Lifetime Brands Q2 Net Loss Hits $3.2 Million
GARDEN CITY, N.Y.-Lower gross margin and increased expenses led Lifetime Brands to a second-quarter net loss of $3.2 million, compared to a net loss of $568,000 in the second quarter of last year.
Gross margin in the quarter, which ended on June 30, was down 207 basis points to 35.42 percent--the result, according to Lifetime Chairman and CEO Jeffrey Siegel, of its efforts to create opportunities for greater market share. Selling, general and administrative expenses rose 21.2 percent in dollars and 101 basis points as a percentage of sales, to 27.3 percent. Siegel attributed the jump in expenses to the costs of Lifetime's acquisition of Built NY and investments toward increasing the company's domestic business.
These factors offset a gain of 18.9 percent in net sales, which totaled $115.3 million. Much of this sales gain came from top-line results contributed by Built NY, Kitchen Craft, La Cafetiere and Empire Silver--all of which Lifetime purchased in the first half of this fiscal year.
Siegel said, "The first half of 2014 has been a period of remarkable activity, in which we successfully executed strategic initiatives in acquisitions, brand development, channel expansion, product innovation and geographic growth." Lifetime expects sales for the full fiscal year to total about $600 million, he added.