Financial Data and Key Metrics Changes - Total revenue in Q3 2025 was $132.8 million, down 15.2% year-over-year but up 300 basis points compared to Q2 2025 [11] - Gross profit was $28 million, or 21.1% of total revenue, compared to $43.9 million, or 28% in the same period last year [12] - Operating profit was $2.9 million, or 2.2% of total revenue, down from $10.6 million, or 6.8% of total revenue in Q3 2024 [14] - Net income was $1.7 million, or 12 cents per diluted share, compared to $1.9 million, or 14 cents per diluted share a year ago [15] Business Line Data and Key Metrics Changes - The core business expanded its reach with the Kitchen Collections by Hamilton Beach line being rolled out to a leading mass-market retailer [6] - The commercial business delivered outstanding results, with strong demand for innovative solutions, although inventory constraints limited performance [8] - The Hamilton Beach Health division achieved positive operating profit for the first time this quarter, with new partnerships and product launches contributing to growth [9] Market Data and Key Metrics Changes - Retailers resumed typical buying patterns after destocking inventory, leading to improved sales trends in Q3 compared to Q2 [4] - The decline in revenue was primarily driven by lower volumes in the US consumer business due to overall softness in consumer demand [11] Company Strategy and Development Direction - The company is diversifying manufacturing away from China to other APAC countries to mitigate tariff impacts and improve procurement flexibility [5] - A robust pipeline of new products in high-growth categories is expected to drive market share gains, including successful launches in premium segments [7] - Comprehensive cost management measures generated $10 million in annualized savings, with benefits starting to materialize in Q3 [6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning gross margins to historical levels as tariff impacts moderate and trade relations improve [10] - The company anticipates further progress in sales trends and gross margins in Q4 2025, despite ongoing market uncertainties [17] Other Important Information - The company repurchased approximately 39,000 shares totaling $0.6 million and paid $1.6 million in dividends during the quarter [16] - Net debt position increased to $32.8 million from $22.5 million at the end of the prior year period [16] Q&A Session Summary Question: Clarification on the $5 million tariff cost - The $5 million cost was related to the 125% tariff temporarily imposed in April and was absorbed as a one-time cost in Q3 [20][22] Question: Update on the largest retailer's ordering patterns - The largest retailer paused orders but has resumed normal shipping patterns, with expectations for a record number of promotional activities in Q4 [26][28]