Hamilton Beach, after recording stronger year-over-year revenues and profits in its third quarter, updated its guidance, citing more cautious inventory commitments by key retailer customers.
Net income was $3.5 million, or 26 cents per diluted share, versus $1.7 million, or 12 cents per diluted share, in the year-prior quarter, the company noted.
Total revenue advanced 5.6% in the quarter to $140.3 million, primarily driven by growth in the Hamilton Beach U.S. consumer business that reflects recovery from the third quarter of 2025, when one large retailer delayed orders as it assessed inventory and pricing in response to the tariffs implemented by the United States in April 2025, according to Hamilton Beach. The growth also was supported by strong double-digit revenue gains in the health business, Hamilton Beach reported.
Operating profit was $4.4 million versus $2.9 million, in the year-before quarter.
In the company’s guidance, Hamilton Beach stated that, based on more cautious retailer inventory commitments emerging from a softened consumer outlook, it now expects 2026 revenue to be flat year over year compared to prior guidance of growth approaching the mid-single digit range. The company said it expects operating profit to decline in the high teens on a percentage basis compared to the previous estimate of high single digits. The operating profit forecast continues to reflect an incremental $6 million in planned advertising spend in 2026 to support the company’s strategic growth initiatives and $5 million in non-recurring accelerated depreciation associated with a legacy ERP system, according to Hamilton Beach.
In a conference call, R. Scott Tidey, Hamilton Beach president and CEO, said, “We continue to execute against our new product pipeline with several launches in the quarter. Our increased marketing investment is intended to build awareness of these innovations, strengthen consumer demand and support their growth at retail. We introduced two new single-serve coffee platforms, bringing much-needed innovation to the category, as well as several new irons, air fryers and multi-cooker products. ”
Tidey added, “Looking ahead, we will be launching our HB Professional kettle in the fourth quarter, the first in a series of reimagined products under our new experience brand language, with additional HB Professional products still in development. “
Tidy said Hamilton Beach implemented initial website improvements that support search and demand generated by artificial intelligence while also moving forward with a test of AI-optimized product content. The company launched a paid ChatGPT advertising pilot and activated a new AI search measurement platform to benchmark visibility of the company’s products against competitors, he noted.
In announcing the financial results, Tidey said, “Our third-quarter results were in line with our expectations and reflect the recovery of our U.S. consumer business following last year’s tariff related headwinds, coupled with the margin benefits from our ongoing tariff mitigation actions. We are encouraged with the underlying health of our business and continued solid sell-through of our brands and products. Unfortunately, with consumer sentiment declining over the past couple of months, several of our retail partners have become more cautious with their inventory commitments for the upcoming holiday season. As a result, we now expect fourth-quarter sales to be lower than previously anticipated and have revised our full-year outlook accordingly. We believe the progress we’ve made executing our strategic initiatives including increasing the penetration of our higher margin lines of business, positions us well to navigate the near-term and capitalize on our market opportunities when the economic backdrop improves.”
