First quarter revenue at Hamilton Beach Brands Holdings was down slightly as the company reported a larger net loss for the three month period ended March 31.
Consolidated revenue for the quarter was $145.4 million compared to $146.6 million for the first quarter of 2018. The company’s Hamilton Beach Brands division had revenue was $126.7 million compared to $125.4 million in the first quarter of 2018. Kitchen Collection revenue for the first quarter was $19.3 million compared to $22.1 million in the first quarter of 2018.
Consolidated net loss was $1.8 million, or $0.13 per diluted share, compared to a consolidated net loss of $0.4 million, or $0.03 per diluted share, for the first quarter of 2018.
In the Hamilton Beach Brands division, operating profit was $1.6 million compared to $3.8 million for the first quarter of 2018. At Kitchen Collection, the operating loss of $3.7 million improved by $0.6 million compared to the operating loss of $4.3 million for the first quarter of 2018.
In the Hamilton Beach Brands division, company officials said progress continues to be made in its effort to drive growth in new areas, including “Only the Best” expansion, global e-commerce leadership and new category growth.
Sales from brands offering products labeled by the company as “Only the Best” continue to grow. This includes brands such as Weston, Hamilton Beach Professional, Wolf Gourmet and Chi.
In the Kitchen Collection division, company officials said the decrease in revenue was largely from the closure of underperforming stores and lower comparable store sales.
As of March 31, Kitchen Collection operated 168 stores compared to 199 stores on March 31, 2018.
Company officials said Kitchen Collection continues to make progress with its initiatives to return to profitability by moving all stores to a one-year lease term, closing underperforming stores, maintaining gross margins, reducing expenses and managing working capital.
Kitchen Collection closed 21 stores in the first quarter of 2019 and plans to close an additional 10 stores by the end of the year, with a majority of the closures occurring in the second quarter.