Hamilton Beach Brands Holding Co (HBB) SEC Filings & Earnings Calls

One-time tariff refunds are non-recurring; gross margin excluding benefits was only 26.1%.

“These benefits are non-recurring and will not persist beyond the sell-through of the affected inventory. Excluding these benefits, gross profit margin would have been 26.1%.” · word for word

Operating profit guidance still expects decline high-single digits on a percentage basis.

“Operating profit is now expected to decline high-single digits on a percentage basis compared to the previous estimate of low-teens” · word for word

Non-recurring tariff benefits

“These benefits are non-recurring and will not persist beyond the sell-through of the affected inventory. Excluding these benefits, gross profit margin would have been 26.1%.” · word for word

Volume and mix pressure in U.S. Consumer business

“Revenue increased $3.5 million, or 1.3%, compared to the prior year as pricing offset volume and mix pressure in the U.S. Consumer business” · word for word

Loss of key legal executive

“Departure of SVP, General Counsel and Secretary.”

One-time tariff benefit is non-recurring; margin tailwind will fade after inventory sell-through.

“This benefit is non-recurring and will not persist beyond the sell-through of the affected inventory.” · word for word

Consumer sentiment downturn and macroeconomic uncertainty pressuring revenue.

“Revenue decline was primarily driven by lower volumes in the Company's U.S. Consumer business due to lower consumer sentiment and overall macroeconomic uncertainty.” · word for word

Accelerated depreciation of legacy ERP system adding $6M in costs in 2026.

“approximately $6 million in accelerated depreciation associated with the Company's legacy ERP system” · word for word

Non-recurring margin benefit

“The margin improvement included a one-time benefit of 190 basis points related to the sell-through of inventory that was priced in anticipation of IEEPA tariffs that were eliminated following the Supreme Court’s ruling. This benefit is non-recurring and will not persist beyond the sell-through of the affected inventory.” · word for word

Demand weakness in U.S. Consumer

“Revenue decreased $11.4 million, or 8.6%, compared to the prior year due to lower volumes in the Company’s U.S. Consumer business.” · word for word

Controlled company governance risk

“Our Board has determined that, based primarily on the ownership of Class A Common and Class B Common by the members of the Rankin family, we may qualify as a 'controlled company'... The combined beneficial ownership of all our directors and all of our executive officers... equals 75.70% of the combined voting power.” · word for word

Concentrated ownership risk

“Alfred M. Rankin, Jr., et al. beneficially own 93.74% of Class B Common, representing 73.32% of combined voting power.”

Tariff exposure

“In 2025, the U.S. government announced substantial new tariffs on many countries, including reciprocal tariffs targeting countries with which the United States has significant trade deficits. As a result, many of our product lines are subject to multiple tariffs imposed by the U.S. government on imports from China and other Asia-Pacific countries.” · word for word

Customer concentration

“Walmart Inc. and its global subsidiaries (“Walmart”) accounted for approximately 29%, 29% and 27% of our revenue in 2025, 2024 and 2023, respectively. Amazon.com, Inc. and its subsidiaries (“Amazon.com”) accounted for approximately 19%, 24% and 24% of our revenue in 2025, 2024 and 2023, respectively.” · word for word

Supply chain concentration in China

“Our suppliers are primarily located in the Asia-Pacific region, with approximately two-thirds of our suppliers currently based in China.” · word for word

Consumer spending sensitivity

“Weakness in consumer confidence and poor financial performance by mass merchandisers, ecommerce retailers, warehouse clubs, department stores or any of our other customers could result in reduced revenue and profitability.” · word for word

Cybersecurity risk

“While we are not aware of any cybersecurity incidents that have occurred since the beginning of 2025 that have materially affected, or are reasonably likely to materially affect us, including our results of operations or financial condition, any one or more future cybersecurity incidents could have a material adverse effect on our financial condition or resu” · word for word

Tariff exposure: one-time $5.3M cost from 125% tariff on China imports; ongoing trade policy uncertainty.

“temporary spike in tariff rates on imports from China to 125% ... tariff-related disruptions”

Consumer demand volatility: retailers paused buying in H1 2025; recovery uncertain.

“retailers paused buying in order to assess inventory levels and price increases flowing from the new tariffs” · word for word

ERP system write-off: $1.6M charge for legacy system; transition risk.

“write off and accelerated depreciation of the company’s legacy enterprise resource planning (ERP) system” · word for word

Tariff exposure on China-sourced goods

“The Section 301 tariffs on goods covered by lists 1, 2, 3 and 4a affect approximately 10% of our total purchases on an annualized basis.” · word for word

Inventory build ahead of tariffs may pressure future cash flow

“Net inventory and accounts payable represented a use of cash of $18.6 million in 2025, up from $12.7 million in the prior year, driven by a material level of inventory pulled forward in the current period ahead of uncertainty related to tariff impacts.” · word for word

Tariff exposure: temporary 125% tariff on Chinese imports caused $5M one-time cost and disrupted retailer ordering patterns; uncertainty remains despite recent moderation.

“Most of these costs were from a temporary spike in tariff rates on imports from China to 125%.” · word for word

Customer concentration: delay in orders from one large retailer significantly impacted Q3 revenue; reliance on key accounts poses risk.

“The revenue decline was primarily driven by lower volumes in the Company’s U.S. Consumer business, including a delay in orders from one large retailer for most of the third quarter.” · word for word

No guidance provided due to tariff uncertainty, reducing visibility for investors.

“As a result of the increased uncertainty caused by higher tariffs recently imposed by the United States, particularly in China, the Company believes it is prudent to maintain its recently implemented practice of not providing specific guidance on its business outlook.” · word for word

Tariff cost pressure on margins

“Most of these costs were from a temporary spike in tariff rates on imports from China to 125%.” · word for word

Customer concentration and order delays

“delay in orders from one large retailer for most of the third quarter as they assessed inventory levels and pricing in response to the tariffs” · word for word

Negative operating cash flow

“Net cash used for operating activities was $14.6 million, compared to cash provided of $35.2 million in the prior year” · word for word