What does Hamilton Beach do and what are its main business segments?

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What were the key takeaways from Hamilton Beach's earnings call?

What were the key takeaways from Hamilton Beach’s earnings call?

What is Hamilton Beach's latest dividend and current dividend yield?

What guidance did Hamilton Beach's management provide for the next earnings period?

What is Hamilton Beach's gross profit margin?

What is the revenue and EPS growth rate for Hamilton Beach year over year?

- **Revenue decline stabilized**: Q3 revenue down 15.2% YoY but improved sequentially from Q2.
- **Tariff impact resolved**: $5 million one-time cost fully expensed in Q3.
- **Health division breakthrough**: First positive operating profit with 50% subscription growth.
- **Digital sales momentum**: Q3 digital growth exceeds expectations.
- **Gross margin recovery**: Normalized going forward with diversified sourcing.


**【CEO Summary Section】**
- Q3 revenue decreased 15.2% YoY to $132.8 million, driven by higher tariffs and delayed retailer orders.
- Gross margin impacted by $5 million one-time 125% China tariff costs, but normalized going forward.
- Health division achieved first-time positive operating profit, with 50% subscription growth.
- Commercial business outperformed with new product launches and partnerships.
- Digital initiatives drove Q3 sales growth, with focus on Q4 holiday promotions.

**【CFO Financial Commentary】**
- GAAP net income $1.7 million ($0.12 EPS) vs. $1.9 million ($0.14 EPS) last year.
- Gross profit $28 million (21.1% margin) vs. $43.9 million (28% margin) last year.
- Operating expenses reduced 24% to $25.1 million due to cost control and restructuring.
- Free cash flow negative $14.6 million due to higher accounts payable and inventory turnover.
- Share repurchases and dividends totaled $2.2 million.

**【Q&A Highlights】**
- Tariff costs fully flowed through Q3 P&L, with no ongoing impact.
- Key retailer resumed normal ordering patterns post-inventory review.
- Health division partnerships expanding with top 15 pharmacies.
- Q4 expects sequential improvement in gross margins.
- Tariff diversification strategy reducing China dependency.
- Digital sales growth outpacing expectations.


Hamilton Beach Brands Holding Company (HBB) Q3 2025 Earnings Call Transcript

- **Revenue decline driven by tariffs**: Q2 sales down 18% YoY due to U.S.-China trade tensions.
- **Gross margin resilience**: +160bps to 27.5% from higher-margin commercial/health sales.
- **Strategic actions**: 
  - $10M annualized cost savings from 8% workforce reduction.
  - $5M+ marketing for new Lotus brand launch (7 products Q2, broader distribution Q4).
  - Health business patient subscriptions +50% YTD, targeting 2025 profitability.
- **Financial flexibility**: $38.7M net debt vs $12.8M YoY, cash flow constrained by $50M inventory buildup.
- **Growth opportunities**: 
  - Premium segment (Lotus) targeting 50% of U.S. consumer business.
  - Commercial partnerships (Sunkist) expected to double 2025 contribution in 2026.
  - Health business patient subscriptions +50% YTD, tracking to 2025 goal.

**【CEO Opening Remarks】**
- Q2 marked by U.S. tariffs on Chinese imports (145% increase), causing retailer purchasing pause and 18% YoY revenue decline.
- Strategic actions: 
  - Manufacturing diversification to APAC countries to reduce tariff exposure.
  - June pricing adjustments (+8-10%) accepted by retailers, maintaining market position.
  - 8% workforce reduction ($10M annualized savings) and $5M+ marketing support for new Lotus brand.
- Gross margin improved 160bps to 27.5% due to higher-margin commercial/health sales mix.
- Lotus brand launch (7 products) in Q2, with broader distribution in Q4 and mid-2026 Signature line.
- Health business patient subscriptions up 50% YTD, targeting 50% growth by year-end.

**【CFO Financial Commentary】**
- Q2 revenue: $127.8M (-18.2% YoY), driven by U.S. consumer volume decline.
- Gross profit: $35.1M (-13.3% YoY), but margin +160bps to 27.5% due to mix shift.
- SG&A: $29.1M (-4.3% YoY) due to incentive adjustments, offset by $0.8M severance charge.
- Operating profit: $5.9M (4.7% of rev vs 6.4% YoY), net income $4.5M ($0.33 EPS).
- Cash flow: -$23.8M (vs +$37.1M YoY) due to $50.8M inventory/A/P timing impact.
- Share buybacks: 215K shares ($4M) in Q2, dividend payments $1.6M.
- Net debt: $38.7M (vs $12.8M YoY) due to inventory buildup.

**【Q&A Highlights】**
1. **HealthBeacon Performance**: 
   - Q2 sales $1.7M (vs $0.86M YoY), operating loss $0.86M (vs $2M YoY), on track for 2025 profitability.
2. **Buyback Strategy**: 
   - Anti-dilutive: 300K shares/year to offset grants.
   - Opportunistic: repurchase when undervalued, liquidity-dependent.
3. **Cost Savings**: 
   - $10M annualized savings ($800K Q2 charge), primarily from retail segment headcount reduction.
4. **Pricing Trends**: 
   - 2023-2024: -4.5% to -5% pricing to pass through freight costs.
   - 2025: +8-10% adjustments to offset tariffs, competitive with peers.
5. **Long-Term Growth**: 
   - Premium segment (Lotus) targeting 50% of U.S. consumer business.
   - Commercial partnerships (Sunkist) expected to double 2025 contribution in 2026.
   - Health business patient subscriptions +50% YTD, tracking to 2025 goal.


Hamilton Beach Brands Holding Company (HBB) Q2 2025 Earnings Call Transcript

- **Revenue Growth**: 4% YoY to $133.4M, driven by North America and premium products
- **Margin Expansion**: 120bps gross margin improvement to 24.6%
- **Tariff Mitigation**: 15% U.S. sales shifted out of China (target 67% by end-2025)
- **Healthcare Growth**: HealthBeacon patient subscriptions up 3Qs in a row
- **2026 Outlook**: Margin benefits expected from sourcing diversification
- **Q2 Challenges**: April sales slowed amid macro uncertainty

**【CEO Opening Remarks】**
- Q1 2025 revenue increased 4% YoY to $133.4M, driven by North American consumer demand and higher-margin premium/healthcare products.
- Gross margin expanded 120bps to 24.6% (vs. 23.4% in Q1 2024), fueled by HealthBeacon integration and product mix improvements.
- Operating profit improved $3.2M to $2.3M, benefiting from lower operating expenses and tariff mitigation strategies.
- Key initiatives: 
  - 15% of U.S. sales shifted out of China (target 67% by end-2025)
  - New Lotus premium brand launching 7 products in H2 2025
  - 20%+ e-commerce growth in Q1
  - HealthBeacon patient subscriptions up 3Qs in a row
- Q2 outlook: Tariff-related price increases implemented, but April sales trends slowed amid macro uncertainty.

**【CFO Financial Highlights】**
- GAAP net income: $1.8M ($0.13 EPS) vs. -$1.2M (-$0.08 EPS) in Q1 2024
- Cash flow: $6.6M from operations vs. $19.7M in Q1 2024 (driven by inventory buildup)
- Share buybacks: $2.7M in Q1 (141k shares) + $1.6M in dividends
- Net debt reduced to $1.7M (vs. $23.7M in Q1 2024)
- FY 2025 guidance suspended due to tariff uncertainty, but expect margin benefits from diversification in 2026

**【Q&A Key Takeaways】**
1. Tariff Impact:
 - 2026 margin benefits from non-China sourcing (target 67% of U.S. sales)
 - Retail partners supportive of price adjustments given industry-wide challenges
2. Supply Chain:
 - $32M inventory pulled forward pre-tariffs in Q1
 - 5-8 weeks of inventory buffer with retailers
3. HealthBeacon:
 - $1.5M Q1 revenue, 3Qs of consecutive patient subscription growth
 - New Optum Health partnership launching Q2
4. Financial Reporting:
 - Share repurchases split between Board-approved program and tax withholdings

Hamilton Beach Brands Holding (HBB)-30 Apr 25-2025 Q1 Earnings call transcript

- **Revenue Growth**: Q4 2024 revenue up 3.3% YoY to $213.5M, with full-year growth of 4.6% to $654.7M.
- **Margin Expansion**: Gross margin improved 300bps to 26% in 2024, driven by cost control and new products.
- **Health Care Expansion**: Acquired HealthBeacon, adding 32,000 patient subscriptions and partnerships with Optum Health.
- **Tariff Mitigation**: 35% of products now tariff-free, targeting 75% by 2025.
- **Cash Flow Strength**: $65.4M operating cash flow in 2024, enabling a net cash position and $20.4M returned to shareholders.

**【CEO Summary Section】**
- **Q4 2024 Performance**: Revenue grew 3.3% YoY to $213.5M, driven by strong U.S. consumer sales and new product launches. Gross margins remained above 26% despite promotional activity, reflecting operational efficiency.
- **Full Year 2024 Highlights**: 
  - Revenue increased 4.6% to $654.7M, with mid-single-digit growth in core and premium segments.
  - Gross margins expanded 300bps to 26%, up from 23% in 2023.
  - Operating profit rose 23% to $43.2M, fueled by cost control and $65.4M in operating cash flow.
- **Strategic Initiatives**: 
  - **Health Expansion**: Acquired HealthBeacon in Feb 2024, adding 32,000 patient subscriptions and partnerships with Optum Health.
  - **Tariff Mitigation**: 35% of products now tariff-free, with plans to expand to 75% by 2025 through price increases and supplier concessions.
  - **New Products**: FlexBrew coffee maker, CHI VIBES steamer, and Clorox air purifier drove category growth.
- **2025 Outlook**: Target mid-single-digit revenue growth, with operating profit expansion driven by $14.1M in share buybacks and $6.3M in dividends.

**【CFO Financial Commentary】**
- **Q4 2024 Financials**: 
  - Net income: $24M ($1.75/diluted share) vs. $19.6M ($1.40) in 2023.
  - Gross margin: 26.1% (down 70bps YoY due to price reductions).
  - Operating expenses: $32.1M (+6.3% YoY) driven by HealthBeacon integration.
- **2024 Full Year**: 
  - Record gross margin of 26% (vs. 23% in 2023).
  - Operating cash flow: $65.4M, enabling a net cash position of $600K vs. $34.6M net debt in 2023.
  - Share repurchases: 668,785 shares ($14.1M) and dividends ($6.3M), returning 65% of net income to shareholders.
- **2025 Guidance**: 
  - Revenue growth approaching mid-single digits.
  - Gross margins to remain near 2024 levels.
  - Operating profit growth > revenue due to expense leverage and reduced HealthBeacon SG&A.
  - Cash flow: $40-50M from operations and investing activities.
  - Debt: $50M with leverage ratio of 1.21, down from 1.69 in 2023.

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