Lifetime Brands(LCUT) - 2025 Q4 - Annual Report

Sales and Revenue - Walmart accounted for 17%, 19%, and 21% of consolidated net sales for the years ended December 31, 2025, 2024, and 2023, respectively[41] - Sales to Amazon represented 12%, 13%, and 11% of consolidated net sales for the years ended December 31, 2025, 2024, and 2023, respectively[41] - The Company’s net sales for the third and fourth quarters accounted for 58% of total annual net sales in 2025[59] - For the year ended December 31, 2025, approximately 8% of the Company's net sales revenue was in foreign currencies, compared to 7% for the year ended December 31, 2024[277] Operations and Facilities - The Company operates distribution facilities totaling approximately 1,855,600 square feet across various locations, including Rialto, California (703,000 sq ft) and Robbinsville, New Jersey (700,000 sq ft)[42] - The Company has a presence in international markets through subsidiaries in the U.K., Europe, China, and the Asia Pacific region[33][34] - The Company actively sources products from a diverse global network, including countries such as China, Vietnam, and India[47] Supply Chain and Sourcing - The Company sources almost all of its products from suppliers located outside the United States, primarily in China[35] - The Company’s reliance on international suppliers exposes it to various risks, including political and economic instability[21] Financial Position and Debt - The Company has substantial indebtedness, which may impact its financial position and cash flows[19] - As of December 31, 2025, approximately $139.1 million of the Company's debt carries a variable rate of interest, an increase from $110.2 million at December 31, 2024[280] - A hypothetical 10% change in exchange rates would result in an increase of approximately $2.0 million in SG&A expenses[277] - The Company has foreign exchange contracts with an aggregate gross notional value of $8.0 million as of December 31, 2024, which was zero by December 31, 2025[278] - The Company entered into interest rate swap agreements with an aggregate notional value of $50.0 million to manage interest rate exposure[279] Product Categories - The Company’s product categories include Kitchenware, Tableware, and Home Solutions, targeting moderately priced consumer products[30][31] Human Resources - The Company had approximately 1,080 full-time employees as of December 31, 2025, with 58% located in the United States and Puerto Rico[52] - The Company’s executives and key employees are critical to its success, and their loss could adversely affect the business[28] Intellectual Property - The Company holds approximately 1,060 design and utility patents, which it believes will not materially affect its segments upon expiration[50] Regulatory Compliance - The Company’s spice filling operation is regulated by the U.S. Food and Drug Administration[56]