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Lifetime Brands sees profit decrease despite growth

Jeffrey Siegel, chief executive of Garden-City based Lifetime

Jeffrey Siegel, chief executive of Garden-City based Lifetime Brands Inc. Compensation, as reported $3,132,413. Photo Credit: Danny Ghitis, 2010

Garden City-based Lifetime Brands Inc.’s fourth-quarter and 2011 annual profits decreased from last year, despite “solid, profitable growth” of the company’s kitchenware and tabletop businesses, the company said.

Lifetime Brands’ fourth quarter net income fell to $5.4 million or 43 cents per share from $13.9 million or $1.07 per share in the fourth quarter of 2010. Net sales for the fourth quarter decreased 3.5 percent from the same period a year ago to $137.6 million.

Income for the year was $14.1 million or $1.12 per share compared to $20.3 million or $1.64 per share for 2010. Net sales for the year saw an increase of 0.3 percent, rising to $444.4 million compared to $443.2 million in 2010.

“Our U.S. wholesale kitchenware and tabletop businesses, which together account for approximately 80 percent of the company’s consolidated net sales, achieved solid, profitable growth,” said Jeffrey Siegel, Lifetime Brands’ chief executive officer. “As overall consumer demand in these categories in the U.S. remained flat throughout the year, these increases came primarily from new product introductions and market share gains.”

Demand for non-essential products, especially home decor, declined last year, as low- and middle-income consumers had little discretionary money to spend after necessities like food, clothing and gasoline, Siegel also noted.

Expenses from two acquisitions totaling $2 million, most of which fell in the fourth quarter, affected financial results in that quarter as well as for the full year, the company said. In November, Lifetime Brands acquired Creative Tops Holdings Limited, a UK supplier of private label and branded tableware and kitchenware products. In December, the company acquired a 40 percent equity interest in GS International SA, a wholesale distributor of branded housewares products in Brazil. 
 

Pictured above: Jeffrey Siegel, chief executive of Garden-City based Lifetime Brands Inc. 


 

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