TODAY'S PAPER
45° Good Afternoon
45° Good Afternoon
Business

Garden City kitchen-appliance maker reports loss, sees share price tumble

Jeffrey Siegel, president and chief executive of Lifetime

Jeffrey Siegel, president and chief executive of Lifetime Brands in a the company showroom in Garden City. (Nov. 16, 2010) Photo Credit: Danny Ghitis

Garden City-based home goods maker Lifetime Brands Inc. has seen its share price hit hard in the past couple of days, after it reported a loss in its most recent quarter due to price rollbacks on some merchandise, and the effects of increased consumer food, clothing and fuel costs.

Lifetime's product lines include Cuisinart, Farberware, KitchenAid and Mikasa.

By noon Friday the stock had lost 17 percent of its value in the past two days of trading.

Its share price had closed Wednesday at $15.47, and it issued a before-market earnings report Thursday. That day, it opened $15 and sank to $13.94 by closing. Then Friday it closed at $12.32.

For the first quarter, ended March 31, Lifetime Brands said it had a loss from operations of $23,000, compared to a profit of $2.5 million for the corresponding period in 2010.

"Lifetime's first quarter results reflect continuing challenges in the retail economy, which have constrained sales at certain large retailers where such retailers' traditional consumers are especially sensitive to increases in the price of food, clothing and fuel," Jeffrey Siegel, chairman, president and chief executive officer, said, 

"In addition, during the quarter, we temporarily reduced certain prices in connection with targeted marketing programs and retailers' price roll-back strategies," Siegel said. 

Though it saw a loss instead of a profit, sales were on the rise in the quarter, Lifetime Brands said. Consolidated net sales for the first quarter of 2011 were $91.8 million, an increase of 3.5%, as compared to consolidated net sales of $88.7 million for the corresponding period in 2010.

Net sales for the wholesale segment were up $2.8 million, or 3.4%, to $84.9 million in the first quarter of 2011. Net sales for the retail direct segment were up $0.3 million, or 4.5%, to $6.9 million in the first quarter of 2011, the company reported.

Photo shows Jeffrey Siegel, president and chief executive of Lifetime Brands in the company's Garden City showroom in November.

Comments

We're revamping our Comments section. Learn more and share your input.

More news