Garden City-based Lifetime Brands Inc. Thursday reported a slight increase in third-quarter net sales and higher net income, driven by a stronger performance of its U.S. wholesale business that partially offset the impact of foreign currency swings.
The global provider of branded kitchenware, tableware and other products, including Farberware and KitchenAid, posted consolidated net sales of $163.2 million for the third quarter, ended Sept. 30, up 0.6 percent from the $162.2 million reported in the corresponding period in 2014.
Excluding the effect of foreign currency swings, sales would have increased 2.9 percent, the company said.
"The depreciation of the British pound, the Canadian dollar, the Mexican peso and the Brazilian real against the U.S. dollar decreased gross margins at our U.K. subsidiaries and our partner companies in Canada, Mexico and Brazil by increasing their costs of goods imported from Asia, where purchases are denominated in U.S. dollars, and hurt sales due to higher prices being passed along to customers and consumers," Lifetime chairman and chief executive Jeffrey Siegel said.
Lifetime Brands swung to a profit of $5.1 million in the third quarter, from a net loss of $1.6 million in the corresponding period in 2014. Its adjusted net income was $5.9 million, or 41 cents per diluted share, compared with $5.7 million, or 41 cents per diluted share, in the same period in 2014. Adjustments include acquisition-related expenses and financing expenses.
Due to exchange-rate fluctuations, the company lowered its forecast, now saying that net sales are likely to increase 2 to 3 percent for 2015, instead of its original forecast of 3 to 6 percent. The company expects to benefit from strong holiday shipments.
Shares of Lifetime Brands fell $1.78, more than 11 percent, to close at $13.81 Thursday on the Nasdaq.