
So a gain of 1.41 billion in 14 years, about 10% growth rate (anon-compounded) per year, pretty steady. Good steady growth, particularly as Snap-on is not a distributor company, more of status quo.
fred
I’ve always thought of ROIC (possibly ROE) as a better measure of performance, SnapOn seems to be dropped a bit from pre-pandemic levels (26.02% in June 2017) but is still in the healthy range of 21 to 22% over the last 2 years – recovering form 18% lows during the pandemic. But even 18% is strong performance.
MM
This is interesting! I’d have thought that online sales from competing brands would have cut hard into their tool sales. However I think part of the reason for their success is that they’ve been branching out into partnerships with other brands. Last week I discovered they now appear to either own or Lindstrom in the USA. I contacted Lindstrom via their website to ask about warranty service for the handles on a pair of diagonal cutters I bought more than 20 years ago. A couple hours later I got an Email from a gentleman at Snap-On corporate whose title read “National Sales Manager” for Lindstrom tools.
Their service was fantastic by the way, even though it had been many years since I bought those tools, I no longer had any proof of purchase, and I wasn’t even sure my issue was warrantable in the first place, they sent me new handles straight away at no cost, no questions asked.
MM
Whoops, I had meant to say “either own or represent Lindstrom”
JR Ramos
Yes, they own SNA Europe, which is several well known manufacturers. Lindstrom, Bahco being the best known probably.
Jared
I’m surprised too. There are faster, more-convenient alternatives (primarily because of Amazon), there are objectively similar performing tools for less money (at least in most cases) and other readily-available reputable USA-made brands, often for less money.
Snap-on is still special, I’m not poo-pooing the brand. It’s consistently top-tier performance. You can pick a Snap-on tool without worrying over whether it will be good.
It’s just that there is competition for each of the attributes that made Snap-on different. I assumed that competition would be bad news for the company.
OldDominionDIYer
No way to know for sure but, “progress along both our runways for growth and our runways for improvement” would seem to indicate that the growth was in other areas not in the traditional methods (IE: tool truck) and no way to tell what other companies contributed in what way other than Snap-On. Still would be shocked if tool truck sales were increasing but hey you never know, they are, after all the Gold standard. I have a set of 1/2″ drive sockets from 1957 that my Grampa purchased new and they’re still working great and he owned a garage and did lots of repairs, it appears three items were replaced the ratchet and two sockets since their date code is a few years later. Pretty amazing tools.
Saulac
Surprising. Good for them. A few year back, I shook my head at those SO pressure washers showed up everywhere. Then lately all those “same as SO” videos all over social media. I would have guess that they are surviving at best.
DC
Love my Snap-on tools. Haven’t bought anything in years. I just go visit my driver when ho visits his usual shop. I see young techs come in buying up a storm even if they don’t need it just to brag he owns SO tools. My driver tries to discourage them to make that purchase.
Neighbor Joe
Yea, Ok. But that revenue comes on the backs of hard working mechanics. Some of whom are in debt with Snapon for thousands of dollars.
IronWood
Everyone’s revenue comes on the back of indebted US consumers. That’s the economy.
Kentucky fan
Snap on has a lot of revenue coming from things other than the tool truck. Their industrial brands are very good and prevalent in supply house catalogs. They make cat hand tools and I’m sure those are very common considering cat has a comical amount of techs in the field.
IronWood
I was thinking that too. I imagine a lot of growth is from their industrial brand (or rebranded/licensed) sales, including things like CDI torque products that I’ve seen sold by a bunch of outfits.
Kentucky fan
Yeah I think snap on see the writing on the wall years ago and has really diversified their portfolio into other areas. Quite frankly for the home gamer they are pricey but the cat branded tools and the Williams line are fantastic value for the quality level you receive. Full price tool truck snap on is only worth it for the professional mechanic with that being said you’ll never pick up a snap on tool from any of their brands and be disappointed in quality without them making it right.
Analyst
By comparison Harbor Freight has grown from 5.4 billion in 2021 to a company that will exceed 8 billion dollars this year. Interesting…
fred
Might this say something about the American consumer? The HF experience suggests that low price outweighs COO for many consumers. It remains to be seen if HF can remain on that trajectory – while trying to move upmarket with Taiwanese sourcing of some of their premium line tools like the Ikon line.
Al
Low price and consistency. HFT has taken over where Sears brick-and-mortar stores were for tools.
I can walk into a store and pick up a tool right now. That’s better than 2-day or next-day Amazon with fake brand tools.
The devil you know.
Amatts
Irregardless of COO snap on has divisions that most do not know of. Like Starrett they can make custom tools to order
TomD
42% of that change can be attributed to inflation – 2.36$ is 3.35$ in 2023.
Still, that leaves $1.38 billion in real growth, or about 29%.
SamR
I wonder how much of sales come from Government/Military orders. I think those orders play a significant role!
doneanddusted
I figure they’ll just sell one pair of Talon pliers for $5B and make their numbers for the year.