Hamilton Beach Brands grew its sales in the fourth quarter, and the company said it progressed with building sales growth in the e-commerce channel and its premium appliances category.
In the fourth quarter, revenue grew 4.1% to $207.1 million compared to $199 million, as a result of increased U.S. consumer and international consumer sales, partially offset by a modest decrease in global commercial sales. Continued progress with the company’s strategic growth initiatives led to a significant increase in e-commerce sales and sales of the company’s premium products also grew.
U.S. small kitchen appliance industry market sales grew in low single digits, while the mass segment, in which the Hamilton Beach and Proctor Silex brands compete, declined moderately, and the smaller premium segment increased.
The company noted that its revenue growth was not as robust as expected due to the ongoing adverse impact of tariffs. Growth was further dampened by the compressed holiday selling season that resulted from a late Thanksgiving. Despite strong pre-season retailer promotions, the late holiday ultimately delayed industry and company peak sales by several weeks with the result that retailer reorders anticipated by the company did not materialize. The shortened season also reduced store traffic for many retailers, resulting in softer-than-expected sales, the company said.
Fourth quarter net income from continuing operations increased 53.2% to $19.4 million, or $1.43 per diluted share, compared to $12.7 million, or $0.93 per diluted share.
For the full fiscal year, revenue decreased 2.7% to $612.8 million compared to $629.7 million, due to lower volume across all markets. Continued progress with the company’s strategic growth initiatives helped increase global e-commerce sales by 27% and sales of the company’s premium products grew 7.4%.
Net income from continuing operations in the fiscal year was $25.1 million, or $1.83 per diluted share, compared to $27.1 million, or $1.98 per diluted share.