GARDEN CITY, N.Y., Oct. 08, 2025 (GLOBE NEWSWIRE) -- Lifetime Brands, Inc. (NasdaqGS: LCUT) (“Lifetime” or the “Company”), a leading global designer, developer and marketer of a broad range of branded consumer products used in the home, today announced its participation in the LD Micro Main Event XIX Investor Conference, to be held on October 19-21, 2025 at the Hotel del Coronado in San Diego, CA. Lifetime’s Chief Executive Officer Robert Kay will be accompanied by Scott Rabinowitz, Senior VP of Finance, an ...

Summary of Lifetime Brands Conference Call (September 25, 2025) Company Overview - **Company**: Lifetime Brands (NasdaqGS: LCUT) - **Industry**: Consumer Goods, specifically in product development and design Key Points Mergers and Acquisitions Strategy - The company is focusing on acquiring businesses in adjacent markets, such as pet products, leveraging its strong product development capabilities [2][3] - Acquisitions are seen as financially accretive, allowing the company to utilize its existing distribution infrastructure for cost savings [4][6] Distribution and Operational Efficiency - Lifetime Brands has a unique distribution system that allows for cost-effective servicing of major clients like Walmart without needing to expand its sales force [5][6] - The company is restructuring its distribution centers to improve efficiency, moving from New Jersey to Maryland to take advantage of lower costs and state incentives of $18 million [13][38] International Operations and Project Concord - The company has faced challenges in its UK operations, which accounted for 90% of its international revenue, leading to a restructuring initiative called Project Concord aimed at achieving breakeven [10][11] - The company is shifting its manufacturing strategy, moving production out of China to Southeast Asia while still maintaining some operations in China due to cost advantages [21][23] Supply Chain and Tariffs - The company acknowledges the decoupling of China and the West, impacting its supply chain strategy, but still finds China advantageous for certain products due to its established infrastructure [19][22] - The company plans to have 80% of its supply chain out of China by the end of the year, while still moving some operations back into China [23][24] Financial Performance and Capital Allocation - Lifetime Brands has a strong cash flow generation capability, even during economic downturns, and maintains a focus on dividends and capital allocation for M&A [25][29] - The company aims to keep its leverage below three, having achieved a low of 2.4 in 2021, and continues to generate predictable cash flow [33] Growth Opportunities - The company is exploring new product innovations and has successfully launched products in the Dollar General channel, projecting a $40 million opportunity [41][42] - New product lines, such as the Build A Board, have shown strong market performance and are being expanded internationally [45] Market Positioning - Lifetime Brands positions itself defensively in a disruptive market, anticipating growth as market conditions improve [39] - The company is committed to innovation and expanding its product offerings across various categories [44] Additional Insights - The company has a strong focus on maintaining operational efficiency and cost management in response to rising industrial real estate costs [13] - The management emphasizes the importance of adapting to market changes and consumer preferences to sustain growth [40][46]

[Part I. Financial Information](index=5&type=section&id=Part%20I.%20Financial%20Information) This section provides the unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, comprehensive loss, stockholders' equity, and cash flows, along with detailed notes explaining the basis of presentation, accounting policies, and specific financial items for the periods ended June 30, 2025 and December 31, 2024 [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's financial position, including assets, liabilities, and equity, at specific points in time Table: Condensed Consolidated Balance Sheets Summary | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Cash and cash equivalents | $12,045 | $2,929 | | Accounts receivable, net | $89,554 | $156,743 | | Inventory | $218,208 | $202,408 | | Total Current Assets | $336,981 | $373,568 | | Total Assets | $551,877 | $634,310 | | Total Current Liabilities | $126,926 | $151,743 | | Revolving Credit Facility | $37,683 | $42,693 | | Term Loan | $128,456 | $130,949 | | Total Stockholders' Equity | $185,768 | $229,923 | - **Total assets** decreased by **$82.4 million** from December 31, **2024**, to June 30, **2025**, primarily due to a significant reduction in accounts receivable and intangible assets[11](index=11&type=chunk) - **Total stockholders' equity** decreased by **$44.1 million**, largely driven by an accumulated deficit increase[11](index=11&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section details the company's revenues, expenses, and net loss over specific periods Table: Condensed Consolidated Statements of Operations Summary | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net sales | $131,862 | $141,666 | $271,947 | $283,908 |\n| Gross margin | $50,839 | $54,550 | $101,476 | $112,097 |\n| (Loss) income from operations | $(37,207) | $1,167 | $(36,108) | $2,997 |\n| Net loss | $(39,699) | $(18,167) | $(43,900) | $(24,427) |\n| Basic loss per common share | $(1.83) | $(0.85) | $(2.03) | $(1.14) |\n| Diluted loss per common share | $(1.83) | $(0.85) | $(2.03) | $(1.14) | - The company reported a significant **net loss** of **$39.7 million** for the three months ended June 30, **2025**, compared to **$18.2 million** in the prior year, primarily due to a **$33.2 million** **goodwill impairment** charge[13](index=13&type=chunk) - **Net sales** decreased by **6.9%** for the three months and **4.2%** for the six months ended June 30, **2025**, compared to the respective prior periods[13](index=13&type=chunk) [Condensed Consolidated Statements of Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) This section presents the company's net loss and other comprehensive income/loss, leading to total comprehensive loss Table: Condensed Consolidated Statements of Comprehensive Loss Summary | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | $(39,699) | $(18,167) | $(43,900) | $(24,427) |\n| Other comprehensive (loss) income, net of taxes | $(262) | $14,239 | $30 | $14,493 |\n| Comprehensive loss | $(39,961) | $(3,928) | $(43,870) | $(9,934) | - **Comprehensive loss** significantly increased to **$39.96 million** for the three months ended June 30, **2025**, from **$3.93 million** in the prior year, mainly due to the higher **net loss** and a shift from other comprehensive income to loss[16](index=16&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) This section outlines changes in the company's equity, including common stock and accumulated deficit Table: Condensed Consolidated Statements of Stockholders' Equity Summary | Metric (in thousands) | December 31, 2024 | June 30, 2025 | | :-------------------- | :---------------- | :------------ | | Total Stockholders' Equity | $229,923 | $185,768 |\n| Accumulated deficit | $(32,550) | $(78,426) |\n| Common stock shares outstanding | 22,155,735 | 22,657,435 | - **Total stockholders' equity** decreased by **$44.155 million** from December 31, **2024**, to June 30, **2025**, primarily due to **net losses** and dividend payments[19](index=19&type=chunk) - The **accumulated deficit** increased significantly from **$(32.550) million** at December 31, **2024**, to **$(78.426) million** at June 30, **2025**[19](index=19&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section reports the cash generated and used by operating, investing, and financing activities Table: Condensed Consolidated Statements of Cash Flows Summary | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $26,057 | $20,930 |\n| Net cash used in investing activities | $(2,746) | $(1,098) |\n| Net cash used in financing activities | $(14,363) | $(32,546) |\n| Increase (decrease) in cash and cash equivalents | $9,116 | $(12,793) |\n| Cash and cash equivalents at end of period | $12,045 | $3,396 | - **Net cash provided by operating activities** increased to **$26.06 million** for the six months ended June 30, **2025**, from **$20.93 million** in the prior year, driven by a **net legal settlement gain** and improved accounts receivable collection[21](index=21&type=chunk)[246](index=246&type=chunk) - **Cash and cash equivalents** at the end of the period increased to **$12.05 million** from **$3.40 million** year-over-year[21](index=21&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements [NOTE 1 — Basis of Presentation and Summary of Accounting Policies](index=10&type=section&id=NOTE%201%20%E2%80%94%20BASIS%20OF%20PRESENTATION%20AND%20SUMMARY%20OF%20ACCOUNTING%20POLICIES) This note describes the basis of financial statement presentation and significant accounting policies - The Company designs, sources, and sells branded kitchenware, tableware, and other home products, marketing them under owned or licensed brands and private labels[24](index=24&type=chunk) - The business is seasonal, with a majority of sales (**57-58%**) occurring in the third and fourth quarters, leading to increased inventory levels from June to October[27](index=27&type=chunk) - A **$33.2 million** non-cash **goodwill impairment** charge was recognized in Q2 **2025** for the U.S. reporting unit due to a sustained decline in market valuation and revised downward near-term forecasts impacted by U.S. tariff policies[45](index=45&type=chunk)[46](index=46&type=chunk) - New accounting pronouncements, ASU **2023-09** (Income Taxes) and ASU **2024-03** (Expense Disaggregation), are being evaluated for their impact on financial statements, with effective dates in **2024** and **2026**, respectively[57](index=57&type=chunk)[59](index=59&type=chunk)[60](index=60&type=chunk) [NOTE 2 — Revenue](index=14&type=section&id=NOTE%202%20%E2%80%94REVENUE) This note details the company's revenue recognition policies and disaggregated revenue by segment and product category - **Revenue** is primarily recognized at the point of shipment (FOB Shipping Point) when the customer obtains control of the products[61](index=61&type=chunk) Table: NOTE 2 — Revenue Summary | Segment/Category | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :----------------- | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------ | :------------------------------------------ | | **Net Sales** | | | | |\n| U.S. segment | $119,315 | $130,503 | $247,825 | $260,983 |\n| International segment | $12,547 | $11,163 | $24,122 | $22,925 |\n| **Total net sales** | **$131,862** | **$141,666** | **$271,947** | **$283,908** |\n| | | | | |\n| **U.S. Product Categories** | | | | |\n| Kitchenware | $82,549 | $80,787 | $162,070 | $164,317 |\n| Tableware | $21,323 | $26,341 | $48,900 | $52,100 |\n| Home Solutions | $15,443 | $23,375 | $36,855 | $44,566 |\n| | | | | |\n| **Geographic Region** | | | | |\n| United States | $115,046 | $123,695 | $239,251 | $249,829 |\n| United Kingdom | $7,233 | $7,150 | $14,187 | $14,616 |\n| Rest of World | $9,583 | $10,821 | $18,509 | $19,463 | - For the three months ended June 30, **2025**, **U.S. segment net sales** decreased by **8.6%**, while **International segment net sales** increased by **12.5%** (**6.6%** in constant currency)[65](index=65&type=chunk)[175](index=175&type=chunk)[179](index=179&type=chunk) [NOTE 3 — Leases](index=15&type=section&id=NOTE%203%20%E2%80%94%20LEASES) This note provides information on the company's lease arrangements and related expenses Table: NOTE 3 — Leases Summary | Lease Expense (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Fixed lease expense | $4,318 | $4,265 | $8,576 | $8,528 |\n| Variable lease expense | $1,812 | $1,650 | $3,565 | $3,018 |\n| **Total lease expense** | **$6,130** | **$5,915** | **$12,141** | **$11,546** | - The Company entered into a new lease agreement for a distribution center in Hagerstown, Maryland, with a term of **180 months** starting Q1 **2026**, including **$7.2 million** in rent abatement and **$5.1 million** in tenant improvement allowance[69](index=69&type=chunk) - **Operating cash flows** for operating leases were **$9.71 million** for the six months ended June 30, **2025**, up from **$9.49 million** in the prior year[67](index=67&type=chunk) [NOTE 4 — Investment](index=16&type=section&id=NOTE%204%20%E2%80%94INVESTMENT) This note describes the company's investment in Grupo Vasconia S.A.B. and related accounting treatment - The Company holds a **24.7%** interest in Grupo Vasconia S.A.B., a Mexican housewares company[70](index=70&type=chunk) - In Q2 **2024**, the Company lost significant influence over Vasconia due to bankruptcy proceedings, discontinuing the equity method and reclassifying accumulated other comprehensive losses, resulting in a **$14.2 million** non-cash loss on equity securities[70](index=70&type=chunk)[192](index=192&type=chunk)[213](index=213&type=chunk) - The fair value of the Vasconia investment was not material as of June 30, **2025**, and was measured using the income approach based on Level **3** unobservable inputs[70](index=70&type=chunk)[71](index=71&type=chunk) [NOTE 5 — Intangible Assets](index=17&type=section&id=NOTE%205%20%E2%80%94%20INTANGIBLE%20ASSETS) This note details the company's intangible assets, including goodwill, and any impairment charges Table: NOTE 5 — Intangible Assets Summary | Intangible Asset (in thousands) | June 30, 2025 Net | December 31, 2024 Net | | :------------------------------ | :---------------- | :-------------------- | | Goodwill | $0 | $33,237 |\n| Licenses | $3,053 | $3,281 |\n| Trade names | $72,591 | $75,840 |\n| Customer relationships | $64,733 | $69,652 |\n| Other | $1,280 | $1,517 |\n| **Total** | **$141,657** | **$183,527** | - A **$33.2 million** non-cash **goodwill impairment** charge was recognized in Q2 **2025** for the U.S. reporting unit, fully reducing its goodwill carrying value to zero, due to declining market valuation and revised forecasts impacted by U.S. tariff policies[75](index=75&type=chunk)[76](index=76&type=chunk) - The impairment test was performed using discounted cash flow and market multiple methods, classified as Level **3** fair value measurement[76](index=76&type=chunk) [NOTE 6 — Debt](index=17&type=section&id=NOTE%206%20%E2%80%94%20DEBT) This note provides information on the company's debt facilities, including revolving credit and term loans - The Company has a **$200.0 million** senior secured asset-based revolving credit facility (**ABL Agreement**) and a **$150.0 million** **Term Loan**, both maturing on August 26, **2027**[77](index=77&type=chunk)[78](index=78&type=chunk) Table: NOTE 6 — Debt Summary | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total availability under ABL Agreement | $110,867 | $124,808 |\n| ABL availability limited by Term Loan covenant | $65,700 | N/A |\n| Current portion of Term Loan | $4,952 | $4,891 |\n| Non-current portion of Term Loan | $128,456 | $130,949 | - **Interest rates** at June 30, **2025**, were between **3.30%** and **5.79%** for the **ABL Agreement** and **9.93%** for the **Term Loan**[88](index=88&type=chunk)[89](index=89&type=chunk) - The Company was in compliance with all debt covenants at June 30, **2025**, including a Total Net Leverage Ratio not exceeding **5.00** to **1.00**[90](index=90&type=chunk)[91](index=91&type=chunk) [NOTE 7 — Derivatives](index=19&type=section&id=NOTE%207%20%E2%80%94%20DERIVATIVES) This note describes the company's use of interest rate swaps and foreign exchange contracts to manage market risks - The Company uses interest rate swaps to manage exposure to interest rate movements and foreign exchange contracts to reduce volatility from currency exchange rates on inventory purchases[92](index=92&type=chunk)[96](index=96&type=chunk)[98](index=98&type=chunk) - **Total outstanding notional value** of interest rate swaps was **$50.0 million** at June 30, **2025**, and the **aggregate gross notional value** of foreign exchange contracts was **$6.1 million**[97](index=97&type=chunk)[98](index=98&type=chunk) Table: NOTE 7 — Derivatives Summary | Derivative Type | Balance Sheet Location | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------- | :--------------------- | :--------------------------- | :------------------------------- | | Foreign exchange contracts (hedging) | Accrued expenses | $385 | $0 |\n| Foreign exchange contracts (hedging) | Prepaid expenses and other current assets | $0 | $256 |\n| Interest rate swaps (non-hedging) | Other long-term liabilities | $430 | $154 |\n| Interest rate swaps (non-hedging) | Other assets | $10 | $379 | - **Mark to market loss** on non-designated interest rate derivatives was **$0.2 million** for the three months and **$0.7 million** for the six months ended June 30, **2025**[103](index=103&type=chunk)[191](index=191&type=chunk)[211](index=211&type=chunk) [NOTE 8 — Stock Compensation](index=21&type=section&id=NOTE%208%20%E2%80%94%20STOCK%20COMPENSATION) This note details the company's stock-based compensation plans and related expenses Table: NOTE 8 — Stock Compensation Summary | Stock Compensation Expense (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Equity based stock option expense | $64 | $60 | $134 | $110 |\n| Restricted and performance-based stock awards expense | $980 | $984 | $1,973 | $1,733 |\n| Liability based stock option expense | $0 | $(7) | $(1) | $1 |\n| **Total Stock Compensation Expense** | **$1,044** | **$1,037** | **$2,106** | **$1,844** | - As of June 30, **2025**, there were **827,000** stock options outstanding, **889,153** non-vested restricted shares, and **732,172** non-vested performance-based awards (target shares)[105](index=105&type=chunk)[108](index=108&type=chunk)[110](index=110&type=chunk) - **Total unrecognized compensation expense** remaining for restricted and performance-based awards was **$4.776 million** and **$2.606 million**, respectively, as of June 30, **2025**[108](index=108&type=chunk)[110](index=110&type=chunk) [NOTE 9 — Loss Per Common Share](index=23&type=section&id=NOTE%209%20%E2%80%94LOSS%20PER%20COMMON%20SHARE) This note presents the calculation of basic and diluted loss per common share Table: NOTE 9 — Loss Per Common Share Summary | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss – Basic and Diluted (in thousands) | $(39,699) | $(18,167) | $(43,900) | $(24,427) |\n| Weighted-average shares outstanding – Basic (in thousands) | 21,686 | 21,421 | 21,639 | 21,399 |\n| Basic loss per common share | $(1.83) | $(0.85) | $(2.03) | $(1.14) |\n| Diluted loss per common share | $(1.83) | $(0.85) | $(2.03) | $(1.14) | - **Basic and diluted loss per common share** increased significantly to **$(1.83)** for the three months and **$(2.03)** for the six months ended June 30, **2025**, compared to the prior year periods, reflecting the higher **net losses**[115](index=115&type=chunk) - Anti-dilutive securities, totaling **1.583 million** for the three months and **1.500 million** for the six months ended June 30, **2025**, were excluded from diluted EPS calculation[115](index=115&type=chunk) [NOTE 10 — Income Taxes](index=24&type=section&id=NOTE%2010%E2%80%94%20INCOME%20TAXES) This note provides information on the company's income tax benefit/provision and effective tax rates Table: NOTE 10 — Income Taxes Summary | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Income tax benefit (provision) (in thousands) | $2,782 | $57 | $2,924 | $(153) |\n| Effective income tax benefit (provision) rate | 6.5% | 0.3% | 6.2% | (0.7)% | - The **effective tax rate** for Q2 **2025** was **6.5%** (benefit), differing from the **21.0%** federal statutory rate primarily due to a partial valuation allowance on U.S. deferred tax assets resulting from **goodwill impairment**[117](index=117&type=chunk) - The recently enacted One Big Beautiful Bill Act (OBBBA) in the U.S., which includes tax reform provisions, is currently being evaluated for its impact on the Company's financial statements[120](index=120&type=chunk) [NOTE 11 – Business Segments](index=25&type=section&id=NOTE%2011%20%E2%80%93%20BUSINESS%20SEGMENTS) This note presents financial information disaggregated by the company's operating segments - The Company operates in two reportable segments: U.S. (domestic design, marketing, and distribution) and International (sales and distribution primarily in the U.K., EU, and Asia Pacific)[123](index=123&type=chunk) Table: NOTE 11 – Business Segments Summary | Segment Performance (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | **Net Sales:** | | | | |\n| U.S. | $119,315 | $130,503 | $247,825 | $260,983 |\n| International | $12,547 | $11,163 | $24,122 | $22,925 |\n| **Gross Margin:** | | | | |\n| U.S. | $46,769 | $50,478 | $93,333 | $103,761 |\n| International | $4,070 | $4,072 | $8,143 | $8,336 |\n| **(Loss) income from operations:** | | | | |\n| U.S. | $(29,620) | $9,189 | $(27,722) | $18,631 |\n| International | $(3,328) | $(2,932) | $(6,280) | $(6,021) |\n| Unallocated corporate expenses | $(4,259) | $(5,090) | $(2,106) | $(9,613) | - **U.S. segment operating income** shifted to a **loss** of **$29.62 million** in Q2 **2025** from an income of **$9.19 million** in Q2 **2024**, largely due to the **goodwill impairment** charge[126](index=126&type=chunk) - Unallocated corporate expenses decreased significantly for the six months ended June 30, **2025**, to **$2.11 million** from **$9.61 million**, primarily due to a **$6.4 million** **net legal settlement gain**[126](index=126&type=chunk)[208](index=208&type=chunk) [NOTE 12 — Contingencies](index=28&type=section&id=NOTE%2012%20%E2%80%94%20CONTINGENCIES) This note describes the company's legal proceedings and other contingent liabilities - The Company's subsidiary, WSPR, is involved in the Wallace EPA Matter concerning groundwater contamination in Puerto Rico, with a **reserved liability** of **$5.4 million** as of June 30, **2025**, for remedial design and action[133](index=133&type=chunk)[141](index=141&type=chunk) - A **net legal settlement gain** of **$6.4 million** was recognized in Q1 **2025** from a **2015** legal action related to a prior acquisition, which consisted of a **$7.0 million** settlement less **$0.6 million** in legal fees[142](index=142&type=chunk) [NOTE 13 — Other](index=30&type=section&id=NOTE%2013%20%E2%80%94%20OTHER) This note includes information on dividends, stock repurchase programs, and supplemental cash flow data Table: NOTE 13 — Other Summary | Dividend per share | Date declared | Date of record | Payment date | | :----------------- | :------------ | :------------- | :----------- | | $0.0425 | 3/11/2025 | 5/1/2025 | 5/15/2025 |\n| $0.0425 | 6/18/2025 | 8/1/2025 | 8/15/2025 | - The Company paid **$1.9 million** in dividends during the six months ended June 30, **2025**[146](index=146&type=chunk) - The Board authorized a **$20.0 million** stock repurchase program on March 14, **2022**, with **$11.1 million** remaining available as of June 30, **2025**; no shares were repurchased in the first six months of **2025**[148](index=148&type=chunk)[249](index=249&type=chunk) Table: NOTE 13 — Other Summary | Supplemental Cash Flow (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :----------------------------- | :----------------------------- | | Cash paid for interest | $8,922 | $9,853 |\n| Cash paid for taxes, net of refunds | $2,980 | $4,193 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial condition and results of operations, including an overview of the business, recent developments, segment performance, and liquidity. It highlights key financial trends, the impact of tariffs, and strategic initiatives [Forward-Looking Statements](index=32&type=section&id=Forward-Looking%20Statements) This section highlights the inherent risks and uncertainties associated with forward-looking statements in the report - The report contains forward-looking statements subject to risks and uncertainties, including macroeconomic conditions, supply chain costs, tariffs, indebtedness, market competition, and geopolitical conditions[152](index=152&type=chunk)[153](index=153&type=chunk)[156](index=156&type=chunk) [About the Company](index=33&type=section&id=About%20the%20Company) This section provides an overview of the company's business, product categories, brands, and growth strategy - The Company designs, sources, and sells branded kitchenware, tableware, and other home products across three categories: Kitchenware, Tableware, and Home Solutions[159](index=159&type=chunk) - Key brands include Farberware, KitchenAid, Mikasa, Taylor, Pfaltzgraff, Built NY, S'well, Fred & Friends, KitchenCraft, Rabbit, Kamenstein, and Dolly[160](index=160&type=chunk) - Growth strategy focuses on expanding product offerings, developing existing brands, acquiring new brands, and establishing new product categories, supported by in-house design and development[160](index=160&type=chunk) [Recent Developments](index=33&type=section&id=Recent%20Developments) This section outlines recent significant events impacting the company, including tariffs, facility relocation, and strategic initiatives - New U.S. tariffs on imports from China (**145%** initially, reduced to **30%**) and universal/reciprocal tariffs are impacting the Company's supply chain and cost structure, leading to mitigation efforts like price negotiations and import diversification[161](index=161&type=chunk)[162](index=162&type=chunk) - The Company is relocating its east coast distribution facility to Hagerstown, Maryland, incurring up to **$7.0 million** in one-time exit costs (**2025-2026**) and **$7.0 million** in relocation costs (**2026**), but expects **$13.1 million** in tax abatements and incentives[163](index=163&type=chunk)[164](index=164&type=chunk)[165](index=165&type=chunk) - Project Concord, launched in January **2025**, aims to propel growth and streamline the International segment's cost structure, including a workforce reorganization in July **2025** with estimated severance expenses of **$0.3 million**[166](index=166&type=chunk) - The One Big Beautiful Bill Act (OBBBA), enacted in July **2025**, introduces tax reform provisions that the Company is currently evaluating for financial statement impact[167](index=167&type=chunk) [Business Segments](index=34&type=section&id=Business%20Segments) This section describes the company's operational structure across its U.S. and International business segments - The Company operates in two reportable segments: U.S. (domestic business) and International (U.K., European Union, and Asia Pacific)[168](index=168&type=chunk) [Seasonality](index=34&type=section&id=Seasonality) This section explains the seasonal nature of the company's business operations and its impact on sales and inventory - The Company's business is seasonal, with most sales occurring in the third and fourth quarters (**58%** and **57%** of total annual **net sales** in **2024** and **2023**, respectively)[170](index=170&type=chunk) - Inventory levels typically increase from June through October in anticipation of the pre-holiday shipping season[170](index=170&type=chunk) [Critical Accounting Estimates](index=34&type=section&id=Critical%20Accounting%20Estimates) This section confirms no material changes to the company's critical accounting estimates since the last annual report - There have been no material changes to the Company's critical accounting estimates discussed in the **2024** Annual Report on Form **10-K**[172](index=172&type=chunk) [Results of Operations](index=35&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance over specific periods, highlighting key drivers and changes [Three Months Ended June 30, 2025 Compared to the Three Months Ended June 30, 2024](index=36&type=section&id=THREE%20MONTHS%20ENDED%20JUNE%2030%2C%202025%20COMPARED%20TO%20THE%20THREE%20MONTHS%20ENDED%20JUNE%2030%2C%202024) This section compares the company's financial results for the three-month periods ended June 30, 2025 and 2024 Table: Three Months Ended June 30, 2025 Compared to the Three Months Ended June 30, 2024 Summary | Metric (in thousands) | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :-------------------- | :------ | :------ | :--------- | :--------- | | Consolidated Net Sales | $131,862 | $141,666 | $(9,804) | (6.9)% |\n| U.S. Segment Net Sales | $119,315 | $130,503 | $(11,188) | (8.6)% |\n| International Segment Net Sales | $12,547 | $11,163 | $1,384 | 12.5)% |\n| Consolidated Gross Margin | $50,839 | $54,550 | $(3,711) | (6.8)% |\n| Distribution Expenses | $17,314 | $15,052 | $2,262 | 15.0)% |\n| Selling, General and Administrative Expenses | $37,495 | $38,331 | $(836) | (2.2)% |\n| Goodwill Impairment | $33,237 | $0 | $33,237 | N/A |\n| Interest Expense | $5,054 | $5,157 | $(103) | (2.0)% |\n| Mark to Market Loss on Interest Rate Derivatives | $220 | $82 | $138 | 168.3)% |\n| Loss on Equity Securities | $0 | $14,152 | $(14,152) | (100.0)% |\n| Income Tax Benefit | $2,782 | $57 | $2,725 | 4780.7)% | - **U.S. Kitchenware sales** increased by **2.1%**, while **Tableware and Home Solutions sales** decreased by **19.0%** and **33.8%** respectively, for the three months ended June 30, **2025**[176](index=176&type=chunk)[177](index=177&type=chunk)[178](index=178&type=chunk) - **Consolidated gross margin percentage** remained stable at **38.6%** in Q2 **2025** compared to **38.5%** in Q2 **2024**, with U.S. segment **gross margin** percentage improving due to customer mix[180](index=180&type=chunk) - **Distribution expenses** as a percentage of **net sales** increased to **13.1%** from **10.6%** due to lower shipment volume, higher fixed expenses, new warehouse management system software costs, and increased freight-out expenses[182](index=182&type=chunk)[183](index=183&type=chunk) [Six Months Ended June 30, 2025 Compared to the Six Months Ended June 30, 2024](index=39&type=section&id=SIX%20MONTHS%20ENDED%20JUNE%2030%2C%202025%20COMPARED%20TO%20THE%20SIX%20MONTHS%20ENDED%20JUNE%2030%2C%202024) This section compares the company's financial results for the six-month periods ended June 30, 2025 and 2024 Table: Six Months Ended June 30, 2025 Compared to the Six Months Ended June 30, 2024 Summary | Metric (in thousands) | H1 2025 | H1 2024 | Change ($) | Change (%) | | :-------------------- | :------ | :------ | :--------- | :--------- | | Consolidated Net Sales | $271,947 | $283,908 | $(11,961) | (4.2)% |\n| U.S. Segment Net Sales | $247,825 | $260,983 | $(13,158) | (5.1)% |\n| International Segment Net Sales | $24,122 | $22,925 | $1,197 | 5.2)% |\n| Consolidated Gross Margin | $101,476 | $112,097 | $(10,621) | (9.5)% |\n| Distribution Expenses | $35,384 | $31,233 | $4,151 | 13.3)% |\n| Selling, General and Administrative Expenses | $68,963 | $77,867 | $(8,904) | (11.4)% |\n| Goodwill Impairment | $33,237 | $0 | $33,237 | N/A |\n| Interest Expense | $9,969 | $10,771 | $(802) | (7.4)% |\n| Mark to Market Loss on Interest Rate Derivatives | $747 | $256 | $491 | 191.8)% |\n| Loss on Equity Securities | $0 | $14,152 | $(14,152) | (100.0)% |\n| Income Tax Benefit (Provision) | $2,924 | $(153) | $3,077 | N/A |\n| Equity in Losses, net of taxes | $0 | $2,092 | $(2,092) | (100.0)% | - **U.S. Kitchenware sales** decreased by **1.4%**, Tableware by **6.1%**, and Home Solutions by **17.3%** for the six months ended June 30, **2025**[196](index=196&type=chunk)[197](index=197&type=chunk)[198](index=198&type=chunk) - **Consolidated gross margin percentage** decreased to **37.3%** in H1 **2025** from **39.5%** in H1 **2024**, primarily due to unfavorable customer and product mix in both U.S. and International segments[200](index=200&type=chunk)[201](index=201&type=chunk) - **Selling, general and administrative expenses** decreased by **11.4%** for the six months ended June 30, **2025**, largely due to a **$6.4 million** **legal settlement gain** and lower incentive compensation[205](index=205&type=chunk)[208](index=208&type=chunk) [Liquidity and Capital Resources](index=43&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) This section discusses the company's ability to generate and manage cash, including its working capital and debt facilities Table: Liquidity and Capital Resources Summary | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Cash and cash equivalents | $12,045 | $2,929 |\n| Working capital | $210,100 | $221,800 |\n| Total liquidity | $96,900 | N/A |\n| ABL availability limited by Term Loan covenant | $65,700 | N/A |\n| Available for sale accounts receivable | $19,200 | N/A | - **Inventory turnover** slowed to **1.5 times (241 days)** for the three months ended June 30, **2025**, from **1.8 times (208 days)** in the prior year, due to lower sales and higher inventory purchases to mitigate tariff impacts[218](index=218&type=chunk) - **Adjusted EBITDA** for the trailing twelve months ended June 30, **2025**, was **$50.7 million**[233](index=233&type=chunk) - **Net cash provided by operating activities** increased to **$26.1 million** for the six months ended June 30, **2025**, from **$20.9 million** in the prior year, driven by a **legal settlement gain** and improved accounts receivable collection[246](index=246&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section addresses the company's exposure to market risks, particularly foreign currency and interest rate fluctuations - No material changes in market risk for foreign currency exchange rates and interest rates from the **2024** Annual Report on Form **10-K**[250](index=250&type=chunk) [Item 4. Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures) This section reports on the effectiveness of the company's disclosure controls and internal controls over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of June 30, **2025**[251](index=251&type=chunk) - There were no material changes in the Company's internal controls over financial reporting during the most recent fiscal quarter[252](index=252&type=chunk) [Part II. Other Information](index=49&type=section&id=Part%20II.%20Other%20Information) This section covers legal proceedings, risk factors, other information, and exhibits [Item 1. Legal Proceedings](index=49&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to detailed disclosures regarding the company's legal and environmental contingencies - Legal proceedings are described in detail in NOTE **12** — CONTINGENCIES of the financial statements[253](index=253&type=chunk) [Item 1A. Risk Factors](index=49&type=section&id=Item%201A.%20Risk%20Factors) This section updates and highlights significant risks, especially those related to international trade and tariffs - The Company faces significant risks from uncertainty regarding international trade agreements and U.S. trade policies, especially new tariffs on imports from China[255](index=255&type=chunk) - New tariffs are expected to materially impact the business, market share, revenue, and **gross margins**, requiring mitigation actions that may not fully offset the impact[255](index=255&type=chunk)[256](index=256&type=chunk)[257](index=257&type=chunk) [Item 5. Other Information](index=50&type=section&id=Item%205.%20Other%20Information) This section reports on Rule 10b5-1 trading arrangements by directors and officers - No directors or officers adopted, modified, or terminated Rule **10b5-1** trading arrangements during the fiscal quarter ended June 30, **2025**[258](index=258&type=chunk) [Item 6. Exhibits](index=51&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the quarterly report, including certifications and XBRL data - The report includes certifications by the CEO and CFO (Exhibits **31.1**, **31.2**, **32.1**) and Inline XBRL documents (Exhibits **101.INS**, **101.SCH**, **101.DEF**, **101.CAL**, **101.LAB**, **101.PRE**, **104**)[261](index=261&type=chunk) [Signatures](index=52&type=section&id=Signatures) This section contains the official signatures of the company's authorized officers for the report submission - The report is signed by Robert B. Kay, Chief Executive Officer and Director, and Laurence Winoker, Executive Vice President, Treasurer and Chief Financial Officer, on August 7, **2025**[263](index=263&type=chunk)

Financial Data and Key Metrics Changes - The company reported a net loss of $39.7 million or $1.83 per diluted share for Q2 2025, compared to a net loss of $18.2 million or $0.85 per diluted share in Q2 2024, which included a noncash goodwill impairment charge of $33.2 million related to the U.S. segment [14][15] - Adjusted net loss for Q2 2025 was $10.9 million or $0.50 per diluted share, compared to $600,000 or $0.03 per diluted share in Q2 2024 [15][17] - Consolidated sales declined by 6.9% to $131.9 million, with U.S. segment sales decreasing by 8.6% to $119.3 million, while international segment sales increased by 12.4% to $12.6 million [18] Business Line Data and Key Metrics Changes - Major product line decreases were noted in home solutions and tableware, partially offset by increases in kitchenware driven by higher sales for cutlery and board products [18] - Adjusted EBITDA for the trailing twelve months ended June 30, 2025, was $50.7 million, indicating stable performance despite top-line declines [17][9] Market Data and Key Metrics Changes - International segment sales increased by 12.4% to $12.6 million, with a 6.6% increase when excluding foreign exchange fluctuations, predominantly in the UK and Continental Europe [18] - The U.S. segment gross margin increased to 39.1% from 38.7%, driven by a favorable product mix, while international gross margin decreased to 32.5% due to an unfavorable customer product mix [19] Company Strategy and Development Direction - The company is focused on mitigating tariff-related uncertainties by shifting manufacturing outside of China and diversifying sourcing across Southeast Asia [5][11] - The company is actively evaluating several attractive M&A opportunities due to increased unsolicited interest from industry players [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the second quarter faced significant challenges due to macroeconomic headwinds and tariff-related disruptions, but expressed confidence in a stronger second half as pricing resets and shipments resume [12][13] - The company views the revenue impact from Q2 as not indicative of the rest of the year, expecting more normalized demand from retail customers [13] Other Important Information - Cash flow from operations exceeded $25 million year-to-date, with liquidity remaining strong at over $90 million [9] - The company has reduced net debt by $18 million year-to-date, with an adjusted EBITDA to net debt ratio of 3.5 times, an improvement from 3.6 times in March [22] Q&A Session Summary Question: Details on pricing versus unit volumes in Q2 - Management indicated that price increases were implemented uniformly across all channels, but these did not impact the second quarter [26][27] Question: Update on Dolly Parton products at Dollar General - Management noted that shipments to Dollar General were delayed due to tariffs, but the program continues to perform well and discussions for additional brands are ongoing [28][29] Question: Operating income or loss in the international segment and Project Concord update - Management acknowledged a write-off of some inventory impacting the international bottom line, with financial impacts expected to flow through in Q3 [30][31] Question: Reasons for increased distribution expenses - Management explained that increased distribution expenses were due to shipment delays and transitioning to a new warehouse management system [33][34] Question: Quantifying sales lost due to shipment stoppages - Management estimated over $30 million in sales were impacted, with some delays carrying over into the second half of the year [39][40] Question: Difficulty in providing guidance - Management cited a lack of clear visibility in the market and uncertainty regarding the impact of pricing increases on consumer behavior [41][42] Question: Timing of pricing hitting the shelves - Management expects pricing increases to start hitting shelves in Q3, with some products being more price-sensitive than others [46][47]

Financial Performance - Lifetime Brands reported a quarterly loss of $0.5 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.17, marking an earnings surprise of -194.12% [1] - The company posted revenues of $131.86 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 4.05% and down from $141.67 million year-over-year [2] - Over the last four quarters, Lifetime Brands has surpassed consensus EPS estimates only once [2] Stock Performance - Shares of Lifetime Brands have declined approximately 29.3% since the beginning of the year, contrasting with the S&P 500's gain of 7.9% [3] - The current Zacks Rank for Lifetime Brands is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.17 on revenues of $177.77 million, and for the current fiscal year, it is $0.14 on revenues of $664.88 million [7] - The trend of estimate revisions for Lifetime Brands was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Consumer Products - Discretionary industry, to which Lifetime Brands belongs, is currently ranked in the top 28% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

[Second Quarter 2025 Earnings Overview](index=1&type=section&id=second_quarter_2025_earnings_overview) Lifetime Brands, Inc. reported a decrease in Q2 2025 net sales, with management highlighting resilience and strong liquidity despite macroeconomic challenges [Executive Summary](index=1&type=section&id=executive_summary) Lifetime Brands, Inc. reported consolidated net sales of $131.9 million for the second quarter of 2025, a 6.9% decrease year-over-year, achieving a TTM Adjusted EBITDA of $50.7 million and maintaining a strong liquidity position - Consolidated net sales for Q2 2025 were **$131.9 million**[1](index=1&type=chunk) - Trailing twelve months (TTM) Adjusted EBITDA was **$50.7 million**[1](index=1&type=chunk) - The company maintains a **strong liquidity position**[1](index=1&type=chunk) [CEO Commentary](index=1&type=section&id=ceo_commentary) CEO Rob Kay highlighted the company's resilience despite macroeconomic pressures and tariff headwinds, noting a steady gross margin of 38.6% and reduced SG&A expenses, expressing confidence in strong liquidity for managing volatility and building long-term growth - Gross margin held steady at **38.6%** due to strong execution in pricing strategy and supply chain management[2](index=2&type=chunk) - Selling, general and administrative (SG&A) expenses were **reduced**, improving cost efficiency[2](index=2&type=chunk) - The company is well-equipped to manage near-term volatility and build a foundation for sustainable long-term growth, backed by a **strong liquidity position**[2](index=2&type=chunk) [Financial Performance Highlights](index=1&type=section&id=financial_performance_highlights) The company experienced decreased net sales for Q2 and six months 2025, stable gross margin, and a significant goodwill impairment charge, while maintaining a strong liquidity position [Second Quarter 2025 Financial Highlights](index=1&type=section&id=second_quarter_2025_financial_highlights) Q2 2025 consolidated net sales decreased by 6.9% to $131.9 million, with a stable gross margin but a significant operating loss due to a $33.2 million goodwill impairment Second Quarter Financial Performance (YoY) | Metric | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :--------------------------------- | :---------- | :---------- | :----------- | :----------- | | Consolidated Net Sales | $131.9M | $141.7M | $(9.8)M | (6.9)% | | Gross Margin | $50.8M (38.6%) | $54.6M (38.5%) | $(3.8)M | 0.1 ppt | | SG&A Expenses | $37.5M | $38.3M | $(0.8)M | (2.1)% | | Loss (Income) from Operations | $(37.2)M | $1.2M | $(38.4)M | N/A | | Adjusted Income from Operations | $0.9M | $5.6M | $(4.7)M | (83.9)% | | Net Loss | $(39.7)M | $(18.2)M | $(21.5)M | (118.1)% | | Diluted EPS | $(1.83) | $(0.85) | $(0.98) | (115.3)% | | Adjusted Net Loss | $(10.9)M | $(0.6)M | $(10.3)M | (1716.7)% | | Adjusted Diluted EPS | $(0.50) | $(0.03) | $(0.47) | (1566.7)% | - Loss from operations for Q2 2025 includes a non-cash goodwill impairment charge of **$33.2 million** related to the U.S. segment, reducing the goodwill balance to **zero**[5](index=5&type=chunk)[6](index=6&type=chunk) [Six Months Ended June 30, 2025 Financial Highlights](index=2&type=section&id=six_months_ended_june_30_2025_financial_highlights) For the six months ended June 30, 2025, consolidated net sales decreased by 4.2% to $271.9 million, gross margin declined, and the period saw a loss from operations of $(36.1) million, including a $33.2 million goodwill impairment charge Six Months Financial Performance (YoY) | Metric | 6M 2025 | 6M 2024 | Change ($) | Change (%) | | :--------------------------------- | :---------- | :---------- | :----------- | :----------- | | Consolidated Net Sales | $271.9M | $283.9M | $(12.0)M | (4.2)% | | Gross Margin | $101.5M (37.3%) | $112.1M (39.5%) | $(10.6)M | (2.2) ppt | | SG&A Expenses | $69.0M | $77.9M | $(8.9)M | (11.4)% | | Loss (Income) from Operations | $(36.1)M | $3.0M | $(39.1)M | N/A | | Adjusted Income from Operations | $0M | $11.3M | $(11.3)M | (100)% | | Net Loss | $(43.9)M | $(24.4)M | $(19.5)M | (79.9)% | | Diluted EPS | $(2.03) | $(1.14) | $(0.89) | (78.1)% | | Adjusted Net Loss | $(16.2)M | $(3.8)M | $(12.4)M | (326.3)% | | Adjusted Diluted EPS | $(0.75) | $(0.18) | $(0.57) | (316.7)% | - Selling, general and administrative expenses for the current period include a net legal settlement gain of **$6.4 million**[9](index=9&type=chunk) - Net loss for the prior period (6M 2024) included a non-cash charge of **$14.2 million** due to the Company's loss of significant influence in its equity investment in Grupo Vasconia[11](index=11&type=chunk) [Liquidity Position](index=2&type=section&id=liquidity_position) As of June 30, 2025, Lifetime Brands reported total liquidity of $96.9 million, composed of cash and cash equivalents, availability under the ABL Agreement, and available funding under the Receivables Purchase Agreement Liquidity as of June 30, 2025 | Liquidity Component | Amount | | :-------------------------------- | :------------- | | Cash and cash equivalents | $12.0 million | | Availability under ABL Agreement | $65.7 million | | Available funding under Receivables Purchase Agreement | $19.2 million | | **Total Liquidity** | **$96.9 million** | [Dividend Declaration](index=2&type=section&id=dividend_declaration) The Company's Board of Directors declared a quarterly dividend of $0.0425 per share, payable on November 14, 2025, to stockholders of record on October 31, 2025 - Quarterly dividend declared: **$0.0425 per share**[14](index=14&type=chunk) - Dividend payable on November 14, 2025, to stockholders of record on October 31, 2025[14](index=14&type=chunk) [Non-GAAP Financial Measures and Reconciliations](index=3&type=section&id=non_gaap_financial_measures_and_reconciliations) This section explains the company's non-GAAP financial measures and provides detailed reconciliations for Adjusted EBITDA, net loss, income from operations, and constant currency net sales [Explanation of Non-GAAP Measures](index=3&type=section&id=explanation_of_non_gaap_measures) Lifetime Brands utilizes non-GAAP financial measures, including constant currency net sales, adjusted income (loss) from operations, adjusted net loss, adjusted diluted loss per common share, and adjusted EBITDA, which management uses to evaluate financial results and trends for more accurate period-to-period comparison, but are not intended as substitutes for GAAP measures - Non-GAAP financial measures include **constant currency net sales, adjusted income (loss) from operations, adjusted net loss, adjusted diluted loss per common share, and adjusted EBITDA**[16](index=16&type=chunk) - Management uses these measures to evaluate ongoing financial results and trends, believing they allow for more accurate period-to-period comparison of operating performance[16](index=16&type=chunk) - These non-GAAP measures should be viewed as a supplement to, and not a substitute for, GAAP financial measures[16](index=16&type=chunk) [Adjusted EBITDA Reconciliation (TTM)](index=8&type=section&id=adjusted_ebitda_reconciliation_ttm) For the trailing twelve months ended June 30, 2025, Adjusted EBITDA was $50.7 million, a non-GAAP measure defined in the company's debt agreements that reconciles net income (loss) by excluding specific items Adjusted EBITDA Reconciliation (TTM Ended June 30, 2025) | Metric | TTM Ended June 30, 2025 (in thousands) | | :--------------------------------- | :------------------------------------- | | Net income (loss) as reported | $(34,638) | | Income tax provision (benefit) | $254 | | Interest expense | $21,406 | | Depreciation and amortization | $23,616 | | Mark to market loss (gain) on interest rate derivatives | $957 | | Goodwill impairment | $33,237 | | Stock compensation expense | $4,182 | | Legal settlement gain, net | $(4,578) | | Severance expense | $270 | | Acquisition related expenses | $476 | | Warehouse redesign expenses | $1,050 | | Pro forma adjustments | $4,500 | | **Adjusted EBITDA** | **$50,732** | - Adjusted EBITDA is a non-GAAP financial measure defined in the Company's debt agreements, excluding specific items to reflect operational performance[29](index=29&type=chunk) [Adjusted Net Loss and Diluted EPS Reconciliation](index=9&type=section&id=adjusted_net_loss_and_diluted_eps_reconciliation) Adjusted net loss for Q2 2025 was $(10.9) million, or $(0.50) per diluted share, significantly higher than Q2 2024, with key adjustments for 2025 including a substantial goodwill impairment charge Adjusted Net Loss and Diluted EPS Reconciliation | Metric (in thousands - except per share data) | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :-------------------------------------------- | :---------- | :---------- | :---------- | :---------- | | Net loss as reported | $(39,699) | $(18,167) | $(43,900) | $(24,427) | | Total Adjustments (pre-tax) | $38,143 | $18,631 | $36,855 | $22,696 | | Income tax effect on adjustments | $(9,571) | $(1,102) | $(9,176) | $(2,100) | | **Adjusted net loss** | **$(10,907)** | **$(638)** | **$(16,221)** | **$(3,831)** | | **Adjusted diluted loss per common share** | **$(0.50)** | **$(0.03)** | **$(0.75)** | **$(0.18)** | - Adjustments for 2025 include a **$33.2 million** goodwill impairment, acquisition intangible amortization, legal settlement gain, acquisition-related expenses, warehouse redesign expenses, severance expense, and mark-to-market loss on interest rate derivatives[31](index=31&type=chunk) - Adjusted diluted loss per common share is calculated based on diluted weighted-average shares outstanding, which do not include the effect of dilutive securities for the periods presented[32](index=32&type=chunk) [Adjusted Income from Operations Reconciliation](index=9&type=section&id=adjusted_income_from_operations_reconciliation) Adjusted income from operations for Q2 2025 was $0.9 million, a decrease from $5.6 million in Q2 2024, with the primary adjustment for both periods in 2025 being the $33.2 million goodwill impairment charge Adjusted Income from Operations Reconciliation | Metric (in thousands) | Q2 2025 | Q2 2024 | 6M 2025 | 6M 2024 | | :--------------------------------- | :---------- | :---------- | :---------- | :---------- | | (Loss) income from operations | $(37,207) | $1,167 | $(36,108) | $2,997 | | Total Adjustments | $38,143 | $4,397 | $36,108 | $8,288 | | **Adjusted income from operations** | **$936** | **$5,564** | **$0** | **$11,285** | - The significant goodwill impairment charge of **$33.2 million** was a key adjustment for both the three and six months ended June 30, 2025[33](index=33&type=chunk) [Constant Currency Net Sales Reconciliation](index=10&type=section&id=constant_currency_net_sales_reconciliation) In constant currency, Q2 2025 consolidated net sales decreased by 7.3% ($10.4 million), slightly more than the reported 6.9% decrease, indicating a minor positive currency impact, with a similar trend for the six-month period Constant Currency Net Sales (Three Months Ended June 30) | Metric | Q2 2025 (As Reported) | Q2 2024 (As Reported) | Q2 2024 (Constant Currency) | Change (Excl. Currency) | Change (Incl. Currency) | Currency Impact | | :--------------------------------- | :-------------------- | :-------------------- | :-------------------------- | :---------------------- | :---------------------- | :-------------- | | Total Net Sales | $131,862 | $141,666 | $142,268 | (7.3)% | (6.9)% | 0.4% | | U.S. Net Sales | $119,315 | $130,503 | $130,502 | (8.6)% | (8.6)% | —% | | International Net Sales | $12,547 | $11,163 | $11,766 | 6.6% | 12.4% | 5.8% | Constant Currency Net Sales (Six Months Ended June 30) | Metric | 6M 2025 (As Reported) | 6M 2024 (As Reported) | 6M 2024 (Constant Currency) | Change (Excl. Currency) | Change (Incl. Currency) | Currency Impact | | :--------------------------------- | :-------------------- | :-------------------- | :-------------------------- | :---------------------- | :---------------------- | :-------------- | | Total Net Sales | $271,947 | $283,908 | $284,342 | (4.4)% | (4.2)% | 0.2% | | U.S. Net Sales | $247,825 | $260,983 | $260,921 | (5.0)% | (5.0)% | —% | | International Net Sales | $24,122 | $22,925 | $23,421 | 3.0% | 5.2% | 2.2% | - Constant Currency is determined by applying 2025 average exchange rates to prior year local currency sales amounts to exclude the impact of foreign currency fluctuations[35](index=35&type=chunk) [Additional Information](index=3&type=section&id=additional_information) This section provides important disclosures regarding forward-looking statements, an overview of Lifetime Brands, Inc., and investor relations contact information [Forward-Looking Statements](index=3&type=section&id=forward_looking_statements) The report includes forward-looking statements concerning the company's growth, financial guidance, strategic initiatives, and future performance, which are based on current judgments and assumptions, but actual results may differ materially due to various important factors, and the company disclaims any obligation to update these statements unless legally required - Forward-looking statements cover company growth, financial guidance, ability to navigate the current environment, strategic initiatives, and projected financial and operating performance[17](index=17&type=chunk) - Actual results may differ materially due to factors such as credit agreement compliance, liquidity, seasonality, potential impairments (including goodwill), trade/tax law changes, economic conditions, customer behavior, foreign exchange fluctuations, supply chain costs, and geopolitical conditions[17](index=17&type=chunk) - The Company undertakes no obligation to update these forward-looking statements other than as required by law[17](index=17&type=chunk) [About Lifetime Brands, Inc.](index=3&type=section&id=about_lifetime_brands_inc) Lifetime Brands, Inc. is a leading global designer, developer, and marketer of a wide array of branded consumer products for the home, marketing products under well-known kitchenware, tableware, giftware, and home solutions brands, and also supplying exclusive private label products to major retailers worldwide - Lifetime Brands is a **leading global designer, developer, and marketer** of branded consumer products used in the home[18](index=18&type=chunk) - The company markets products under **well-known kitchenware, tableware/giftware, and home solutions brands**[18](index=18&type=chunk)[19](index=19&type=chunk) - Lifetime Brands also provides exclusive private label products to leading retailers globally[19](index=19&type=chunk) [Investor Relations and Conference Call](index=2&type=section&id=investor_relations_and_conference_call) Details for the Q2 2025 conference call, held on August 7, 2025, are provided, including dial-in numbers and webcast access, along with investor relations contact information for Lifetime Brands, Inc - A conference call was scheduled for Thursday, August 7, 2025, at 11:00 a.m. (Eastern Time)[15](index=15&type=chunk) - A live webcast of the conference call was accessible via a provided link, with an audio replay available on the Company's investor relations website[15](index=15&type=chunk) - Investor relations contacts are Laurence Winoker (CFO) and Shannon Devine (MZ North America)[21](index=21&type=chunk) [Condensed Consolidated Financial Statements](index=5&type=section&id=condensed_consolidated_financial_statements) This section presents the condensed consolidated statements of operations, balance sheets, and cash flows for the periods ended June 30, 2025 [Statements of Operations](index=5&type=section&id=statements_of_operations) The condensed consolidated statements of operations detail the company's financial performance for the three and six months ended June 30, 2025, and 2024, with key figures including net sales, cost of sales, gross margin, operating expenses, and net loss, notably impacted by a $33.2 million goodwill impairment charge in 2025 Condensed Consolidated Statements of Operations (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net sales | $131,862 | $141,666 | $271,947 | $283,908 | | Cost of sales | $81,023 | $87,116 | $170,471 | $171,811 | | Gross margin | $50,839 | $54,550 | $101,476 | $112,097 | | Distribution expenses | $17,314 | $15,052 | $35,384 | $31,233 | | Selling, general and administrative expenses | $37,495 | $38,331 | $68,963 | $77,867 | | Goodwill impairment | $33,237 | — | $33,237 | — | | (Loss) income from operations | $(37,207) | $1,167 | $(36,108) | $2,997 | | Interest expense | $(5,054) | $(5,157) | $(9,969) | $(10,771) | | Loss on equity securities | — | $(14,152) | — | $(14,152) | | NET LOSS | $(39,699) | $(18,167) | $(43,900) | $(24,427) | | DILUTED LOSS PER COMMON SHARE | $(1.83) | $(0.85) | $(2.03) | $(1.14) | [Balance Sheets](index=6&type=section&id=balance_sheets) The condensed consolidated balance sheets provide a snapshot of Lifetime Brands' financial position as of June 30, 2025, and December 31, 2024, showing a significant increase in cash, a decrease in accounts receivable, and a reduction in intangible assets due to goodwill impairment, with overall decreases in total assets and liabilities Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :--------------------------------- | :-------------- | :---------------- | :----------- | :----------- | | Cash and cash equivalents | $12,045 | $2,929 | $9,116 | 311.2% | | Accounts receivable, net | $89,554 | $156,743 | $(67,189) | (42.9)% | | Inventory | $218,208 | $202,408 | $15,800 | 7.8% | | TOTAL CURRENT ASSETS | $336,981 | $373,568 | $(36,587) | (9.8)% | | INTANGIBLE ASSETS, net | $141,657 | $183,527 | $(41,870) | (22.8)% | | TOTAL ASSETS | $551,877 | $634,310 | $(82,433) | (13.0)% | | TOTAL CURRENT LIABILITIES | $126,926 | $151,743 | $(24,817) | (16.3)% | | REVOLVING CREDIT FACILITY | $37,683 | $42,693 | $(5,010) | (11.7)% | | TERM LOAN | $128,456 | $130,949 | $(2,493) | (1.9)% | | TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $551,877 | $634,310 | $(82,433) | (13.0)% | - The goodwill balance was reduced to **zero** as of June 30, 2025, following the **$33.2 million** impairment charge[5](index=5&type=chunk)[10](index=10&type=chunk)[25](index=25&type=chunk) [Statements of Cash Flows](index=7&type=section&id=statements_of_cash_flows) The condensed consolidated statements of cash flows for the six months ended June 30, 2025, show an increase in net cash provided by operating activities to $26.1 million, driven by changes in accounts receivable, while net cash used in investing activities increased and net cash used in financing activities decreased significantly Condensed Consolidated Statements of Cash Flows (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change ($) | Change (%) | | :--------------------------------- | :----------------------------- | :----------------------------- | :----------- | :----------- | | Net cash provided by operating activities | $26,057 | $20,930 | $5,127 | 24.5% | | Net cash used in investing activities | $(2,746) | $(1,098) | $(1,648) | 150.1% | | Net cash used in financing activities | $(14,363) | $(32,546) | $18,183 | (55.9)% | | Cash and cash equivalents at end of period | $12,045 | $3,396 | $8,649 | 254.7% | - Adjustments to reconcile net loss to net cash provided by operating activities for 2025 include a **$33.2 million** goodwill impairment and a **$67.2 million** positive impact from changes in accounts receivable[27](index=27&type=chunk)

Sales of $131.9 million TTM Adjusted EBITDA of $50.7 million Company Maintains Strong Liquidity Position GARDEN CITY, N.Y., Aug. 07, 2025 (GLOBE NEWSWIRE) -- Lifetime Brands, Inc. (NasdaqGS: LCUT), a leading global designer, developer and marketer of a broad range of branded consumer products used in the home, today reported its financial results for the quarter ended June 30, 2025. Rob Kay, Lifetime's Chief Executive Officer, commented, "Despite ongoing macroeconomic pressures and the evolving impact of ta ...

Core Viewpoint - Lifetime Brands, Inc. is set to release its second quarter 2025 financial results on August 7, 2025, before market open, followed by a conference call to discuss the results at 11:00 a.m. Eastern Time [1]. Company Overview - Lifetime Brands, Inc. is a leading global designer, developer, and marketer of a wide range of branded consumer products used in the home, including kitchenware, tableware, and home solutions [4]. - The company markets products under well-known brands such as Farberware, KitchenAid, Mikasa, and S'well, among others, and also provides exclusive private label products to major retailers worldwide [4]. Conference Call Details - Investors and analysts can access the live conference call by dialing 1-844-826-3035 (USA) or 1-412-317-5195 (International) [2]. - A live webcast of the conference call will be available through the investor relations website [2]. - For those unable to attend the live broadcast, an audio replay will be accessible on the investor relations website or via telephone replay [3].

Group 1 - Lifetime Brands, Inc. held its 2025 Annual Meeting of Stockholders on June 18, 2025, where stockholders elected a new board of directors [1] - The elected directors include Jeffrey Siegel as Chairman, Robert B. Kay as CEO, and other notable members from various industries [1] - Stockholders ratified Ernst & Young LLP as the independent registered public accounting firm for the year ending December 31, 2025 [1] Group 2 - Stockholders approved the 2024 compensation for the Company's named executive officers on a non-binding advisory basis [2] - The Board of Directors declared a quarterly cash dividend of $0.0425 per share, payable on August 15, 2025, to stockholders of record by August 1, 2025 [2] Group 3 - Lifetime Brands is a leading global designer, developer, and marketer of a wide range of branded consumer products for the home, including kitchenware, tableware, and home solutions [3] - The Company markets products under well-known brands such as Farberware®, KitchenAid®, and Mikasa®, among others [3]

Summary of Lifetime Brands (LCUT) FY Conference - June 10, 2025 Company Overview - **Company Name**: Lifetime Brands - **Industry**: Consumer Durables - **Founded**: 1945 as a cutlery company - **Market Share**: Over 20% in the cutlery category, primarily through Farberware brands [3][4] - **Average Ticket Price**: $10 and under [2] Core Business Insights - **Product Offering**: Good, better, best strategy across various channels [2] - **Recent Growth**: Merged with Filament Brands in 2018, focusing on growth and profitability [4] - **Key Categories**: Tabletop tools and kitchen tools [4] Consumer Market Analysis - **Current Consumer Health**: Visibility is dim; consumer spending has slowed down due to trade wars and economic uncertainty [8][9] - **Online Shopping Trend**: Increased online purchases driven by consumer wariness [9] - **Retail Environment**: Competitive landscape shows bifurcation; smaller companies are struggling, presenting M&A opportunities [10] Competitive Landscape - **Operational Challenges**: Competitors are facing issues with manufacturing and supply chain adjustments, particularly moving out of China [10] - **Channel Performance**: Strong performance in club channels (e.g., Costco) and mass channels (e.g., Walmart) [11] Inventory and Tariff Management - **Inventory Destocking**: Retailers are adjusting inventory levels due to economic conditions and tariffs [13][15] - **Tariff Impact**: Company has shifted manufacturing out of China to mitigate tariff impacts, with plans to have most products manufactured outside China by the end of the year [19][20] Pricing Strategy - **Price Increases**: Implemented across the customer base; focus on maintaining margin dollars rather than margin percentage [21][22] - **Elasticity of Demand**: Historical data suggests that certain products remain in demand even during economic downturns [23][24] Financial Performance - **Q1 Results**: Softness in sales due to customer and product mix affecting margins; not significantly impacted by tariffs [25][26] International Business and Project Concord - **International Challenges**: UK operations were losing money; restructuring efforts are underway to achieve breakeven by 2025 [27][30] - **Project Concord**: Aimed at integrating UK operations with US business to streamline costs [30][34] Growth Initiatives - **Defensive Posture**: Current focus is on defensive strategies due to macroeconomic uncertainties, but growth initiatives are still in place [31] - **New Product Launches**: Successful launch of the Dolly product line, with plans for expansion [31][32] Distribution Center Relocation - **New Distribution Center**: Moving from New Jersey to Maryland to avoid cost increases; receiving $13 million in subsidies [36][38] Future Guidance and M&A Strategy - **Guidance for FY '25**: Will be provided once there is clarity in trade and tariff situations [39] - **M&A Criteria**: Focus on margin expansion and new product categories; looking for transformative opportunities [40][41]