Hamilton Beach Brands Holding Company, citing continuing strong demand for retail and commercial small appliances despite supply chain challenges, reported a 41% year-over-year third quarter sales increase.
Hamilton Beach Brands Holding Company, citing continuing strong demand for retail and commercial small appliances despite supply chain challenges, reported a 41% year-over-year third-quarter sales increase. The company registered $156.7 million in revenue during the quarter for an operating profit of $7.4 million, compared to an operating loss of 2.4 million for the same quarter in 2020.
In announcing results, Hamilton Beach said global supply chain disruption might affect its ability to fully satisfy demand at least through the first half of 2022 Hamilton Beach attributed lower U.S consumer revenue in the third quarter of 2020 to reduced shipping capabilities during the implementation of a new enterprise resource planning system, which shifted revenue into the fourth quarter of 2020.
E-commerce accounted for 31% of the company’s sales in the third quarter of 2021, Hamilton Beach reported, noting premium products sales gained by 35% versus the year-earlier period. The company said it has implemented mitigation strategies, including previously announced price increases, to help offset the impact on gross margin of higher transportation costs associated with the supply chain congestion and higher warehouse labor costs.
The company said it incurred $1.6 million in incremental expenses during the recent quarter related to relocating its U.S distribution center to a newly built facility. Net income from continuing operations in the quarter was $5.7 million, compared to net loss from continuing operations of $2.0 million in the year-earlier period. Hamilton Beach reported it expects demand for its retail and commercial products to remain strong in the fourth quarter and into 2022, citing strong retail placements and promotions that have been secured holiday selling season. The company said it remains focused on importing all the inventory possible to meet the strong demand but may not be able to source all the product needed due to ongoing constraints across the entire supply chain.
Hamilton Beach said it expects to adjust prices accordingly, while also remaining competitive with retail customers and consumers, adding it may not be able to cover all future cost increases with additional pricing initiatives. The company plans to support e-commerce growth with new digital marketing programs, expansion of its direct-to-consumer distribution operation, and increased participation with pure-play and omnichannel customers. Hamilton Beach also noted the growing contribution to sales from a new line of air purifiers licensed under the Clorox brand.
