Core Viewpoint - The second quarter of 2025 presented significant challenges for Hamilton Beach Brands due to trade disruptions from new tariff measures, leading to a notable decline in revenue but an improvement in gross profit margin through strategic actions taken by the company [2][3]. Financial Performance - Total revenue decreased by $28.5 million, or 18.2%, to $127.8 million compared to $156.2 million in the same quarter of 2024 [3]. - Gross profit was $35.1 million, representing 27.5% of total revenue, an increase from 25.9% in the prior year, attributed to a favorable shift in customer mix and higher-margin sales [4]. - Operating profit fell to $5.9 million from $10.0 million year-over-year [5]. - Net income was $4.5 million, or $0.33 per diluted share, down from $6.0 million, or $0.42 per diluted share, in the previous year [6]. Cost Management - Selling, general and administrative expenses (SG&A) decreased to $29.1 million from $30.4 million, primarily due to lower personnel costs, despite a one-time severance charge [5]. Cash Flow and Debt - For the six months ended June 30, 2025, net cash used in operating activities was $23.8 million, a decrease of $60.9 million from net cash provided of $37.1 million in the prior year, largely due to inventory changes [7]. - As of June 30, 2025, net debt increased to $38.7 million from $12.8 million a year earlier, with total debt remaining at $50.0 million [9][18]. Shareholder Returns - The company returned value to shareholders through share repurchases, buying back 215,297 shares for $4.0 million, and paid $1.6 million in dividends during the second quarter [8]. Market Outlook - Due to increased uncertainty from higher tariffs, particularly affecting imports from China, the company has opted not to provide specific guidance on its business outlook [10].