Garden City-based Lifetime Brands Inc. Tuesday reported a narrower net loss and an increase in revenue for the first quarter, reflecting its investments in e-commerce to adapt to a rapidly evolving retail environment.
The global provider of branded kitchenware, tableware and other products, including Farberware and KitchenAid, posted net sales of $113.4 million for the first quarter ended March 31, compared to $110.9 million during the same quarter last year.
“Our investments in a first-class e-commerce team and systems over the last several years have enabled us to take advantage of the increasing penetration of online sales and to offset the impact of lower store traffic and soft consumer spending at traditional brick and mortar retail,” Jeffrey Siegel, Lifetime’s chairman and chief executive, said in a statement. “We are pleased that we made these investments early, as the cost of playing catch-up in the world of e-commerce is extremely high.”
Lifetime Brands’ net loss for the quarter was $1.3 million, compared to a net loss of $4.3 million during the year-earlier period.
As part of a program to reduce expenses, Lifetime Brands has reorganized some divisions, reduced management layers, and relocated several key product engineering positions from the United States to Asia. The company also plans to relocate or consolidate distribution centers on the West Coast and in Europe.
“We expect these improvements to result in $10-$13 million of additional annual pretax profit,” Siegel said, with the full impact of the changes being realized “over the next 18 to 24 months.”
The company also forecast its revenue would grow about 3 percent in 2017.
Shares of Lifetime Brands rose $1.25, or 6.85 percent, to close at $19.50 Tuesday on the Nasdaq Stock Market. The shares are up more than 11 percent in the past year.