In the U.S. consumer market, appliance demand surged during the second quarter as consumers continued to stay home and cook more during the pandemic, Hamilton Beach noted.
Total revenue in the second quarter increased 5.5% to $138.3 million compared to $131.1 million in the previous second quarter. The U.S. consumer market continued to drive the company’s overall results as at-home consumers engaged in more meal and beverage preparation during the COVID-19 pandemic. The Canada consumer market also experienced increased demand. Revenue in the international consumer and global commercial markets decreased due to the ongoing adverse impact of the COVID-19 pandemic on emerging markets and on the restaurant and hotel industries.
Consolidated net income in the second quarter was $7.8 million, or $0.57 per diluted share, compared to a net loss of $0.6 million, or $0.04 per diluted share in the previous second quarter. Net income from continuing operations was $8.1 million, or $0.59 per diluted share, compared to $1.9 million, or $0.14 per diluted share.
In the U.S. consumer market, demand grew as consumers continued to stay home and cook more during the coronavirus pandemic, the company noted. Unit growth of the Hamilton Beach brand outpaced the market, the company said, and added that the company’s Weston and Wolf Gourmet brands significantly outpaced the market. Demand continued to be particularly strong for the company’s countertop ovens, toasters, food processors, coffee makers, slow cookers, hand mixers, cocktail dispensers and breakfast appliances. Demand in the second quarter led to out-of-stock positions for certain product categories, which retailers are expected to replenish in the third quarter.
The company also continues to capitalize on its strengths in the e-commerce channel, including shipping an increased number of products through its fast growing direct-to-consumer distribution operation. E-commerce sales in the second quarter increased 77% and accounted for 37% of total revenue.