GLEN ALLEN, Va., July 30, 2025 /PRNewswire/ -- Hamilton Beach Brands Holding Company (NYSE: HBB) (The Company) today announced results for the second quarter of 2025. Second Quarter 2025 Overview "The second quarter presented challenges as significant trade disruptions from new tariff measures impacted the broader industry," said R. Scott Tidey, President and Chief Executive Officer. "Our team responded swiftly with strategic actions, including accelerating our manufacturing diversification, implementing se ...

Financial Data and Key Metrics Changes - Revenue increased by 3.2% to $358.9 million, with growth observed each month during the quarter and continuing into July [5][12] - Gross margin reached a record 37.1%, an increase of 190 basis points year-over-year and 20 basis points sequentially [5][14] - Operating income improved by 26.9% to $33.5 million, marking a quarterly record for the company [16] - Operating margin was reported at 9.3%, with strong cash flow generation of $31.8 million from continuing operations [5][17] Business Line Data and Key Metrics Changes - Performance was driven primarily by the largest strategic accounts, while smaller transactional customers saw a reduction [5][12] - U.S. revenue increased by 3%, while Canadian revenue improved by 7.4% in local currency [12] Market Data and Key Metrics Changes - Sales growth was broad-based, with significant momentum in strategic accounts, which saw growth in both total dollar and order volume [13][32] - The company noted a decline in total volume due to a strategic pullback from promotional activities targeting lower retention customer segments [13][42] Company Strategy and Development Direction - The company aims to broaden its customer base, deepen existing relationships, and enhance product offerings to improve customer stickiness [7][9] - Future growth strategy will focus on specialization and expansion, targeting key customers and aligning sales efforts accordingly [8][9] - The company plans to invest in growth initiatives and evaluate strategic mergers and acquisitions [10][50] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the fluid tariff environment and its significant cumulative impact, emphasizing ongoing monitoring and strategic cost negotiations [13][14] - The company expressed optimism about future growth opportunities and the potential to expand its total addressable market [10][47] Other Important Information - The company maintains a strong balance sheet with a current ratio of 2.1 to 1, $55.1 million in cash, and no debt [18] - A quarterly dividend of $0.26 per share was declared by the Board of Directors [19] Q&A Session Summary Question: Inquiry about gross margin increase - Management explained that the 200 basis points increase in gross margin was attributed to price timing and favorable transportation costs, with expectations of sequential headwinds in the third quarter [21][22][24] Question: Clarification on July sales trends - Management noted that growth in July was broad-based, particularly strong among strategic accounts, and that they were seeing positive momentum from targeted marketing efforts [30][32][34] Question: Intentionality in attracting new customers - Management clarified that being intentional means aligning the organization around customer needs and focusing on higher-value customer segments rather than price-sensitive ones [35][36] Question: Opportunities for growth and urgency - Management highlighted operational elements that would enable greater responsiveness to customer needs and emphasized the importance of real-time decision-making [43][44] Question: Addressable market opportunity - Management indicated that there is significant potential for expanding the total addressable market, particularly in industrial equipment and supplies [46][47] Question: Future acquisitions - Management expressed a willingness to pursue strategic acquisitions, emphasizing a cautious approach while validating growth opportunities [50][51]

Financial Data and Key Metrics Changes - The company generated $4.4 billion in revenue, with a gross profit of $752 million and a gross profit margin of 17.2% [11] - Adjusted operating margin was 5.8%, and adjusted earnings per share (EPS) was $7.43, with adjusted EBITDA at $256 million [12][19] - Adjusted net income for the quarter was $146 million, with a non-cash deferral headwind of $0.43 per share due to TCA [19][20] Business Line Data and Key Metrics Changes - Same store revenue for new vehicles increased by 9% year over year, with units up by 7% and average gross profit per vehicle at $3,611 [12][12] - Used vehicle unit volume decreased by 4% year over year, with retail gross profit per unit at $17,290, marking the fourth quarter of sequential growth [13][14] - Parts and service gross profit increased by 7%, with a gross profit margin of 59.2% and a fixed absorption rate over 100% [16][17] Market Data and Key Metrics Changes - The same store new day supply was 59 days at the end of June, while the used day supply of inventory was 37 days [12][14] - The company noted strong demand in the second quarter, although a decline was observed as the quarter progressed due to tariff impacts [8] Company Strategy and Development Direction - The company is focused on integrating the Herb Chambers acquisition and optimizing its portfolio by divesting nine stores, which generated proceeds of $250 million to $270 million [11][25] - The transition to Techeon is a key investment aimed at improving operational efficiency and guest experience, with full conversion expected by 2027 [10][60] - The company aims to reduce leverage over the next 12 to 18 months while remaining opportunistic with share repurchases [11][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing the resilience of the automotive retail business despite potential headwinds from tariffs and market conditions [81][82] - The company anticipates that the second half of the year will depend heavily on tariff decisions and their impact on consumer pricing [8][19] Other Important Information - The average age of passenger cars on the road is 14.5 years, indicating a strong potential for service growth in the parts and service business [18] - The company has a transaction-adjusted net leverage ratio of 2.46 times, which is expected to be above the target range following the Chambers acquisition [23][24] Q&A Session Summary Question: Can you walk through the cadence of GPU and units as the quarter progressed? - Management noted that GPUs started strong but adjusted as the quarter progressed, with expectations for GPUs to fall into the $2,500 to $3,000 range [27][30] Question: What initiatives are keeping SG&A under control? - The focus is on productivity per employee and maintaining discipline on headcount, with some costs related to Techeon conversion impacting the SG&A numbers [34][35] Question: What opportunities for improvement exist with the Herb Chambers acquisition? - Management highlighted the luxury mix and market presence of Herb Chambers, indicating potential for operational efficiencies and improved metrics [39][41] Question: How does the company plan to maintain parts and service growth amid tougher comparisons? - Management expressed confidence in maintaining mid-single-digit growth in parts and service, despite anticipated headwinds from warranty work [42][45] Question: What is the strategy regarding used GPUs and inventory? - The strategy remains focused on maximizing gross profit rather than volume, with continuous assessment of market conditions [54][56] Question: What are the implementation costs for Techeon? - Implementation costs for Techeon were approximately $2 million in the quarter, split between duplication and third-party audit costs [62]

Core Viewpoint - Stryker Corporation is expected to report strong second-quarter 2025 results, with earnings and revenue growth driven by robust product demand and new launches [1][9]. Q2 Estimates - The Zacks Consensus Estimate for earnings is $3.06 per share, reflecting an 8.9% year-over-year increase [2]. - Revenue is projected at $5.96 billion, indicating a 9.9% growth compared to the previous year [2]. Factors to Note - Stryker achieved 10.1% organic revenue growth in Q1 2025, supported by procedural momentum and successful new product launches [3]. - Full-year organic growth is anticipated to be between 8.5% and 9.5%, with Q2 performance expected to remain strong due to consistent capital demand and new product adoption [3]. Segment Performance - The Mako robotic-assisted surgery segment is expected to continue its momentum, particularly in hips and knees, with record installations noted in Q1 [4]. - Orthopaedics, especially hips and knees, are projected to maintain high-single-digit growth, while trauma and extremities are benefiting from strong demand for the Pangea plating system [4]. - The MedSurg and Neurotechnology segments are anticipated to sustain double-digit growth, driven by strong capital orders and demand for specific devices [5]. New Product Impact - Recent product launches, including Mako 4 and LIFEPAK 35, are likely to have significantly contributed to revenue momentum [6]. - Other new products, such as Artix, AlphaVent Knotless, and Oculan, are building sales pipelines with potential for growth in the latter half of 2025 [6]. Cost and Margin Insights - In Q1, Stryker's gross margin expanded by 190 basis points to 65.5%, and operating margin increased by 100 basis points to 22.9% [7]. - The company anticipates cost pressures in H2 2025 due to new tariffs on imported components, estimating a $200 million annual impact [7]. Earnings Outlook - Adjusted EPS is expected to remain strong in Q2, although growth may moderate slightly due to higher interest expenses and early tariff impacts [8]. - Full-year 2025 EPS is projected to be in the range of $13.20 to $13.45 [8]. Revenue Breakdown - Estimated sales for the MedSurg and Neurotechnology segments are $3.75 billion, while Orthopaedics & Spine segments are pegged at $2.57 billion [10]. - U.S. sales are estimated at $4.74 billion, with international sales at $1.59 billion [10].

Summary of Key Points from the Conference Call Industry Overview - The report discusses the impact of recent trade deals and tariff rates on the Asia Pacific region, particularly focusing on the effective tariff rates and their implications for economic growth and capital expenditure (capex) [1][7][8]. Core Insights and Arguments 1. **Effective Tariff Rates**: - The effective tariff rate for imports from Asia is projected to rise to 24% from 5% at the beginning of 2025, indicating a significant increase in trade costs for exporters [7][12][14]. - This rise in tariffs is expected to have a direct negative impact on exporters' sales and margins, as well as an indirect effect through a slowdown in capex [7][9][10]. 2. **Impact on Capital Expenditure**: - Initial signs of weakness in the Asia capex cycle have been observed, with June capital goods imports showing a notable month-on-month decline [7][9][39]. - The slowdown in capex is attributed to trade policy uncertainty and the anticipated effects of higher tariffs [39][10]. 3. **Trade Deal Dynamics**: - Four out of twelve Asian economies have reached trade agreements with the US, which has reduced uncertainty regarding tariff levels [8][12]. - However, many economies, including India, Korea, Malaysia, Taiwan, and Thailand, are still negotiating and have not secured comprehensive deals [10][12]. 4. **Sectoral and Regional Variations**: - Not all sectors and economies are equally affected by the tariff increases; for instance, US import prices from China, Korea, Taiwan, Hong Kong, and Singapore have fallen, while prices from ASEAN and Japan have risen [20][21]. - The complexity of trade agreements, particularly with China, remains a significant concern, as ongoing negotiations are expected to lead to further delays rather than comprehensive resolutions [10][11]. 5. **Future Outlook**: - The macroeconomic outlook for the second half of 2025 remains cautious due to the anticipated direct and indirect effects of higher tariffs [9][10]. - The report highlights that while current data does not show significant tariff impacts, future months may reveal price cuts or lower volumes for Asian exporters as the effects of tariffs materialize [33][34]. Additional Important Considerations 1. **Transshipment Issues**: - The report notes that transshipment and the level of domestic content in exports will continue to be contentious issues, potentially leading to further trade tensions [11][10]. 2. **Foreign Value-Added Content**: - Restricting foreign value-added content in exports to below 40% poses challenges for many Asian economies, particularly those with high import content from China [44][45]. - Vietnam and the Philippines have the highest shares of Chinese value-added content in their exports, which could complicate compliance with potential US trade restrictions [47][49]. 3. **Inflationary Effects**: - The full inflationary effects of tariffs have yet to be fully realized, with expectations of price hikes looming over the summer months [10][11]. 4. **Currency Impact**: - The depreciation of the broad trade-weighted dollar by 7.3% since January has effectively increased US tariff rates by 31%, complicating the trade landscape further [13][14]. This summary encapsulates the critical insights and implications of the recent trade dynamics affecting the Asia Pacific region, highlighting the challenges and uncertainties that lie ahead for economies and sectors involved.

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the **transportation industry**, specifically the impact of tariffs on freight flows from **China to the USA** [1][2][3]. Core Observations - **Laden vessels from China to the USA** decreased by **8% week-over-week**, marking the fourth consecutive week of decline after a surge in inbound shipments [1][5]. - Year-over-year (YoY), laden vessels showed a **3% drop** [5]. - **Port of Los Angeles** is expected to see a **22% increase** in sequential imports, followed by a **17% decrease** two weeks later, indicating volatility in shipping patterns [5][40]. - **Rail intermodal volumes** on the West Coast increased by **5% YoY**, suggesting a recovery in logistics following previous declines [5]. - **Container rates** remained flat sequentially but are under significant pressure, down **70% YoY** [5][37]. Trade Scenarios for 2025 - Two potential scenarios for trade in 2025: 1. A surge in orders ahead of a **90-day tariff pause** in China. 2. A slowdown in activity due to uncertainty regarding tariffs and inventory management [6][7]. - The likelihood of a pull-forward surge is seen as more probable, complicating volume and earnings predictions for transportation companies [7]. Tariff Impact - The **30% tariffs** remain high, potentially affecting demand over time, especially as e-commerce faces the end of de minimis exemptions [8]. - Three possible outcomes for transport stocks: 1. A significant pull-forward leading to inventory build-up followed by a drop in freight demand in the second half of 2025. 2. A less pronounced pull-forward, leading to uncertainty for shippers. 3. Economic stability leading to increased orders as retailers face inventory shortages [11]. Freight Forwarders and Logistics - Freight forwarders like **EXPD** and **CHRW** are expected to benefit from volatility and potential surges in demand due to tariff pauses [12]. - **Parcel services** (e.g., **UPS** and **FDX**) may also benefit from increased demand for air freight during this period [14]. Container and TEU Trends - **TEUs** from China to the USA increased by **10% YoY** in the latest week, following a previous decline [21]. - The overall trend in TEUs remains volatile, reflecting the dynamic nature of trade flows [23][27]. Port Activity - **Chinese major port throughput** increased by **3% week-over-week** and **5% YoY**, indicating a slight recovery in port activity [34][35]. - The **Big Three ports** (LA, Long Beach, Oakland) saw a **5% YoY decline** but a **21% sequential increase** from May to June, indicating a recovery trend [57][59]. Inventory and Cost Trends - The **Logistics Managers Index** showed upstream inventory expansion at **66.4** in June, while downstream inventories compressed at **44.2** [72]. - The **inventory cost index** rose to **80.9**, reflecting higher costs associated with inventory management [73]. Conclusion - The transportation industry is currently experiencing significant volatility due to tariff impacts, shifting shipping patterns, and fluctuating demand. Companies in this sector must navigate these challenges while looking for opportunities in freight forwarding and logistics as trade dynamics evolve.

Financial Data and Key Metrics Changes - The company reported a second quarter comparable store sales increase of 4.1%, contributing to a year-to-date comp growth at the high end of expectations [7][12] - Earnings per share increased by 11% to $0.78 for the second quarter [7] - The updated diluted earnings per share guidance for the full year is now in the range of $2.85 to $2.95, reflecting a 1% increase from the previous midpoint adjusted for a stock split [17][31] Business Line Data and Key Metrics Changes - The professional business was a significant driver of sales results, with comparable store sales exceeding 7% due to strong ticket count growth [9] - DIY sales contributed to overall growth with a low single-digit comp, although there was a small decline in DIY ticket count for the full year [9][10] - Average ticket size increased due to the complexity of vehicle repairs, with same SKU inflation contributing just under 1.5% [10] Market Data and Key Metrics Changes - The company observed continued softness in discretionary categories, indicating cautious consumer spending [11][12] - The effective tax rate for the second quarter was 22.4%, down from 23.2% in the previous year [31][32] - Inventory per store finished the quarter at $833,000, up 9% from the previous year [33] Company Strategy and Development Direction - The company aims to leverage strategic advantages to enhance competitive positioning, focusing on improving customer service to gain market share [16][88] - The acquisition of a new distribution center in Texas is expected to enhance service capabilities and support growth in the South Central region [28][29] - The company remains cautious about potential adverse impacts on consumers due to rising prices but believes in the resilience of consumer demand [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health of consumers, supported by strong employment and wage growth, but noted caution due to inflationary pressures [14][15] - The company updated its full-year comparable store sales guidance to a range of 3% to 4.5%, reflecting positive trends observed in the first half of the year [12][13] - Management acknowledged the potential for short-term consumer reactions to price increases but remains optimistic about long-term demand fundamentals [15][16] Other Important Information - The company successfully opened 105 net new stores in the first half of 2025, with continued growth in Greenfield expansion markets [25][26] - Free cash flow for the first six months of 2025 was $904 million, a decrease from $1.2 billion in the same period of 2024, primarily due to timing of renewable energy tax credit payments [33] Q&A Session Summary Question: Can you discuss the pricing pressure related to tariffs? - Management indicated that pricing pressure is difficult to quantify but remains focused on minimizing impacts to consumers while working closely with suppliers [39][40][41] Question: What could cause SG&A dollar growth to exceed expectations? - Management noted that continued inflation or cost-driven pressures could lead to higher SG&A, but they remain committed to providing excellent service to capture market share [45][46][48] Question: Has the cost of doing business increased due to industry consolidation? - Management acknowledged that the cost of doing business has increased but emphasized their long-term focus on maintaining operating profit rates [55][57][58] Question: How does the company view consumer behavior in response to inflation? - Management believes that while there may be some deferral in discretionary spending, the overall demand for necessary repairs remains strong [60][62][80] Question: What opportunities does the new Virginia distribution center present? - The new distribution center is expected to unlock growth opportunities in the Mid Atlantic region, allowing for better service and expansion [81][84]

Financial Data and Key Metrics Changes - Acme United Corporation reported net sales of $54 million for the second quarter of 2025, a decrease of 3% compared to $55.4 million in the same quarter of 2024 [3][9] - Net income increased to $4.8 million, up 7% from $4.5 million in the prior year, resulting in earnings per share of $1.16 compared to $1.09 [3][12] - For the first six months of 2025, net income was $6.4 million, a 57% increase from $6.1 million in the same period of 2024 [12] Business Line Data and Key Metrics Changes - The U.S. segment experienced a 6% decrease in sales during the second quarter due to canceled back-to-school orders linked to high tariffs [9] - Sales in Canada increased by 28% in the quarter, driven by higher sales of first aid products [11] - The gross margin remained stable at 41% for the second quarter of 2025, consistent with the previous year [11] Market Data and Key Metrics Changes - Sales in Europe decreased by 6% in local currency for both the quarter and the first six months, primarily due to shipment timing [10] - The company faced challenges in the U.S. market due to exceptionally high tariffs, which led to order cancellations [9][10] Company Strategy and Development Direction - Acme United is shifting production from China to other countries such as Malaysia, Thailand, Vietnam, and Egypt to mitigate tariff impacts [6] - The company plans to continue supplying customers with competitive total costs while maintaining service quality [6] - Acme United is investing in automation and expanding capacity in its facilities, particularly in the MedNap and Spill Magic segments [7][34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging market environment due to tariffs and supply chain disruptions but expressed optimism for growth in the third and fourth quarters [8][20] - The company is working with customers to recover delayed programs and anticipates that demand will not significantly decline [20] - Management noted that while there are concerns about overall customer spending due to price increases, they have adequate stock at good values [20] Other Important Information - Acme United's bank debt decreased to $23 million from $33 million year-over-year, and the company generated approximately $12 million in free cash flow [12] - A new facility for Spill Magic was purchased for $6 million, which will enhance production capabilities [7] Q&A Session Summary Question: What can be expected for the third and fourth quarters? - Management indicated that some delayed orders from the second quarter may come in the third and fourth quarters, and they are looking for growth rather than declines in sales [20] Question: Are competitors faring better or worse? - Management noted that one competitor had a disastrous quarter, while Acme United managed the tariff situation effectively [22] Question: Will the company consider cutting the dividend? - Management confirmed that they just raised the dividend and are comfortable maintaining it, supported by strong cash flow and reduced debt [22] Question: Are there capacity constraints in healthcare lines? - Management stated that the MedNap facility is experiencing increased demand and is working on productivity improvements and capacity expansion [32][33]

Core Insights - Hasbro Inc reported a notable second-quarter earnings and revenue beat, raising its revenue outlook and indicating a lower-than-expected long-term impact from tariffs [1] - Despite a 2.7% decline to $75.49, Hasbro's stock has shown significant improvement since its annual low of $49.00 on April 9, reflecting a 33% year-to-date gain [2] - The stock's pullback has found support at the $75 level, following a multi-year peak of $78.83 on July 1 [2] Options Trading Activity - Options traders have shown a bullish sentiment, with a 10-day call/put volume ratio of 6.47, ranking higher than 84% of readings from the past year [3] - Short-term traders also exhibit a call-bias, as indicated by a Schaeffer's put/call open interest ratio (SOIR) of 0.40, which is in the 5th percentile of readings from the past 12 months [3] Volatility Performance - Hasbro's stock has historically outperformed volatility expectations, as evidenced by a Schaeffer's Volatility Scorecard (SVS) of 95 out of 100 [4]

The impact of tariffs is just trickling into tech earnings, according to Grenadilla Advisory founder and CEO Anna Rathbun. She joins Caroline Hyde and Ed Ludlow on “Bloomberg Tech.” -------- Like this video? Subscribe to Bloomberg Technology on YouTube: https://www.youtube.com/channel/UCrM7B7SL_g1edFOnmj-SDKg Watch the latest full episodes of "Bloomberg Technology" with Caroline Hyde and Ed Ludlow here: https://www.youtube.com/playlist?list=PLfAX25ZLrPGTygCwn55voYZ_LYyKjxokJ Get the latest in tech from Sili ...