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Lifetime Brands says net income up, but net sales dip

The Trap Door Colander is one of the

The Trap Door Colander is one of the many products invented and developed by Lifetime Brands Inc. in Garden City. Credit: Nancy Borowick

Garden City-based Lifetime Brands Inc. reported higher net income despite a decline in net sales for the last three months of 2015.

The global maker of kitchenware, tableware and other products, including Farberware and KitchenAid, saw net income rise to $11 million, or 77 cents per diluted share, in the quarter that ended Dec. 31, the company reported Friday. A year earlier, net income was $9.3 million, or 66 cents per diluted share.

Consolidated net sales fell to $185.9 million for the last quarter of 2015, a year-over-year decline of 2 percent, or $4.1 million.

Lifetime’s stock price closed up more than 2 percent, at $12.81.

The company’s net sales in the U.S. wholesale market grew 3.9 percent, but the gains were offset by the weakness of the British pound relative to the dollar, Jeffrey Siegel, Lifetime’s chairman and chief executive, said in a statement.

The company has hired a consulting firm to review its U.S. wholesale business “to ensure that we have the right structure to grow and thrive in today’s complex business environment,” and to “right size” its expense base, Siegel said.

Lifetime has received “overwhelmingly positive” response to its new products, Siegel said.

However, he said, “we are mindful of the risks posed by the possibility of some weakness in the U.S. retail sector, continued foreign exchange challenges and economic uncertainty in some key international markets. Consequently, at this point in the year, we expect low- to mid-single digit overall sales growth for 2016.”

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