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Shares of Hamilton Beach Brands Holding Company HBB have declined 23.2% since reporting results for the first quarter of 2025. This compares with the S&P 500 index’s 0.63% growth over the same time frame. Over the past month, the stock has declined 16.3% against the S&P 500’s 3.4% rally.
Earnings Rebound on Higher Margins & Improved Volume
In the first quarter ended March 31, 2025, Hamilton Beach reported revenues of $133.4 million, up 4% from $128.3 million in the same period last year. Gross profit rose 9% to $32.8 million, with the gross margin expanding 120 basis points to 24.6% from 23.4% a year earlier. Net income stood at $1.8 million, or 13 cents per diluted share, against a net loss of $1.2 million, or 8 cents per diluted share, a year ago.
Hamilton Beach Brands Holding Company Price, Consensus and EPS Surprise
Hamilton Beach Brands Holding Company price-consensus-eps-surprise-chart | Hamilton Beach Brands Holding Company Quote
Operating Highlights & Key Business Metrics
Operating profit reached $2.3 million, marking a $3.2-million improvement over the prior year’s $0.9-million operating loss. SG&A expenses declined slightly to $30.4 million due to the absence of prior-year transaction costs related to the HealthBeacon acquisition.
Cash flow from operations was $6.6 million, down from $19.7 million a year ago. The decline stemmed from higher inventory levels due to tariff-related pull-forward activity and a tough comparison to prior-year improvements in receivables collections.
Strength in Core Segments & Strategic Expansion
Hamilton Beach’s first-quarter gains were driven by its North America consumer business, particularly in the United States, supported by positive at-home dining trends. The Premium and Health segments also contributed to gross margin expansion. HealthBeacon, acquired in early 2024, generated $1.5 million in revenues and operated at higher margins, boosting consolidated profitability. Notably, HealthBeacon achieved its third consecutive quarter of rising patient subscriptions, positioning the segment for above 50% growth in 2025, supported by an upcoming partnership with OptumHealth.
Premium segment brands like Numilk and CHI saw strong consumer demand, especially through product launches and partnerships with major retailers. The company plans to strengthen its premium offering with the launch of Lotus, a new brand targeting high-end home cooks, with seven products slated for release later in the year.
E-commerce accounted for roughly 40% of U.S. consumer sales and grew in the mid-single digits, supported by performance across digital platforms and retail partner sites. International revenues were slightly down due to weakness in select global markets.