First quarter revenue for Hamilton Beach, a division of NACCO Industries, was down as the company pinned the decrease on reduced sales volume in the U.S. retail marketplace along with a reduction in commercial sales.
For the three months ended March 31, total revenue was $115.7 million, down from revenue of $123.3 million in the comparable quarter the previous year. Net loss for the quarter was $0.3 million, down from net income of $0.6 million in the first quarter of 2015.
According to the company, the reduced sales volume in the U.S. consumer retail market was in part driven by an unexpected decline in retail demand early in the first quarter as retailers re-balanced their inventory at the end of the holiday-selling season.
The decline in operating profit and net income was primarily due to a reduction in gross profit as a result of a shift in sales mix to lower-priced, lower-margin products and reduced sales volumes, the company said.
First quarter revenue at Kitchen Collection, a sister company of Hamilton Beach, was $28.4 million, down from revenue of $30 million in the comparable quarter the previous year. The kitchenware retailer also reported a quarterly net loss of $1.9 million, a figure that equals the net loss reported in the same quarter in 2015.
The decline in revenues was primarily the result of sales lost from closing 15 unprofitable stores since March 31, 2015, and a decrease in comparable store sales, partially offset by sales from 14 newly opened stores, the company said. Kitchen Collection operates 222 stores.