Snap-on Incorporated (NYSE:SNA) Q4 2023 Earnings Call Transcript

David McGregor: Right. The last question for me is just maybe on the competitive dynamics. You’ve been fairly steady in terms of the number of trucks you have on the road now for quite a number of years. gather, maybe there’s a few more company-owned versus franchise within the mix overall. But at the same time, your competitors have been increasing the number of trucks on the road. You sense this is starting to have a little bit of an impact on it. Do you feel like maybe there was a little bit of share loss this quarter versus some of your peers?

Nicholas Pinchuk: I don’t know. I don’t like to – I never like to talk about share. I never talked about share when our numbers were booming upwards, and I don’t talk about it now. You could think that, but I don’t think so. I think, look, we got – we have – I don’t think – I think we’re covering the universe with the 3,400-or-so franchisees that we have – so you could argue that some locations might be seeing competition where they haven’t. But there are a few locations, David, that don’t have any competition. So what does happen sometimes is tough, okay, somebody one or two or three. One of the other competitors will put somebody in place. But that guy, our guy in that territory has already been dealing with people and the other guy has its own competition and it might create more business.

But I never hear the franchisees saying that. Why you logically might think that would be the case, and we think about it all the time, and I ask the question all the time, but they almost never say that. In fact, never.

David McGregor: Are you seeing any change in franchisee attrition rates?

Nicholas Pinchuk: No, that’s pretty held the same, pretty much the same in the quarter. So franchisees, just in the quarter, we saw more – I think we saw more longer than the Tool guys leave in the quarter, an interesting phenomenon. But that was – that’s just a sort of anecdotal view of it. I don’t not sure that could make some difference, but I don’t think we worry about that in particular in terms of the day-to-day dynamics of the competition.

David McGregor: Got it. Thanks very much. That’s all I’ve got. Good luck, gentlemen.

Nicholas Pinchuk: Hi, thanks.

Operator: This concludes the question-and-answer session. I would like to turn the conference back over to Sara Verbsky for any closing remarks.

Sara Verbsky: Thank you all for joining us today. A replay of this call will be available shortly on snapon.com. As always, we appreciate your interest in Snap-on. Good day.

Operator: The conference is now concluded. Thank you for attending today’s presentation. You may now disconnect.