Lifetime Brands Sales Climb 11.1 Percent in Q3
GARDEN CITY, N.Y.-The inclusion of results from Fred & Friends and the company's home-solutions product categories boosted Lifetime Brands' third-quarter net sales by 11.1 percent, to $142.2 million.
Net income in the quarter, which ended on Sept. 30, was reported at $1.1 million, down 71.9 percent from last year's third quarter. However, this included an increase of 100.5 percent in its provision for income taxes, plus equity in earnings (losses), net of tax, of $(5.5) million. Adjusted net income was $6.1 million, up 19.6 percent from the third quarter of last year.
Jeff Siegel, Lifetime's chairman and CEO, said that, along with the results from Fred & Friends (acquired last December) and the home-solutions products, the company's core kitchenware products "performed exceptionally well, reflecting the rollout of new products and programs."
Gross margin finished the quarter at 36.1 percent, up 98 basis points from last year. Selling, general and administrative expenses increased 11.8 percent in dollars and 13 basis points as a percentage of sales, to 20.4 percent.
Although the company's fourth-quarter outlook is positive, Siegel said Lifetime is reducing its sales guidance for the full fiscal year at an increase of 3-5 percent. This is because of "some concerns about the overall strength of the holiday shopping season and the types of products on which consumers will spend their money," he said.