First quarter consolidated revenue for the Hamilton Beach Brands Holding Company was up 4.5% as strong sales growth in the company’s Hamilton Beach Brand segment offset steep declines in its Kitchen Collection retail side.
For the three months ended March 31, consolidated revenues were $146.6 million, up from revenue of $140.3 million in the comparable quarter the previous year. Consolidated net loss for the first quarter of 2018 was $0.4 million, or $0.03 per share, compared with consolidated revenues of $140.3 million and a consolidated net loss of $1.4 million, or $0.10 per share, for the first quarter of 2017.
The Hamilton Beach Brands division reported net income of $2.8 million on revenues of $125.4 million for the first quarter of 2018 compared with net income of $0.7 million on revenues of $114.2 million for the first quarter of 2017. Operating profit increased to $4 million in the first quarter of 2018 from $0.8 million in the first quarter of 2017.
Company officials said the revenue increase was the result of an increase in sales of higher-priced products and fluctuations in the currency markets.
Kitchen Collection reported a net loss of $3.6 million and revenues of $22.1 million for the first quarter of 2018 compared with a net loss of $2.1 million and revenues of $26.7 million for the first quarter of 2017. The decreases in revenues and operating results were primarily due to lower comparable store sales from reduced customer traffic and a shift to lower-priced products, which resulted in a decline in the number of store transactions and a decrease in the average sales transaction value, company officials said.
During the first quarter, Kitchen Collection closed 11 stores and company officials said further closings could occur in the months ahead if the retailer is unable to reach acceptable terms with its landlords as leases come up for renewal.