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]