Hamilton Beach Brands Holding Company announced its second-quarter revenue decreased against a record level in the year-earlier period, adding demand for small kitchen appliances, while softer than 2021, remains significantly higher than pre-pandemic levels.
Total Hamilton Beach revenue decreased by $7.1 million, or 4.5%, to $147.5 million compared to $154.7 million a year earlier. Sales declined in most of the company’s consumer markets compared to the prior year, which included the favorable impact of U.S. government stimulus checks on consumer spending. Partially offsetting the decline was a revenue increase of $4.1 million, or 37.3%, in the company’s global commercial market. Revenue decreases in the Company’s U.S., Latin American and Mexican consumer markets were partially offset by increased revenue in the Canadian consumer market.
Hamilton Beach corporate e-commerce sales increased 8.3% and accounted for 37.3% of total revenue compared to 32% in the second quarter of 2021, according to the company.
Gross profit in the quarter was $32.0 million compared to $28.4 million in the year-earlier period, aided by the impact of a full quarter of price increases that offset higher product and transportation costs, the company reported. Operating profit was $5.4 million compared to $0.9 million a year earlier.
Hamilton Beach net income in the second quarter was $5.1 million, or $0.36 per diluted share, compared to a net income of $0.1 million, or $0.01 per diluted share in the same period in 2021.
Hamilton Beach reported that industry-wide demand for small kitchen appliances in the U.S. had slowed somewhat compared to the company’s previously stated outlook, however, it remains significantly higher than pre-pandemic levels and only slightly softer than 2021.
The company indicated it continues to experience significantly higher transportation and product costs due to inflation and ongoing supply chain constraints. To help mitigate some of the cost increases, Hamilton Beach said it has implemented additional pricing initiatives to become effective in the third quarter of 2022 and expects to continue adjusting prices as necessary while remaining competitive with customers and consumers.
Citing moves by major retailers to reduce or cancel orders in the face of oversupply, Hamilton Beach said it is not in an overstock position, and it expects to significantly reduce current levels by the end of the year through ongoing placements and purchase order management.
The company cited several long-term growth initiatives focused on long-term growth, including growth in home health and wellness; gains in the premium appliance market; innovation-driven growth in core brands; and accelerated digital marketing and commerce.
The company, in a licensing partnership with The Clorox Company, introduced new products in the Clorox air purifiers and Brita counter water-filtering appliances. The company also plans a 2022 launch of the second-generation Bartesian cocktail machine and Bartesian Duet, a smaller 2-bottle model. It also is expanding the CHI garment care brand.
Hamilton beach said it plans to drive the growth of its flagship Hamilton Beach and Proctor Silex brands through innovative new product development, including an emphasis on higher-priced products and digital marketing.
