GARDEN CITY, N.Y.–Lifetime Brands reported net income of $4.9 million in the third quarter, reversing a net loss of $1.1 million in the third quarter of last year.
The housewares manufacturer was able to go from red to black in spite of a 21 percent drop in quarterly net sales, which totaled $111.4 million. Lifetime slashed its selling, general and administrative expenses by 29 percent. Also during the third quarter, cost of goods sold, distribution expenses and restructuring expenses fell by 19 percent, 27 percent and 85 percent, respectively.
Jeffrey Siegel, chairman, president and chief executive officer, said Lifetime has firmed its financial picture through its ongoing restructuring activities, which involve more stringent expense controls; and through its efforts to reduce and rationalize its inventories. Siegel noted that as of Sept. 30, Lifetime’s inventories, on a dollar basis, were nearly 26 percent below their level as of Sept. 30, 2008.
Siegel also said retailers’ own efforts to keep inventories in check had a negative effect on Lifetime’s sales, and added that he expects retailers to continue taking a conservative approach to inventories going forward. However, he observed that Lifetime has achieved new placements in all of its product categories, and has “significantly increased” its market share in dinnerware, picture frames and its newest category, water bottles and thermal coffee mugs.