Lifetime Brands Q3 Income Up, Sales Down
By Staff -- Gifts & Decorative Accessories, 11/5/2009 8:50:00 AM
Garden City, NY – Kitchenware, tabletop and home decor vendor Lifetime Brands Inc., owner of brands such
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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