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Lifetime Brands Q3 Income Up, Sales Down

By Staff -- Gifts and Dec, 11/5/2009 8:50:00 AM

Garden City, NY – Kitchenware, tabletop and home decor vendor Lifetime Brands Inc., owner of brands such Pfalzgraff dinnerware from Lifetime Brands as Pfaltzgraff, Mikasa, Gorham, Towle Silversmiths and more, reported net income for the quarter ended September 30 of $4.9 million, compared to a net loss of $1.1 million in the same period last year. Diluted income per common share was $0.40, compared to a loss of $0.09 per common share in the 2008 quarter.

Net sales for the quarter were $111.4 million, as compared to $140.6 million in 2008. Net wholesale sales were $106.3 million, a decrease of $18 million, compared to $124.3 million in 2008. About half of the decrease reflects the absence of sales to now-defunct retailer Linens 'N Things, the non-recurrence of sales of excess inventory in connection with Lifetime’s purchase of Mikasa, and the discontinuance of low-margin sales to a direct response retailer.

The company’s restructuring efforts reduced selling, general and administrative expenses by $9.4 million, a reduction of 28.9 percent, compared to the same quarter in 2008. Inventory compared to a year ago decreased 25.8 percent. The company also nearly halved its bank borrowings: they stood at $65.3 million on September 30, a reduction of $52.8 million compared to a year ago.

Jeffrey Siegel, Lifetime chairman, CEO and president, said in a statement, "Throughout the year, retailers sharply trimmed inventories, which now are the lowest in memory. This has had a negative effect on sales, as inventory replenishment generally was at rates below those of retail sell-throughs. While it appears that the sell-down of retail inventories has now run its course, I believe retailers will continue carefully to manage their inventories in a conservative manner for the foreseeable future."

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