NEW YORK— The shift in focus on higher-priced kitchen electrics was a key factor in Hamilton Beach’s growth in sales and net income for
the fourth quarter.
For the period ended December 31, 2016, total revenue was $205.1 million, up from revenue of $204.9 in the fourth quarter of 2015. Net income was $14.4 million, an increase of $3.3 million over the comparable quarter the prior year.
Company officials said the positive sales gains the small electrics supplier had in the quarter was offset by lower product volumes in the U.S. consumer and commercial markets along with unfavorable currency movements.
Revenue for fiscal 2016 was $605.2 million, down from revenue of $621 million in the prior fiscal year. Net income for fiscal 2016 was $26.6 million, a gain of $6.9 million over the prior year.
Christina Kmetko, investor relations consultant with NACCO, the parent company of Hamilton Beach, said during a recent conference call that the small electrics supplier expects its 2017 retail sales to be comparable to 2016, but is forecasting growth in international and commercial markets.
“As a result of this market environment and with a number of new products in pipeline, we expect Hamilton Beach’s sales volumes and revenues to increase modestly in 2017 when compared to 2016,” she said.
Kmetko added, “This increase is expected to be slightly more due to enhanced distribution and increased higher margin product placements resulting from execution of the company’s strategic initiatives domestically and internationally.”
During the past year, Hamilton Beach has focused its new product debuts on several upscale appliances including the Professional series sold under the Hamilton Beach brand, and a selection of small electrics and other housewares items under the Weston and Wolf Gourmet brands.
Kmetko added that the company expects to continue seeing a shift in sales from in-store channels to e-commerce outlets.
