First quarter revenue at NACCO Industries was up driven in large part by sales growth at Hamilton Beach that offset a drop in sales at Kitchen Collection.
Company-wide revenue for the period ending March 31 was $193.7 million, up from sales of $117.4 million for the comparable quarter the previous year. Quarterly sales at Hamilton Beach were $123.3 million, up from sales of $101.3 million in 2014. Revenue at Kitchen Collection was $29.6 million, down from revenue of $36.9 million.
Net income for Hamilton Beach was $0.6 million while Kitchen Collection’s net loss was $1.9 million.
First quarter 2015 financial results at Hamilton Beach included $3.9 million of revenues and an operating loss of $0.8 million from Weston Brands, which Hamilton Beach acquired in December 2014. Excluding the impact of the Weston Brands acquisition, revenues increased approximately 18%, or $18 million, in the first quarter of 2015 compared with the first quarter of 2014, and operating profit increased $2.1 million between the same two periods.
At Kitchen Collection, the company said the decline in revenue was primarily the result of the loss of sales from the closure of unprofitable Le Gourmet Chef and Kitchen Collection stores since March 31, 2014, partially offset by sales at new Kitchen Collection locations.
Kitchen Collection’s reduced net loss was primarily the result of the closure of unprofitable stores and improved operating margins at Kitchen Collection comparable stores due to fewer promotional sales and lower mark-downs, a shift in mix to higher-margin products and a reduction in store expenses.
At the end of 2014, the company operated 237 Kitchen Collection locations and 11 Le Gourmet Chef stores.