HBB - Earnings call transcript Q4 2019 | Hamilton Beach Brands Holding Company

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Operator

Thank you for standing by and welcome to the Hamilton Beach Brands Holding Company Q4 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]

I would now like to hand the conference over to Lou Anne Nabhan, Head of Investor Relations. ahead. go Please

Lou Anne Nabhan

Executive Officer and quarter Chief Cheryl Hamilton everyone. and to and Also fourth Vice outlook. Treasurer Welcome will Brands for Mosier, Thank earnings good President, Tidey, conference Marketing. Senior the Q&A North Senior quarter Financial fourth Chief President discuss and Trepp, Sales results XXXX company. for and Vice call our and Michelle President, holding you, Scott America Greg our morning Officer; present and Beach our will webcast be

this will Yesterday release on after SEC. report XX-K an hamiltonbeachbrands.com. will the market afternoon found closed, posted of the website our we expressed on Today's statements, and posted. issued prepared earnings replay available Both with be either and call A cause annual presentation filed can risks at uncertainties transcript documents those when our are today's remarks which Form during results Q&A. be that a from in forward-looking actual materially and could to subject the the or differ contains to be

quarterly be at earnings until these forward-looking Additional our included statements, in update company and may obligation XX-K. uncertainties all. The which not was regarding risks disclaims next these if and our any information conference release call to updated

I'll the Trepp. And Greg now, turn call to over

Greg Trepp

everyone Thank thanks you for Anne. Good and Lou morning joining the call.

priorities and strategic end we entered cash XXXX, our of XXXX strong generation. revenue closure the the expansion Hamilton retail Kitchen of Beach on at Following flow growth, and Brands operations Collection's focused margin of

of by occurred are the Kitchen Kitchen of the but reported October as announced, Collection's as difficult, down planned decision you XXXX discontinued all the necessary and to closure of last wind operations. business, As end we know, KC stores now results many Collection the

been the of marks turning an value Michelle down is cash the forward had to becoming overall evident we which flow Kitchen time. details net market losses wind benefit in going the point. and hindrance business important and a to look our Collection's discuss the down, of our negative to wind over

amount. fourth the from quarter in our the any revenue I'll net included fourth XXXX and growth, Compared delivered in global now by and operations, which and record consumer continuing on of and increased by quarter history decrease consumer sales. highest XXXX, offset modest a was we results the X% to income by our review fourth driven significant international highest operating sales, partially revenue a profit commercial quarter for U.S. second

a strong profit income XX%. operations even line and with expected. grew that was were not robust as bottom net continuing from top increased deliver to We XX% line a Operating pleased as

main quarter, patterns we the was the promotions most going we fourth order from while impacting As impacted in in were line. retailers ongoing and patterns, of order fourth strong. tariffs. soft our indicated holiday into top the season third The issue benefit quarter, the that placements impact did the shift In quarter our adverse customer experienced generally

in not season late shortened get people promotions earlier. shop enough shopping The the to to and preseason traffic. holiday store Strong investments retailer were diminished Thanksgiving

our we and delayed weeks reorders company, did the peak and had industry by As the that sales materialize. a fully result, for not were anticipated several

As trade U.S. earlier a the the signed are despite still with year. that effect reminder, deal this tariffs China in

the reduced agreement, As part List X.X%. of that XX% on XA was to tariff

scheduled been canceled that certainly a XX on benefiting from not we entirely are cut. to December XB, effect go fully was into List However, which had relief.

tariffs of impact remaining business. the XX% still However, our

because implement we a we distraction second date, plans. was had XB mitigation still sort before half canceled to disruption drain, implementation resource of right since to and market the the major experienced all not And of through XXXX,

coffeemakers, XA, our business. List for the exclusions pursue to largest in continue which We includes category

promotions. top record experienced We in were many with of pleased quarter, a fourth challenges results. some our positive e-commerce generated we We strong sales. the Despite sell-through

growth Beach our X.X%. Hamilton in Brands grew which Proctor The industry. revenue compete increased segment compete the Silex mass the only-the-best kitchen Our brands in sales segment smaller small and which premium dollar XX.X%. U.S. industry, declined appliance outpaced X%. The

future, things message going iconic ranging a great that luxury our brands strong and portfolio Looking we're than to Beach The value has with leader you a more a is Hamilton like brands take lot the covering XX I'd a today categories. We're from to company. of key industry, away strong very to on. of in

highlights that We XX on based some performance Let momentum me and new our introduced in strengths year. platforms illustrate XXXX. provide product our last

and market categories we share than gained in Our more XX. three products in a share XX held top

fryers New of products and us in sizes. brands represented number well included making air a and cookers pressure

Our new received. Toaster particularly Oven Fryer Hamilton well Beach is being Sure-Crisp Air

introduced products for also XXXX. processors, new as, We such cookers, products blenders, We and categories, indoor new traditional similar extractors slow single-serve grills. a juice in coffee, mixers, lineup plan food of

XXXX, in for electronics products new of consumer launched a the slow across new we're holiday year's At be In showcased Wi-Fi of this show connected we multiple and and season. number in cooker. a coffee time our in all brands selling introducing maker will these January, items categories

We're moment. shop expansion excited which I'll to discuss and consumers popular create both coffee about in at line maker new to new egg an items, FlexBrew items enable single-serve maker a of more coffee products our such popular bites as an home.

is deeply one one that strengths our ingrained is culture. in of Innovation and our key

engineering development collaboration has for teams. deep process our been marketing, research, product across decades new in the making. and foster quality consumer Our We

working approach relies needs to innovation our together market. fact, to bring In teams on to consumer research-driven functional cross whole

innovation even years, including fast follow. space with that some we occurred We value be of in and to the are recent in refining that and strengthened a continuous we our innovation disruptive has improvement competitive ability new entrants well-honed our more process can

each information strength. and revenue represents. us annually. total initiatives. We initiatives the update providing you continue percent individual progress of specifics to make provide and more we're you we'll six it have are Today about that growth well asked of strategic what Many our with our They're to contributing to and the of working for

very XXXX. well channel e-commerce in in performed the We

Our U.S. for space developed growth. and market. in global infrastructure XX% in were of us grew invested a the digital on as sales needed for strength These e-commerce XX% even amounts this focused we the online facilitate total to The and and more accounted sales revenue. early channel higher is

Beach In the to continued units brand XXXX, number one e-commerce Hamilton be the channel. based in on sold

and brand Our earn ratings rating every favorable to XXXX. continued products star reviews stars of four and increased for and the we in above,

cocktail and of selling well year our Our Wolf as accounted -- began brands last system through that we driven Professional grew as XXXX revenue. multiyear X.X% Hamilton premium and the an new Only-the-Best exclusive growth brands our The X% by through Beach total by was for in Gourmet agreement. delivery Bartesian

one that of favorite were our selling and delighted Bartesian things selected giving were We the season Griddle the them Precision holiday visibility Gourmet Oprah's product high-profile with Wolf for consumers. as

brands. and We potentially to business products more expect significant Only-the-Best new the add plan in and upside

The Wolf a Gourmet, rounding are of that introducing full we later this countertop we stand we're last a line year year. out appliances and with that kettle our launched mixer

hand to Beach last our selling We are continue also that The round well. Hamilton very year out mixers line professional introduced we of products.

Indian food at in with processor all Beach Sure-Crisp and and this the Beach Professional year, launched spiralizer preparing India, cuisine a We're juicer product new Hamilton a new under we'll home. who bringing in grinder brand. enjoy Professional year also that digital offer U.S. the Last blender, the for a oven, out consumers mixer we Hamilton immersion

Our that and well last we year CHI Garment a is introducing Touchscreen we're introduced Handheld this iron Steamer. selling CHI year

circulator, infuser. sealer Weston, we vide dehydrator and sous smoke immersion For have vacuum new a great

in several XXXX After the products. we commercial global more tariffs X% the years our impact U.S. due to mostly business. than to growth, revenue Turning modest of a unfavorable decrease of averaging on experienced

for Commercial of accounted X% total products revenue. our

markets expect to About very this half sales return to business continue U.S. potential the across and globe. our are and the optimistic in We of it XXXX. growth the be half to other the commercial for about in in

XXXX. business Luckin we King service international some chain with China. last year in Coffee the nice secured Our very food wins Queen, Burger with Globally, more recently in Dairy and grew

chefs. are many pleased In developed we important introducing world. immersion line We're XXXX, we the which with brand-new be around blenders, very partnerships will tool a a for of the have

We have opportunities. good for momentum new

Mexico we recent long-standing have more years. Canada America, and growth a markets Our of five more Asia in annual have the international Latin and and generated America Central compound emerging in which in rate markets, a past than in and presence in presence X%

virtually for all international Revenue modestly. and markets XXXX, were of XX% XXXX. our In accounted in revenue declined markets soft in revenue international total generated

to XXXX. growth return We expect to in

basis timely some traditional new kitchen consumer branding, relatively small selectively continue and identified market have products to categories, and offerings. to appliance on leverage e-commerce react to inexpensively to channel and our opportunities We enables where and The responses new e-commerce us expertise. to sourcing, we new of a distribution outside introduce quickly the expand to

a care a plan new we called innovation the we rechargeable launched our first developed products Brightline care personal hair personal XXXX, and In cleaning product more through dryers including toothbrush. our Brightline to and sonic under add care products established facial a name, brush We that for brand oral process.

countertop a new other among also have We Beach new icemaker Hamilton products.

category its long-term it growth. significant can While is stage, deliver our in initiative new early believe we

is million and space fit always commercial revenue the strategic in valuation. the right would to acquisitions initiative in range million, right that of tuck-in both continue $XXX to bolt-on pursue $XX we and the Our the consumer sixth add considering opportunities at

Corporate President acquisitions. and that confidence momentum a new gives to potential Development on filled the focus us all intensify me, thereby they and growth value. Vice underway Strategy the our drive have In strong to reports recently We long-term shareholder of increase our initiatives, the position to that

over Michelle. I'll to call now turn the

Michelle Mosier

everyone. our Thank focus comments results fourth operations. morning, you, from will Greg, quarter and good initial on My continuing

profit $XXX.X a result increased X.X% in margin million, $XX.X SG&A and $XX.X Gross profit increased to million. profit of or gross to revenue. XX.X% million, of expenses. as X.X% increased XX.X% a to decrease expansion Operating XX.X% Revenue

expenses lower due expense margin profit due from profit sales gross and in sale higher decreased improvements gross advertising the promotion of to higher-margin and priced volume SG&A decreased primarily and higher $XX.X million The the $XX.X and primarily to environmental products. million, to were expenses.

in rate fourth Kitchen in a of the is tax certain effective allowance to Our tax The attributable primarily assets for compared XX.X% deferred Collection. expense against was year. deferred income the to recognized valuation prior increase XX.X% for the tax quarter quarter

year. million XX.X% diluted last increased per per million, or share $XX.X diluted $XX.X income compared share Net $X.XX $X.XX to or to

full where provided In activities of year, operating short million. cash activities near breakeven timing. due versus the prior cash provided XXXX, we by our were expectations was operating $XX.X fell For to by year

the inventory receivables XXXX. increased into While amount season, $XX.X the of collection in decreased the of larger million of which a of $XX.X trade order selling pattern of timing holiday shifted quarter result the late million, receivables first as a

was net than debt $XX.X million. prior at to year result, compared a million As higher $XX.X

result a as We this expect quarter of net working the improved significantly during timing. capital first

million XXXX, Capital expenditures million reflecting $X.X spending expect to very to excited for lower report we the quarter. our the in $X.X system and decreased We're to compared in new take live second that during to project. XXXX ERP

We returned repurchase stock share program to up last nearly $XX January including approved beginning Board December of ending dividends million million $X.X and new in million X, XXst, repurchases. $X stock and $XX The XXXX. million a in for to year XXXX shareholders

the I'll approved down in traffic Board for now the lowered our to turn further foot deterioration to to KC a profitability. Kitchen of which Collection. prospect future of due return October, outlook the Last wind

As Greg stores now of and operations. discontinued KC's reported all as operations end closed the ceased. are operating retail results year, mentioned, by the were

loss $XX.X loss net million the For $XX.X lease included agreements. The $X.X XXXX, several as terminate compared to million of charges to the in such the full was one-time estimated a year for million loss cost XXXX. net XXXX the

facilitate down the the continue remaining the through wind XXXX liabilities. settlement to to first half expect We of of

Xrd, All forbearance facility the were full on obligations with paid revolving terminated agreement credit XXXX. with lender under accordance was and December of the in the KC line in the

liabilities KC's exceed current million. $XX.X by As of its current assets year-end,

Inc. We available Company income paid reflected Beach are KC's expect liabilities Beach any and Holding that be nor out, will Brands obligations. guaranteed has from Hamilton once as Hamilton Brands assets of discontinued reversed remaining Neither operations.

will per earnings share of improve As cash Collection, flow exiting a and Kitchen consolidated going result forward. our

per full our As concern, KC year show share of XXXX, last the and impact KC's for million was statements earnings the as cash. $X.XX a was $X.X on KC operating of used a financial going year loss

discuss XXXX. full year I'll full to outlook for the compared Next, the XXXX year our

revenue you As of earned our the majority the and the of with business in half profit operating know second seasonal is year.

the average, industry to year. expect flat XX% on revenue trends, been of outpace the For and five the XX% profit years be and current past half our in which to second modestly grow have Based known revenue earned we relatively placements of of is on and operating overall. market the expected

well only and the e-commerce growth best channel as are We as the brands. markets expect in all

to the operating range is a no increase. retail to modest of be expected plan, flat Given profit currently in

placements updated. the our to margin of we will products. As modest clarity as half higher increases expansion for be outlook margin about second sale We're focus gross higher continue aiming on priced

decreases nature in our in increase in to financing generating SG&A the and expenses towards $XX goal However, XXXX are of expected repeat. Cash before to we move cash expected is as activities one-time not million. in were excess of flow significantly

in Planned capital tax outlook understanding on and expected the suppliers approximately of are China. be XX%. of in rate million the expenditures to This impact XXXX is effective is be coronavirus $X.X expected our to our based our on current

families their makes the very unpredictable to very are potential impact all happy that our nature anticipate business. to in The virus the to healthy. we're of First, difficult our and it employees of China report

who returning a situation, and varying of to work challenges on of slowly the degrees minimize our period taking steps at to expect monitoring production to we capacity. customers We with suppliers are number disruption. inventory Based a our we manageable are of are current

impact of the year the half the to our and we do profit the mentioned earlier, I expect occurs majority and in As not half. of second revenue second disruption

continue We which to We'll adjust unpredictable. outlook. the to as situation it highly remains coronavirus worsen fluid monitor conditions need could if update closely an necessitate our and to

our That Q&A. now line the back we'll and the prepared to operator for concludes remarks turn

Operator

first Baird. question Kleber from from Thank Justin you. [Operator Our Instructions] comes

Justin Kleber

outlook then the revenue the just on the thinking rank primary color growth. appreciate how modest additional order at commercial? about across you're taking questions of start your initiatives. and to for it as global U.S. consumer, guys. and XXXX you Can for good three Yes, us relates provided some you Thanks strategic consumer, growth for businesses; least international Wanted sizing morning to the

Greg Trepp

Greg. is this Justin

that better we're taking back until up growth is North we given that the and -- the business the our in a So, take half our promotions approach we're get American a business assuming level stronger and -- little view of front of on to going in I that we we're a international. think have probably largest part little the should that commercial fact bit just of

outlook be those to think for to into I that. But promotions you commercial. rate the second things of we I of And about on growth quarter, business little think a we'd bit we generally in speaking start have and types as count we'll and in American the sense hear a and North gave the a and higher move and placements able in better international

Justin Kleber

shaping loaded? you Okay. given into months the quarter a we you this but in quarterly quarter good back-end more And pretty is expect the to guidance, revenue then for I have obviously how is year, imagine guys don't Or up, two the first feel grow should we're year-over-year? outlook XXXX provide first

Greg Trepp

what but by Yes, going full a it's with year really that's guidance. ups we're And really we've Look, year. downs and stick got the full Justin, quarter. to

Justin Kleber

revenue I be share? from first I the is that half know there Okay, the a and and slowly I you I are capacity? mean Michelle you factories production? at of back percentage to utilize mentioned frame today up your mean Is And of in to fair specific here coronavirus. willing assuming you're the hit returning guess The suppliers what then that year enough. can you'd what running impact that that?

Greg Trepp

it you people was flummoxed are Sure. – a the a status thing. bit I'll give by background really of a of and lot

as – by revenue there's important of occurs virus, today, Also, we So just family majority employee – have been profit or back business thing. a the which asset-light said, half. our the first It's has as coming that our and important of I'll of there's lot have it's that remember a because really is the Michelle companies, very all, of affected say to member news no model. of we a lot in important out we a an also from that

owned New manufacturing in because many brought weeks fortunately pressure expense year. have have Chinese just companies on and we year, time to multiple happens we every in about Year that the also at week the and hear shutdown happens operationally – cover pressure now of China always that large a you that So don't facilities inventory of because

receiving after inventory and the coming every New in water and Year, the been as Also, containers all so we've on ramp-up workers Chinese we speak. So slow at along far a have the have year where suppliers come back process pace. a

could year. that slow or Year Also, post every important the have And ramp-up provides XX in that together. so you weeks a and time when situation. safety our retailer on put It note six, it's happens to on depends our we – depending it Beach New But two that have stock model, and Hamilton retailers some the be eight, even those safety Chinese buffering.

there's into think things lot go about are how that that do the what So normal expected. we all ramp-up will issue much a that variables ramp-up what gap of the the things really lot from is delay we determining, is a slow the but time happening be, happening and here we hear in of

And to back our our so and are right and suppliers majority of monitoring we that suppliers talking their now, the sub-suppliers, running. up know

ranges reporting slowed situation. meet the they happens and a manageable up in from a of All I And of unpredictable. situation range in definitely to they And XX% always and what that but are said, working XX% that. two The if becomes that at it there's all expect next ramp what them anyways, think. be happens capacity capacity. But like weeks, to to to They're all are back three that's capacity. limited full it up is hard is,

a and most that are we – happen sorts very and what and would is what potential all that – ramp-up gap of all delays those would be to manageable of likely out modeled We've likely then, second in in once third occur spike would come quarter. the comes quarter. late would the with quarter in second that the and up refill the running periods or expected the everybody's And either

to very same by would there's what going manageable a So be and split be different which a either little in happens the quarters. month it large into push two, refill be quarter – small gap not a or a bit could it can or

So the seem be – low think change those seem would to of have some But do that to up case and speed which to then likely. have scenarios we lastly, likelihood, a now, in don't that be but dramatically. way worst coming situation they as we

the unpredictable. gives we think things the hopefully, is on we'll every situation is color see again, and that So But some fact But coming are learn that certainly, you manageable. based week this along. more how

Justin Kleber

for Greg. Thank That's that, you great color.

Just should outlook about you expansion points it year. XX decline here XXXX? you you the degradation to Or maybe that for were the down something modest than XXXX for Do more think we in all in margin margin claw expect expansion, you full that can like experienced shifting your gross looks basis of back XXXX?

Greg Trepp

we – higher like an a Things with we're we're trend line. as line rate example. little going in think commercial believe our to back I be have

just we growing think of and in think Only-the-Best where we're projecting – mix. I So business terms our of our within some

where but of I little – better we're line on So a our better of which view a trend go at be think -- back get level of working huge this back we're a to bit. in up we a the get little back a to kind And think in But year. is level, just course, hope to goal to our to was. up change of is our hard we'll based I sort year,

Justin Kleber

to major controls you system it ERP to new or maybe us in XQ. on it? live just associated Can this And in the then doesn't is a guess system any question ensure the and have with understand hiccups I are seamless transition place help test what going

Michelle Mosier

Justin. ERP Weston management portion a of one it the the automating Yeah, benefits we're small business of business. is using The currently very system that system the greatest warehouse our and for

it we almost and for been now. using it have testing a So year

we've are is going working. right we – more There Hamilton testing. unique that bigger through end-to-end through the through that testing – bit user a business a bit acceptance it's been of feel So little is good now. we're Beach been little pretty some but We've complex, several pieces rounds

us very today, we it's to go-no-go pretty cautious to going the we're we've we're So that, live. being But do what good when decision. in needed sure, to work done go definitely we make feeling for

Justin Kleber

That's Okay. Thanks had. time. guys. all for so to That's hear I much the great

Greg Trepp

Justin. Thanks,

Operator

you. [Operator Our from question Instructions] Thank Michael from Zuckerman. Fisherman next comes

open. Your line is

Michael Fisherman

Good morning.

Greg Trepp

morning, Good Mike.

Michael Fisherman

little Could trade more And into you flesh much the recovered cash receivables into in detail out or already just how QX? QX? you've a on give

Michelle Mosier

loaded. didn't see the yeah, was really hoped. that coming So had the on some holiday as back of season We pre-Thanksgiving Mike activity much we

terms. our customers our – They're our standard net are typically So XX. with terms

customers Some than are longer bit a little that.

get I'm just collections were So sales capital didn't ended number, at working the really to as where at would. definitely I the we the had the later is end stronger December. end in give going we we period, that hoped not of but than the much January we a think of

Michael Fisherman

is there differs I or e-commerce how whether And Okay. then about quarter? quarter if year that know, Scott But full don't the fourth could and just you versus talk too. last fourth Greg,

Scott Tidey

this Yeah. is Michael, Scott.

I we XXXX. communicated fixed the We that those get If we did in issues had think those felt year look at throughout you year as like our year. and throughout the we e-commerce kind last of corrected we

in our we nice saw reported that we we across all business, growth board as Canada the markets. the U.S. So but and actually saw of also particularly in

Michael Fisherman

detail year? quarter relative dealing anything year versus transpired more did with Amazon Could last peers -- on were through little the you give how and just a fourth to their change what your

Scott Tidey

back as we think some communicated I policy. MAP XXXX our in we issues Well had regarding

we retailers be MAP expected. we retailers focused the I that the were who result focus. get share as larger margin. We problems say issues. And much the we we very and We and we able what changed a with have felt that online had dot-com promotional was growing to on to thought of XXXX, strong in regarding also are relevant did promotions issues We some had some not the corrected those our that like would more we're in and XXXX. going

So XXXX unexpected and on going they that were concerns to were margin and making them we their focused We because that we have our margin promotions the aspect. meet aligned with volume their thresholds. didn't sure experienced in thresholds were

Greg Trepp

Mike this is Greg.

comments penetration where there. Just the on is In U.S. the a e-commerce that. said, markets quick behind great like the as adding a couple Canada doing Scott of job team's

XX So we're very behind growth Canada strong seeing it's percentage the very that Mexico and a taken through has business and past further of our the year being done really larger be off is business on a to done forefront commercial is -- to very channel. just -- Commercial great model. team that is of as an a industry, but in months the job different globally market. is

So there. are in pretty really there's couple doing the strong U.S. well it's in different players a that But impact that having we're a of with.

that overall, So broad-based going way. the of industry and it's us feel keeps I think strength we a good that

they're from. customer going so the the keep to shopping there following wherever we're consumer And and be and

Michael Fisherman

Okay. you flesh have U.S.? out just And in can commercial impacted by revenue tariffs the would been the why

Greg Trepp

good a That's sure. Yes Sure. question.

maybe there's running in X business. would operators X a chain their unit their hotels a of that up their buy, cover or for put give were their is cost is had say is We're investments And on to -- or there's to of of refreshments to one what -- they the sort up coffee examples. back products with those normally you they I'll got -- was reduced went in on -- amenities budget have to increased a are in there broader a a going the they've a okay refreshed where, have. our lot the of to iron -- have One that business number if So trying costs costs, two one. would cut set but off or not would a things the they maker but things for the room they're they when

across businesses amenities service up So chains the we that saw the not off. just of went number industry. But on side particular purchased our fall also our equipment in business food

so And caused just to slowdown. that them

You see what tariffs. with happened

on were going again As you know the be again. tariffs to off

and a in want pay turnaround price. so to go of down And it folks have back then lot for didn't something and

it lot just created a So tighter budgets. uncertainty of or

And a customers up we been firmed and to on getting decisions of delay that saw back so just seems decisions now have it here. like the lot they're business

But based sort see right to hearing -- focus how now on is what meeting have impacts going some things. of tariffs we'll to their usual business and they're as on coronavirus we're the trying business those back Now to of needs. now

Michael Fisherman

Okay. greater in -- XXXX? And commercial are in expecting the than X% revenue you growth

Greg Trepp

accelerate We did you we the we -- and to the but have giving we say past what the that, guidance area, are of are years. by not number growth That's is we number a growth want over our rate going mentioned X% in years forward.

So we invested more to do that.

to fast as as get possible. So -- commercial is goal the certainly growing that

Michael Fisherman

of comment of large line pending a you gave here Dairy anticipated and of terms in addition That's to closure opportunities. Queen? Okay. just us some in sight And Luckin

Greg Trepp

Yes.

Michael Fisherman

big has understand help in to thousands sure be? I'm of to there accounts these going get not locations. you're Okay. Is could any how an way conceptualize opportunity to detail, want Luckin you're going us say but of

Greg Trepp

get sort we've to I'll product at a little break. sale. placements machine bit every of sales chain year, pipeline usually big gets you When or then pick might chain residual a given that's we've fair No. on so stick get Mike were we shelf big big we'll got the -- open One of retailer Scott well one in to say you a a month. up balance guidance, the a up thing And major -- might on question. that, orders the here he to if is a that get new stores always the

a have you sort much so demand. And of ongoing lower

to growth. year to a that, but that one deliver to chain, not get every get you offset you've only get one then So another another big got

growth say I wins So that, just offset along along X% keep so year. we goal feeding last think pipeline, And enough be year. at that to try can is coming had sort we I'll deliver the investing the per we we that. goal the that to of we're have feel to coming is good that is that wins what hopefully wins And again -- to least

Michael Fisherman

did going to in XXXX XXXX? come win that Luckin or The impact that's

Greg Trepp

both. be Should

Michael Fisherman

then the of you international specifically? in is tell China in know your at And how Okay. least terms Can XX% revenue, in I XXXX. much revenue us of

Greg Trepp

start going segments that to or that. on become break but we'll more we're we'll No, provide big markets color out if -- not enough to

Michael Fisherman

to biggest But fair say Canada your two Mexico is are it that and markets?

Greg Trepp

Yes.

those many, So many years. been for in we've

-- we've to decades. the for our those where be. definitely been That's So is are our -- American strongest market strongest the North place

Michael Fisherman

in Okay. third pushed terms not in on ordering us it it get or about back of just the compressed does you detail in the what in changing happened Or did that change patterns? season QX? the what some of on into retailer the Can And because QX? manifest occurred Does give patterns. happen holiday order retail quarter

Greg Trepp

Sure.

mentioned. definitely in pushed is drivers fourth the had placements. talked our we the quarter what and then, orders one of fourth from several quarter into of performance is, we sort the quarter And So, always as there's third we about

outlook time. strong we So, do all strong know we knew based had we on placements do we -- placements? Do to get we we And the do had think we and the support have based promotional our at strong -- that placements. you we

And so, all we we were thought. worked that as -- out

retailer then And therefore card holidays the the consumer purchases. And then always wild of the -- reorders. is big

sell don't have imagine think products So are can sell. that to we going what -- we if we to might some you

is retailer because didn't the order The well. all fine. not reorders through it our sell would therefore just then products sold good news So,

a could major or sell-through it a from buy expectations. when described you dollars But they all headwind. didn't what be could don't What in And be something hear season below open they you most that you a heard case, as what the this had to where a and results was, category have happens, different competitor see they different holiday retailers. the retailers

and Some as thought had do. really but okay, they'd they not much as had difficult ones some

that holiday to didn't sold additional period expected. that later get because season we And those all holiday didn't so purchases, if we they level the traffic get that that shortened and that, reorders normally we or foot of holiday the would period,

get retailer the that just So, for third or pull we didn't quarter did get final holidays. purchases. the push delayed We

into the where there's on now as a and is so shelves right normal a And sorry, of half mean of part the And restocking our in I that biggest back we quarter in our we're of fourth quarter type first situation -- back go the thing. year.

So, the a XXXX. we bottom at good look wanted in on for I well as positioned and a not quarter as think particularly as the really we being good, having solid last fourth year we're year line,

Michael Fisherman

change the continue, Have in tariffs? changes you in order all with any lessen seen the retail pattern worsen,

Greg Trepp

on of into -- definitely I is is we so, changing The definitely to not -- season. the things Scott, tariffs of were to missed front. was went for lower and holiday if don't in that certainly and going was post-holiday then all are and rates than effort period was know discussion a happen work lot it the there it discussion and the topic although now anything and period. I When as definitely a it distractions happen and holiday way through going

Scott Tidey

No, I Michael. think right, that's

list February On came you know, on the the off XX. some as -- things

U.S. some are in for I the still it's inventories. trying definitely the And their think to out out so, retailers balance smoothed most part, But

Michael Fisherman

Thank you.

Scott Tidey

you. Thank

Operator

Instructions] [Operator call turn to Thank questions I this further remarks. I'll queue the Trepp closing at you. for time. show in any And don't back the now Mr.

Greg Trepp

a you takeaways. I'll key Thank you few and with leave

at we're business. As a I beginning, very happening in positive strong stated company many the with the things

we win will above-market We initiatives strong and strategic term. believe to long time. have have and generated growth. revenue our We of that in team with believe gained strong for a execute that traction over investing the creativity continues professionalism Many

return level many the new in and business low we growth. increase of which and the portfolio, a as on investing higher asset-light We're as investment our growing of relatively with relative generally the channels focus has total strong been years levels free structure. achieve expect for standards. capital industry brand maturity debt capital positions We strong employed, initiatives returns leveraging forms to on introducing to products, us cost generate high an cash to low our and several next The current over level distribution of flow potential expanding and

financial shareholder as again balance Thanks build focus long-term today. a we call and joining work We will on our long-standing sheet for continue value. to flexibility strong our final

Operator

Thank call. today's conference for concludes And you this participating.

now may You disconnect.

Hamilton Beach Brands Holding (HBB) 28 Feb 202019 Q4 Earnings call transcript