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)

Core Insights - Lifetime Brands, Inc. reported consolidated net sales of $131.9 million for the second quarter of 2025, a decrease of $9.8 million or 6.9% compared to the same period in 2024 [4][10] - The company maintained a gross margin of 38.6%, reflecting effective pricing strategies and supply chain management [3][5] - A significant non-cash goodwill impairment charge of $33.2 million was recorded, leading to a net loss of $39.7 million for the quarter [6][8] Financial Performance - Consolidated net sales for the six months ended June 30, 2025, were $271.9 million, down $12.0 million or 4.2% from $283.9 million in the same period in 2024 [10] - Adjusted EBITDA for the trailing twelve months ended June 30, 2025, was $50.7 million [15] - Selling, general and administrative expenses decreased by $8.9 million or 11.4% to $69.0 million for the six months ended June 30, 2025 [11] Operational Highlights - The company reported a loss from operations of $(36.1) million for the six months ended June 30, 2025, compared to income from operations of $3.0 million in the same period in 2024 [12][14] - The liquidity position as of June 30, 2025, was $96.9 million, consisting of $12.0 million in cash and cash equivalents and $65.7 million available under the ABL Agreement [16] - The company declared a quarterly dividend of $0.0425 per share, payable on November 14, 2025 [17] Market Context - The company faced macroeconomic pressures and tariff-related headwinds, yet it remains optimistic about long-term growth prospects [3] - The gross margin for the six months ended June 30, 2025, was 37.3%, down from 39.5% in the same period in 2024 [11] - The company’s goodwill balance has been reduced to zero, which is expected to lead to a more consistent alignment between GAAP accounting earnings and non-GAAP adjusted earnings in the future [6][13]

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]

Core Insights - Lifetime Brands, Inc. is participating in the Oppenheimer 25th Annual Consumer Growth and E-Commerce Conference from June 9-11, 2025 [1] - The CEO Robert Kay and CFO Laurence Winoker will host a fireside chat on June 10, 2025, at 1:30pm ET [2] - Management will be available for one-on-one investor meetings during the conference [3] Company Overview - Lifetime Brands is a leading global designer, developer, and marketer of a wide range of branded consumer products for the home [4] - The company markets products under well-known kitchenware brands such as Farberware, KitchenAid, and Sabatier, as well as tableware and giftware brands like Mikasa and Pfaltzgraff [4] - Lifetime Brands also provides exclusive private label products to major retailers worldwide [4]

Part I [Financial Information](index=5&type=section&id=Part%20I.%20Financial%20Information) This section provides a comprehensive overview of the company's financial performance, condition, and cash flows [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) The company reported an improved net loss of $4.2 million in Q1 2025, with total assets decreasing and operating cash flow increasing [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $594.6 million as of March 31, 2025, primarily due to reduced accounts receivable Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 (unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $340,605 | $373,568 | | **Total Assets** | $594,593 | $634,310 | | **Total Current Liabilities** | $124,183 | $151,743 | | **Total Liabilities** | $368,917 | $404,387 | | **Total Stockholders' Equity** | $225,676 | $229,923 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 net loss improved to $4.2 million from $6.3 million in Q1 2024, despite slightly lower net sales Q1 2025 vs. Q1 2024 Statement of Operations (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net sales | $140,085 | $142,242 | | Gross margin | $50,637 | $57,547 | | Income from operations | $1,099 | $1,830 | | Net Loss | $(4,201) | $(6,260) | | Diluted Loss per Share | $(0.19) | $(0.29) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased to $16.7 million in Q1 2025, leading to a $7.4 million increase in cash and equivalents Q1 2025 vs. Q1 2024 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $16,711 | $10,513 | | Net Cash Used in Investing Activities | $(1,573) | $(600) | | Net Cash Used in Financing Activities | $(7,767) | $(21,399) | | **Increase (Decrease) in Cash** | **$7,446** | **$(11,550)** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, revenue disaggregation, $63.2 million ABL availability, and a $6.4 million legal settlement gain Net Sales by Segment (in thousands) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | U.S. segment | $128,510 | $130,480 | | International segment | $11,575 | $11,762 | | **Total net sales** | **$140,085** | **$142,242** | - The company recognized a net legal settlement gain of **$6.4 million** in Q1 2025, which consisted of a **$7.0 million** settlement less **$0.6 million** in legal fees[133](index=133&type=chunk) - As of March 31, 2025, the company was in compliance with its debt covenants, with ABL Agreement availability limited to **$63.2 million** by the Term Loan's maximum Total Net Leverage Ratio covenant, despite a total availability of **$99.7 million**[79](index=79&type=chunk)[86](index=86&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=31&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A discusses 1.5% net sales decrease, gross margin contraction, improved net loss, new tariffs, and distribution center relocation [Recent Developments](index=32&type=section&id=Recent%20Developments) New 145% tariffs on Chinese imports and east coast distribution facility relocation are key recent developments - As of April 9, 2025, the U.S. imposed an aggregate **145%** tariff on imports from China, which is expected to materially impact the company's supply chain and cost structure[153](index=153&type=chunk) - The company is relocating its east coast distribution facility to Hagerstown, Maryland, expecting to incur up to **$7.0 million** in exit costs, **$10.0 million** in capital expenditures, and **$7.0 million** in one-time relocation costs, offset by **$13.1 million** in tax abatements and incentives[154](index=154&type=chunk)[155](index=155&type=chunk)[156](index=156&type=chunk) [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Q1 2025 net sales decreased 1.5%, gross margin contracted, and SG&A fell due to a $6.4 million legal settlement gain Key Operational Metrics (% of Net Sales) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Gross margin | 36.1% | 40.5% | | Distribution expenses | 12.9% | 11.4% | | SG&A expenses | 22.4% | 27.8% | | Income from operations | 0.8% | 1.3% | - U.S. segment sales decreased by **1.5%**, driven by a **4.8%** decline in the Kitchenware category, partially offset by a **7.0%** increase in the Tableware category[164](index=164&type=chunk)[165](index=165&type=chunk)[166](index=166&type=chunk) - Unallocated corporate income was **$2.2 million** in Q1 2025, compared to an expense of **$4.5 million** in Q1 2024, primarily driven by a **$6.4 million** net legal settlement gain[178](index=178&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) Total liquidity was $89.6 million as of March 31, 2025, with Adjusted EBITDA at $51.0 million for the trailing twelve months Liquidity Position as of March 31, 2025 (in millions) | Source | Amount | | :--- | :--- | | Cash and cash equivalents | $10.4 | | ABL Agreement availability (covenant limited) | $63.2 | | Receivables Purchase Agreement availability | $16.0 | | **Total Liquidity** | **$89.6** | Reconciliation to Adjusted EBITDA (Trailing Twelve Months Ended Mar 31, 2025, in thousands) | Metric | Amount | | :--- | :--- | | Net loss as reported | $(13,106) | | Adjustments (Interest, Taxes, D&A, etc.) | $64,069 | | **Adjusted EBITDA** | **$50,963** | - The company has a **$20.0 million** stock repurchase program with **$11.1 million** remaining available as of March 31, 2025, with no shares repurchased during the quarter[217](index=217&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk exposures since the 2024 Annual Report on Form 10-K disclosures - There were no material changes in market risk for changes in foreign currency exchange rates and interest rates from the information provided in the 2024 Annual Report on Form 10-K[218](index=218&type=chunk) [Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) CEO and CFO concluded disclosure controls were effective, with no material changes to internal controls during the quarter - The CEO and CFO concluded that as of March 31, 2025, the company's disclosure controls and procedures were effective[219](index=219&type=chunk) - No material changes were made to the company's internal controls over financial reporting during the most recent fiscal quarter[220](index=220&type=chunk) Part II [Other Information](index=41&type=section&id=Part%20II.%20Other%20Information) This section covers legal proceedings, risk factors, equity sales, and other disclosures not included in Part I [Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 12 for details on legal proceedings, including an EPA matter and a settled case - For a description of legal proceedings, the report refers to NOTE 12 — CONTINGENCIES in the financial statements[221](index=221&type=chunk) [Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) New U.S. international trade policy tariffs on Chinese imports pose a material risk to the business - A key risk factor is the uncertainty of international trade agreements, particularly new tariffs on goods imported from China, which are expected to have a material impact on the business[223](index=223&type=chunk) - The company is taking mitigating actions, such as adjusting pricing, product configurations, and inventory management, but warns these may not fully offset the negative impact of the tariffs[225](index=225&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No public share repurchases, but 80,247 shares acquired from employees at $5.18 to cover tax liabilities Issuer Purchases of Equity Securities (March 1 - March 31, 2025) | Period | Total Shares Purchased | Average Price Paid per Share ($) | Shares Purchased as Part of Public Program | Max Value Remaining for Repurchase ($) | | :--- | :--- | :--- | :--- | :--- | | Mar 1 - Mar 31, 2025 | 80,247 | $5.18 | — | $11,140,752 | [Other Information](index=42&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated Rule 10b5-1 trading arrangements during Q1 2025 - No directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement during the fiscal quarter ended March 31, 2025[227](index=227&type=chunk) [Exhibits](index=43&type=section&id=Item%206.%20Exhibits) This section indexes all exhibits filed with the Form 10-Q, including CEO/CFO certifications and key agreements - The Exhibit Index lists all documents filed with the report, including required CEO/CFO certifications, a lease agreement dated January 23, 2025, and an amendment to the Shares Subscription Agreement with Grupo Vasconia[229](index=229&type=chunk)

Financial Data and Key Metrics Changes - The net loss for the first quarter of 2025 was $4.2 million or $0.19 per diluted share, compared to a loss of $6.3 million or $0.29 per diluted share in the first quarter of 2024 [21] - Adjusted net loss was $5.3 million for Q1 2025 or $0.25 per diluted share, compared to $3.2 million or $0.15 per diluted share in 2024 [21] - Consolidated sales declined by 1.5% to $140.1 million, with US segment sales also decreasing by 1.5% to $128.5 million [22] - Gross margin decreased to 36.1% from 40.5%, driven by customer and product mix [23] Business Line Data and Key Metrics Changes - The major product line decreases were in kitchenware, largely offset by increases in tableware and home solution products, particularly in warehouse clubs, e-commerce, and the dollar channel [22] - In food service, revenue growth was noted despite delays in product launches and capital projects [14] - International segment sales were approximately flat year over year, with operating results improving due to implemented actions [15] Market Data and Key Metrics Changes - The mass retail channel experienced a pronounced decline, while e-commerce, the dollar channel, and club sales showed strong gains [6] - The Asia Pacific region saw an increase, offset by a small decrease from UK national accounts [22] Company Strategy and Development Direction - The company is transitioning to a geographically distributed sourcing and manufacturing model to mitigate risks from US trade policy changes, aiming to relocate 80% of manufacturing out of China by the end of 2025 [10][11] - Cost management measures have been tightened, with over $10 million in annual costs identified for elimination [17] - The company is actively pursuing M&A opportunities but is being conservative in its approach due to the current environment [18] Management's Comments on Operating Environment and Future Outlook - The management highlighted ongoing economic headwinds and a volatile tariff policy impacting pricing, promotions, and product planning [7] - The company is well-positioned to absorb near-term pressures and aims to emerge stronger when economic trends stabilize [19] - No formal guidance for the full year 2025 was issued due to a lack of visibility in the current environment [20] Other Important Information - The company has a strong balance sheet with liquidity of approximately $90 million at quarter-end [28] - Adjusted EBITDA for the trailing twelve months ended March 31, 2025, was $51 million [22] Q&A Session Summary Question: Can you provide additional numbers regarding the sales decline at mass retail and the sales increase in e-commerce and other channels? - The swing was approximately $15 million [32] Question: Can you give an update on the Dolly Parton program? - Shipments occurred as expected, and the program remains strong with anticipated year-over-year growth [34] Question: What is the magnitude of the planned price increases? - The bulk of the increases is between 6-16%, with the impact on volume currently unknown [36] Question: Why was the decision made not to provide guidance? - The main reason is the lack of visibility in the current environment, making it difficult to provide accurate guidance [44] Question: Why hasn't the transition out of China been completed already? - The company has been ramping up production in other geographies and is actively shipping from multiple locations [48] Question: How does the company expect demand to react to significant price increases? - Historically, the company has seen relatively little impact on demand from price increases, particularly in essential product categories [49] Question: What message would the company convey to shareholders regarding stock performance? - The company believes there is a significant intrinsic value gap and is focused on realizing this value in the stock price [52]