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Lifetime in the Red, Barely

By Staff -- Gifts and Dec, 11/7/2008 11:19:00 AM

Garden City, NY — Kitchenware, tabletop and home decor vendor Lifetime Brands Inc. saw net sales drop slightly in the third quarter, to $140.6 million, compared to $143.5 million for the same period in 2007. Including $17 million in sales due to the company’s June acquisition of Mikasa, net sales for the company's wholesale segment increased slightly to $124.3 million, from $123.2 million for the prior-year period. Net sales for the direct-to-consumer segment were $16.4 million for the third quarter, compared to $20.3 million for the 2007 period, due to the closing of 30 outlet retail stores in the first quarter. Comparable store sales declined 5 percent.

The company reported a net loss of $0.7 million, or $0.06 per diluted share, compared to net income of $6.8 million, or $0.47 per diluted share, for the third quarter of 2007. These results included a mostly non-cash charge of $4.6 million related to the closing of its remaining 53 outlet retail stores. Excluding this charge, Lifetime’s net income would have been $2.3 million, or $0.19 per diluted share.

Jeffrey Siegel, chairman, president and CEO, said in a statement, "Our acquisition of Mikasa has turned out to be every bit as beneficial as we expected […] organic sales held up relatively well, with the shortfall in the third quarter primarily reflecting reduced sales to Canadian customers, who are now serviced through our Canadian strategic alliance, plus lower sales to certain retailers that are liquidating or in financial trouble, such as Linens 'N Things, which historically accounted for approximately 3 percent of Lifetime's sales. In 2009, we expect most, if not all, of these sales to be absorbed by other retailers.”

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