The first quarter saw Hamilton Beach return to profit as it generated revenue growth, but the company is concerned about 2025’s second half given tariff prospects.
Net income was $1.8 million, or 13 cents per diluted share, the company reported, compared to a net loss of $1.2 million, or eight cents per diluted share, in the year-earlier quarter.
Total revenue was $133.4 million versus $128.3 million in the year-prior quarter. The revenue growth reflected a favorable product mix and increased volume partially offset by pricing and foreign currency factors, the Hamilton Beach noted. Operating profit was $2.3 million versus an operating loss of $900,000, in the year-before period.
In the company’s North America Consumer segment, revenue increased driven, by growth in the United States market. In the Global Commercial segment, revenue declined slightly due to softness in international markets. HealthBeacon contributed $1.5 million of revenue in the quarter.
“Our first quarter results reflect solid improvement over last year even in the face of strengthening macroeconomic headwinds,” said R. Scott Tidey, Hamilton Beach president and CEO. “The positive momentum we generated in the fourth quarter carried into the start of 2025 as demand for our core U.S. consumer business continued to outpace the market. Higher overall sales combined with increased contributions from higher margin products and categories fueled gross margin expansion and expense leverage, resulting in a $3.2 million year-over-year increase in operating profit.”
Tidey added, “Prior to the most recent round of tariff hikes imposed on China in mid-April, we were confident in our ability to mitigate the initial 20% increase on our China-sourced product with only a slight impact to gross margins through increased pricing. While we have visibility into business trends over the next couple of months, the current tariff rates are creating a significant amount of uncertainty and have made it very difficult to plan for the second half of the year. We are working quickly to further diversify our sourcing base and implement additional measures to mitigate higher tariffs and expect these actions to benefit our margin profile in 2026.”
