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Lifetime Brands sales dip, but loss narrows

Lifetime Brands chairman and chief executive Jeffrey Siegel

Lifetime Brands chairman and chief executive Jeffrey Siegel in December 2010 at the company's Garden City showroom. Photo Credit: Danny Ghitis

Garden City-based Lifetime Brands Inc. Tuesday reported slightly lower net sales and a narrower loss for the second quarter ended June 30.

The global provider of branded kitchenware, tableware and other products, including Farberware and KitchenAid, posted net sales of $118.1 million for the quarter compared to $120.9 million during the same quarter last year.

“Lifetime’s business is heavily weighted to the second half of the year,” Jeffrey Siegel, Lifetime’s chairman and chief executive, said in a statement. “Our results for this quarter generally were in line with our expectations. Consolidated net sales decreased modestly, reflecting the timing of shipments.”

Lifetime Brands’ net loss for the second quarter shrank to $1.2 million from $1.7 million during the year-earlier period. The company reported adjusted net income of $0.1 million, or 1 cent per diluted share, for the quarter, compared with an adjusted loss of $0.6 million — 4 cents per diluted share — in the corresponding period in 2015. The adjusted figure excludes acquisition-related expenses, restructuring expenses and investments.

The company has been restructuring to decrease its selling, general and administrative expenses, realign its operating structure and improve operating efficiency, Siegel said. The results are expected to show starting next year.

This year, the company expects any effects of the Brexit referendum to be modest on its U.K. subsidiaries, Creative Tops and Kitchen Craft, whose net sales represent about 19 percent of Lifetime’s sales. Brexit refers to the British vote to leave the European Union.

“Longer term, a prolonged decline in the value of the British pound would increase the cost of imports into the U.K. and could negatively affect the translation of financial results into U.S. dollars,” Siegel said.

Shares of Lifetime Brands fell 63 cents, or 4.51 percent, to close Tuesday at $13.34 on the Nasdaq Stock Market. They are down more than 10 percent in the past 12 months.

CORRECTION: The adjusted net income figure is corrected. It was incorrect in previous versions of this story.

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