Despite a decrease in third quarter revenues, Hamilton Beach reported gains in net income and operating profit for the period ended September 30.
Total revenue was $157.3 million, down from revenue of $163.3 million in the comparable quarter the previous year. Net income was $9.5 million, up from $6.4 million from a year ago. Operating profit was $14.4 million, compared with $11.6 million in the third quarter of 2015.
According to the company, revenues decreased in the third quarter primarily due to reduced sales volumes in the U.S. specialty housewares market and in the Canadian consumer retail market. The increases in net income and operating profit were primarily due to an improvement in gross profit as a result of reduced product costs and a shift in sales mix to higher-priced and higher-margin appliances.
Its sister company, Kitchen Collection, reported a net loss of $0.7 million and revenues of $32.9 million for the third quarter of 2016 compared with net loss of $0.6 million and revenues of $34.7 million for the third quarter of 2015.
The decrease in revenues was primarily the result of sales lost from closing 14 unprofitable stores since 2015, and a decline in comparable store sales, company officials said. 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.
As of the end of the third quarter, Kitchen Collection operated 221 stores.