Hamilton Beach 2009 Annual Report Download - page 16

Download and view the complete annual report

Please find page 16 of the 2009 Hamilton Beach annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 22

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22

13
implemented in early 2009 all contributed
to Kitchen Collection’s turnaround. The
company generated positive cash flow
before financing activities of $4.3 million
in 2009.
The Kitchen Collection
®
stores, which
sell more basic kitchen items, had very
strong results in 2009 as consumers sought
value brands and items for basic needs.
While the average sales transaction value
was lower, the Kitchen Collection
®
stores
experienced more sales transactions due to
an increase in customer visits. The Kitchen
Collection
®
stores also benefited from
new and seasonal stores and improved
merchandising and promotional activities
in the second half of the year that resulted
in improved margins. The Le Gourmet
Chef
®
stores, which sell higher-end goods
focusing on entertaining themes, struggled
in the early part of 2009 but ended the
year much stronger with an increase in
transactions and a higher average sales
transaction value. A new, revitalized store
format and website for the Le Gourmet
Chef
®
stores, focused more on food,
tabletop and on-trend merchandise, was
fully implemented as the fourth quarter
holiday season opened, helping drive
customer visits, sales volumes and
improved margins.
Market Outlook for 2010
Despite uncertain consumer spending,
which remains constrained by financial
concerns and high unemployment rates, the
outlet mall market appears to be improving.
Against this backdrop, Kitchen Collection
expects a modest increase in revenue in 2010
compared with 2009, despite the planned
closing of a number of under-performing
stores. Favorable sales and margin trends
that occurred in the reformatted Le Gourmet
Chef
®
stores in the second half of 2009 are
expected to continue into 2010.
Actions Being Taken to Move
Forward in 2010
In 2009, changes in upper management
at Kitchen Collection strengthened a
seasoned team with significant consumer
Le Gourmet Chef®stores
display goods in theme-oriented
sections featuring Spices, Barbeque,
Cookware, Snacks, Tex-Mex,
Baking, Breakfast and Seafood.
Featured is the storefront
for the Paramus, New Jersey, store.