Third quarter sales at Hamilton Beach were up 21% driven in part by results from Weston Brands, which was acquired in December of 2014.
Total sales for the three-month period ending Sept. 30 were $163.3 million, up from sales of $135.2 million in the comparable quarter the previous year. Operating profit increased was $11.6 million, up from operating profit of $9.5 million the prior year.
Excluding the impact of the Weston Brands acquisition, revenues increased approximately 14%, or $18.6 million, in the third quarter of 2015 compared with the third quarter of 2014.
Revenue was up primarily due to an increase in sales volume in the U.S. consumer market, partially offset by unfavorable foreign currency movements of both the Canadian dollar and Mexican peso, which weakened against the U.S. dollar.
Hamilton Beach said it expects to expand its FlexBrew coffee maker and Hamilton Beach Breakfast Sandwich Maker lines by offering products with a broader range of features. In addition, the company also said it expects to gain market positions for Hamilton Beach’s new Jamba-branded and Wolf Gourmet-branded products, both of which entered the market in the first half of 2015, are expected to expand and gain market position during the fourth quarter of 2015 and in 2016.
Third quarter sales at Kitchen Collection, which like Hamilton Beach is owned by NACCO Industries, were $34.7 million, down from sales of $37.5 million in the prior year’s third quarter. The housewares specialty retailer reported a loss of $843,000, an improvement from the prior year’s loss of $1.1 million.
According to the company, the decline in Kitchen Collection’s revenues was primarily the result of the strategic decision to close unprofitable stores since September 30, 2014. The reduced net loss was mainly the result of the closure of unprofitable stores combined with improved results at the Kitchen Collection comparable stores.