Hamilton Beach Q2 Sales Down, Net Income Rises

Second quarter sales at Hamilton Beach were down slightly as the company pinned the decline on reduced sales in the U.S. market and currency fluctuation.

For the quarter ended June 30, Hamilton Beach sales were $127.1 million, down from sales of $129.5 million in the same quarter the previous year. Net income was $2.9 million, up from net income of $1.6 million in the second quarter of 2015.

Company officials said the increase in net income was attributed to a shift in sales mix to higher-priced, higher-margin products and lower selling, general and administrative expenses.

Hamilton Beach’s sister company, Kitchen Collection, reported second quarter revenue of $28.6 million, down from $29.8 million in the second quarter of 2015. Net loss for the quarter was $2 million as compared to a net loss of $1.8 million in the second quarter of 2015.

Company officials said the revenue decrease was primarily the result of sales lost from closing 15 unprofitable stores since June 30, 2015, and a decline in comparable store sales. The decrease in comparable store sales was mainly attributable to fewer customer visits and a decline in the number of store transactions, partially offset by improvements in the average sales transaction value. Sales at newly opened Kitchen Collection stores also partially offset the revenue decrease.

Kitchen Collection operates 225 stores, four fewer than the store count at the end of 2015.