Gross Profit Margin Expansion
Despite a challenging environment, gross profit margin increased by 160 basis points to 27.5% compared to the previous year's 25.9%, driven by a favorable customer mix including higher-margin commercial and health businesses.
Successful Diversification and Cost Management
The company accelerated its manufacturing diversification away from China, achieving $10 million in annualized cost savings and implementing foreign trade zone operations and strategic inventory prebuilds to minimize tariff exposure.
Launch of the Lotus Brand
Hamilton Beach launched the Lotus brand, which includes high-end kitchen appliances. The launch is supported by over $5 million in marketing over the next 18 months.
Growth in Health Business
The Health business saw revenues double from $0.86 million to $1.7 million year-over-year, with a significant improvement in operating losses, setting a path to profitability by year-end.