Hamilton Beach Brands Holding (HBB) risk factors, FY2025 10-K

Industry Risks

1. 01Our business is sensitive to the strength of the North American consumer markets and weakness in these markets could adversely affect our business
2. 02Our business is dependent on key customers and the loss of, or significant decline in business from, one or more of our key customers could materially reduce our revenue and profitability and our ability to sustain or grow our business
3. 03If we were to lose, or experience a significant decline in business from any major customer, or if any major customers were to go bankrupt, we might be unable to find alternative distribution outlets
4. 04The concentration of our brand name small electric household and specialty housewares appliance sales among a few retailers could materially reduce revenue and profitability
5. 05Our inability to compete effectively with competitors in our industry could result in lost market share and decreased revenue
6. 06Changes in consumer shopping trends and changes in distribution channels could result in lost market share and decreased revenue and profitability42% rewritten
7. 07Rapid technological changes and advancements, including developments in artificial intelligence and agentic shopping, could also impact our ability to remain competitiveNew
8. 08The markets for our products are dependent on consumer spending and typically peak in the fourth quarter, which could result in significant variations in revenue and profitability

Business Risks

1. 09Increases in costs of products may materially reduce our profitability58% rewritten
2. 10Substantial disruptions at any of our distribution centers could have an adverse effect on our business, operating results and financial condition
3. 11We depend on third-party suppliers, primarily located in the Asia-Pacific region, for all of our products, which subjects the Company to risks, including unanticipated increases in expenses, decreases in revenue and disruptions in the supply chain
4. 12Certain products rely upon a single third-party supplier
5. 13We are subject to changes in our customers’ inventory management strategies
6. 14Our expansion into the health and wellness market may result in unexpected challenges and inefficiencies, which could have an adverse effect on our business, operating results and financial condition36% rewritten
7. 15Our ability to attract, retain and develop key talent is crucial to our results of operations and future growth
8. 16Our business could suffer if information technology systems are disrupted, cease to operate effectively or become subject to a cybersecurity incident
9. 17Failure to comply with personal data protection and privacy laws could have a material adverse effect on our business, financial condition and results of operations
10. 18The Company’s good reputation is critical to the success of our business

Financial Risks

1. 19Our financing arrangements contain various restrictions that could limit operating flexibility
2. 20We are subject to foreign currency exchange risk

Regulatory Risks

1. 21We may become subject to claims under foreign laws and regulations, which may be expensive, time-consuming and distracting
2. 22Our obligations relating to environmental matters may exceed our expectations
3. 23The Company is subject to litigation risk which could adversely affect our financial condition, results of operations and liquidity
4. 24Our intellectual property rights could be infringed and adverse events regarding licensed intellectual property could harm our business
5. 25Our business subjects us to product liability claims, which could affect our reputation, revenue and profitability
6. 26Our business involves the potential for product recalls, which could affect our revenue and profitability
7. 27Failure to comply with public health, consumer protection and other regulations could affect our reputation, revenue and profitability40% rewritten
8. 28Compliance with multiple, and potentially conflicting, domestic and international laws and regulations, including anti-corruption laws, may be difficult, burdensome or expensive23% rewritten
9. 29Government regulations could impose costly requirements on our business
10. 30Changes in U.S. and foreign trade policies, tariffs and other government actions may increase our costs, disrupt our supply chain or otherwise adversely affect our business, financial condition or results of operationsNew

Risks Related to Our Common Stock

1. 31The amount and frequency of dividend payments made on the Company’s common stock could change
2. 32Certain members of the Company’s extended founding family own a substantial amount of Class A Common and Class B Common, and if they were to act in concert, could control the outcome of director elections and other stockholder votes on significant actions26% rewritten