Lifetime Posts Net Income Increase in Q2
GARDEN CITY, N.Y.-Lifetime Brands reported a rise in net income and a 4 percent increase in sales in its second quarter, which ended June 30.
Net income for the quarter was $2.1 million, compared to a net loss of $1 million for the second quarter of 2010. Consolidated net sales were $90.4 million for the quarter, compared to $86.9 million for the prior-year period. Sales in the retail direct segment were $1.3 million, compared to $4.1 million in the comparable-year period. Sales declined in that sector due to decreased promotional activity as well as the termination of the company's print consumer catalog, the company said.
Gross margin dropped 140 basis points to 37.7 percent. SG&A dropped 6.6 percent in dollars and 256 basis points as a percentage of sales to 22.6 percent.
"The net income we are reporting this morning is a second quarter record for Lifetime Brands," said Jeffrey Siegel, chairman, president and CEO. "Despite the challenging business environment, we are on target to achieve top line growth and increased profitability for the full year. Our solid operating results and further strengthened financial position give us better flexibility to profitably grow our company in the future."