LCUT

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 11:00 a.m. ET Chief Executive Officer - Robert Kay Chief Financial Officer - Laurence Winoker Operator: Good morning, ladies and gentlemen, and welcome to the Lifetime Brands Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note that this conference today is being recorded. I would now like to turn the conference over to [ Jamie Kirchen]. Mr. [ Kirchen ], you may now go ahead. Unknown Executive: Good morning, and thank you for joining Lifetime Brands Second Quarter 2026 Earnings Call. With us today from management are Rob Kay, Chief Executive Officer; and Laurence Winoker, Chief Financial Officer. Before we begin the call, I'd like to remind you that our remarks this morning may contain forward-looking statements that relate to the future of the company. These statements are intended to qualify for the safe harbor protection from liability established by the Private Securities Litigation Reform Act. Any such statements are not guarantees of future performance and factors that could influence our results are highlighted in our earnings release. Any other factors are contained in our filings with the Securities and Exchange Commission. Such statements are based upon information available to the company as of the date hereof and are subject to change for future developments. Except as required by law, the company does not undertake any obligation to update such statements. Our remarks this morning and in our earnings release also contain non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. Included in such release is a reconciliation of these non-GAAP financial measures with the comparable financial measures calculated in accordance with GAAP. With that introduction, I'd like to turn the call over to Rob Kay. Please go ahead, Rob. Robert Kay: Thank you, and good morning. We are pleased with our performance during the second quarter, which showed year-over-year growth as expected. The increase in gross margin and our bottom line was meaningfully driven by a benefit recognized from IEEPA tariff refunds. Top line growth was notable with net sales up 7.4% to $141.6 million despite some timing delays on a few programs, which shifted revenues from these programs into the third and fourth quarter. The earnings growth we generated includes a benefit for the expected recovery of $40.1 million of tariffs we paid in 2025. Larry is going to walk through the numbers in detail, but I wanted to spend a few minutes upfront on that refund, what it is, how it's accounted for and what we're doing with it and then get into how the underlying business performed. Some of you will remember that on our last call, we were asked about the potential IEEPA tariff refund, and we said at the time that we weren't recognizing anything in our numbers or in our guidance that we had paid $41.7 million and believed we were legally entitled to a refund, but there was still a path to travel, including the possibility of an appeal. That path has now largely played out. We have recorded a benefit of $40.1 million of tariff refunds and to date, have received approximately $36 million in cash. The accounting is straightforward. We paid the tariffs in 2025, and they ran through cost of goods sold. So accordingly, the refund runs through cost of goods sold as well, which is reflected in our results for the second quarter. That's why gross margin was 65.9% this quarter and why you're seeing such strong growth in operating income and EBITDA. I want to be straightforward about what we're doing with that money. First, we'll be paying taxes on it. Second, this income will be used to mitigate inflationary pressures that are being experienced in the economy, and we are seeing flow through to Lifetime. We are also using this cash inflow to restore reductions in the business that we pulled back in 2025 to protect our bottom line against the tariff impact. We've already begun restored spending levels for growth and product investment back since the beginning of 2026. And finally, we're using it to strengthen our balance sheet, particularly through deleveraging. The tariffs meant we were carrying meaningfully more inventory value. We paid duties before we ever sold the goods, and we had to shift production across our supply base to other geographies to manage the exposure. The tariff refund, combined with the cash flow the business is generating organically, lets us pay that borrowing back down. Since the end of the first quarter, we've repaid $40 million of term debt, $20 million in the second quarter and another $20 million in early July, funded by a combination of operating cash flow and the tariff refund. Separately, we're in the process of refinancing our outstanding debt, which includes the company's existing line of credit and its Term Loan B facility. As part of that, we expect to improve the mix and tenor of our debt and expect a reduction in our ongoing annualized interest expense. On the underlying business, we beat last year's second quarter by nearly $10 million in net sales, so it was a relatively easy comparison. A year ago, right after the initial tariff actions, including the 145% rate on China and elevated rates across many other countries, resulted in us largely stopping shipping during that quarter. Against that backdrop, the 2026 second quarter was in line with our expectations. End markets remain soft across the majority of consumer durable categories and some shipments shifted out of the second quarter into the third and fourth, driven both by market conditions and internal challenges related to our new Hagerstown, Maryland distribution center, of which I will elaborate more shortly. Growth was led by our warehouse club programs and e-commerce. Setting the refund aside, gross margin in the underlying business also reflects mix. We added meaningful club channel volume this year that carries a lower margin than our average. And additionally, as we have previously discussed, in the impact of tariffs and our pricing mitigation strategy, this has led to lower gross margin percentages as we focus on maintaining gross margin dollars. Today, we are maintaining our full year net sales guidance as issued at $650 million to $700 million. We're raising our earnings and adjusted EBITDA guidance to reflect the tariff refund, offset by the cost of the additional investments I referenced above, which has also factored in inflationary and other impacts related to increased investment. That's not a change to our organic outlook for the underlying business. We continue to watch the ongoing impact of geopolitical conditions and inflation, including higher ocean freight costs on our end markets for the rest of the year, and we've built a degree of caution into our guidance as a result. On new product, our newly redesigned Farberware kitchen tool line relaunched in the second quarter and early sell-through has been very encouraging. We started this program about a year ago as a refresh to our very popular and successful product line with a redesigned look while holding competitive price points on shelf. We also extended our Dolly Parton license for another three years, a good reflection of how that partnership continues to perform for us. International continues to narrow its losses. Sales were up and year-to-date losses were meaningfully lower than the same period last year, with most of that improvement coming in the second quarter. Project Concord remains on plan. We're implementing the final cost actions now, and we're actively evaluating options around the U.K. facility that could further improve this segment's performance. We remain on track for International to reach breakeven on a pro forma basis in 2026. The Hagerstown DC is online. As we've discussed before, bringing up a facility of this scale comes with start-up costs and operational disruption, and that had a negative impact -- a negative effect on the second quarter as efficiencies started out low and shipments were adversely impacted. We expect a continued though smaller impact in the third quarter as we finish the ramp, and we expect to be fully operational by the fourth quarter. At this point, we believe that our full year guidance as presented, captured these incremental onetime costs. If operational disruptions continue, onetime start-up costs could exceed our previously disclosed estimates. As we have previously announced, we look forward to presenting our longer-term strategy at our Investor Day this December, which we will be providing more details on shortly. So to sum up, a good quarter for the underlying business against a still soft end market backdrop and an exceptional one on a reported basis given the $40.1 million tariff refund. We're using that money to pay the associated taxes, restore reductions we pulled back in 2025 and strengthen our balance sheet, including $40 million of term debt paid down since the end of the first quarter. We're reaffirming our net sales guidance, raising our earnings guidance to reflect the refund and staying focused on the fundamentals, getting Hagerstown to full operation, Project Concord and International's path to breakeven and continued momentum from our core lines, including Farberware and from our licensed portfolio. With that, let me turn it over to Larry to go through the financials in more detail. Laurence Winoker: Thanks, Rob. As we reported this morning, net income for the second quarter of 2026 was $19.6 million or $0.87 per diluted share compared to a net loss of $39.7 million or $1.83 per diluted share in '25. Adjusted net income was $26.6 million for the second quarter of ' 26 or $1.18 per diluted share compared to adjusted net loss of $2.6 million or $0.12 per share in '25. Income from operations was $31.6 million in the second quarter of '26 as compared to a loss from operations of $37.2 million in the '25 period. Income from operations for the current period included a tariff refund of $40.1 million. Loss from operations for the prior period included a non-cash goodwill impairment charge of $33.2 million related to the U.S. segment. Adjusted income from operations for the second quarter of '26 was $41.1 million as compared to $900,000 in the '25 period. The 2026 period include adjustments for acquisition-related intangible amortization expense of $4.3 million, acquisition-related diligence expenses of $1 million, restructuring expenses of $2 million and warehouse relocation and redesign expenses of $2.2 million. The 2025 period also included adjustments for acquisition-related intangible amortization of $4.4 million, the goodwill impairment charge of $33.2 million and certain other adjustments that were approximately $500,000 in the aggregate. Adjusted EBITDA for the trailing 12-month period ended June 30, '26 was $92 million. This adjusted information noted are non-GAAP financial measures, which are reconciled to our GAAP financial measures in the earnings release. Following comments are for the second quarter of '26 and '25 unless stated otherwise. Consolidated sales increased 7.4% to $141.6 million. In the U.S. segment increased by 7.5% to $128.2 million. Sales increased in all product categories driven by warehouse clubs and to a lesser extent, e-commerce. International segment sales increased 6.8% or 5.3% in local currency to $13.4 million. This increase was driven by higher sales in the Asia Pacific region and Continental Europe, partially offset by lower sales in the U.K. Consolidated gross margin increased to 65.9% from 38.6% U.S. segment gross margin increased to 60.3% from 39.1%. The improvement in the gross margin percentage was attributable to a benefit from the tariff refunds of $40.1 million in the current period, partially offset by unfavorable product mix. And international gross margins increased to 42.5% from 32.5%, driven by favorable customer mix. U.S. segment distribution expense as a percentage of goods shipped from its warehouses, excluding non-recurring expenses, was 11.9% versus 11%. The increase was attributable to labor inefficiencies, primarily due to the move of our East Coast distribution operation from New Jersey to Maryland. And non-recurring expenses for the current period were $2.2 million, which related to onetime expenses to start up the Maryland distribution facility, including relocation of inventory, recruiting and training expenses, setup costs and lease expenses for the nonoperational portion of the New Jersey and Maryland facilities. International segment, distribution expenses as a percentage of its -- of its goods shipped from its warehouses improved to 24.2% from 26.8%. The improvement was due to operational efficiencies in the export regions. Selling, general and administrative expenses increased by 5.3% to $39.5 million. In the U.S., increased by $1.7 million to $31.2 million. This increase in expenses was employee related as a percentage of net sales, expenses improved to 24.3% from 24.7%. The decrease as a percentage was attributable to the impact of fixed costs on higher sales volume. International SG&A decreased to $3.3 million from $3.7 million. The decrease was due to lower employee and commission expenses. And as a percentage of net sales, it decreased to 24.6% from 29.4%. This decreased percentage was due to the impact of fixed costs on higher sales volume. And unallocated corporate expenses were $5.1 million compared to $4.3 million. The increase was attributable to due diligence expenses. Restructuring expenses were $2 million in 2026, of which $1.2 million was for employee severance related to exiting the New Jersey distribution facility and $800,000 to close a manufacturing operation in Mexico. Interest expense, excluding mark-to-market adjustments for swaps, decreased by $900,000 due to lower average outstanding borrowings and lower interest rates on outstanding debt. The effective tax rate for 2026 and 2025 were 29.2% and 6.5%, respectively. These rates differed from the federal statutory income tax rate of 21%, primarily due to the impact of nondeductible expenses in '26 and a partial valuation allowance recorded on deferred taxes related to the goodwill impairment in '25. Turning to our balance sheet. It continues to strengthen. Our net debt declined by approximately $10 million for the current quarter and approximately $39 million since year-end '25. At quarter end, our liquidity was approximately $151 million, which includes cash plus availability under our credit facility and receivable purchase agreement. As discussed, the company recorded a benefit of $40.1 million for the IEEPA tariff refunds, of which $36.4 million has been received to date. Our current net debt is approximately $121 million. We are now in the final stage of extending our revolving credit facility and refinancing our term loan, which if consummated, will extend all our debt maturities to 2031. As provided in the release this morning, we updated our financial guidance for the full year '26 as follows: net sales of $650 million to $700 million, adjusted income from operations from $81.5 million to $84 million, adjusted net income of $46 million to $47.5 million and adjusted EBITDA of $90.5 million to $93 million. This concludes our prepared comments. Operator, please open the line for questions. Operator: [Operator Instructions] And today's first question comes from Matt Koranda with ROTH Capital. Matt Koranda: I guess you're raising the EBITDA guide by $37 million at the midpoint. I guess the IEEPA refund was roughly $40 million. Is the delta there, I guess, the reinvestment that you were talking about in the prepared remarks? Or maybe just unpack that for us, if you could. And then it sounds like maybe there's a little bit more left to receive for the rest of the year. Will that be recognized in the P&L? Or maybe just a little bit of help on sort of how it flows through? Robert Kay: Yes. So you got it exactly right. So as we discussed, we've raised our earnings a lot, but we're also using that money to, a, delever, which flows through, but -- and obviously, pay taxes. And then restore investments. For instance, we cut a bunch of expenses. We cut a lot of heads. We're not restoring that, but we also cut compensation levels and salary levels through most of the company. We restored those, and we're making investment in new products that we had curtailed. So that is that delta three main that you point out. And Larry, do you want to answer? Laurence Winoker: Yes. So the $40 million reflects an accrual for what we received in July as well as what we expect to receive. However, we don't know -- I don't think anybody knows when that -- if and when that will be received. But based on analysis, we believe it was appropriate to accrue it. Robert Kay: And as Larry pointed out, we received in cash $36 million as of July. Matt Koranda: Got it. Okay. Yes, that's helpful. All right. So just a couple of million left, I guess, to receive, but it's all been accrued for in the second quarter. Makes sense. On the Hagerstown ramp-up, I guess, is there any way to quantify the impact to the second quarter that you saw, I guess, in terms of the drag on efficiencies? And what's factored into the full year guide? It sounds like you haven't really -- I mean, core guidance hasn't really changed for the full year. So I'm assuming you think you can offset whatever inefficiencies you saw in the second quarter, but just any quantification around the drag it created? And then any fixes that are in place, I guess, that you feel confident about that it will be done by the third quarter? Robert Kay: Yes. So we anticipated you're going to have -- it's a lot of new people, like actually a lot of the senior management is shifting, but there's a lot of new people. So there's training issues, you're building up staff. Our availability of staff and their ability to get people in Hagerstown has been fine. No issues at all. But -- so we had anticipated we had included that in our guidance. So what we've experienced to date, that's why it had no impact in our guidance. And what we are currently anticipating to continue in the third quarter has also been factored in our guidance -- in our initial guidance, right? So no impact there at all. The second quarter had impact in terms of expense. So we had to run like a 1.5 shift is just more people to try to get things through the system. As it ramps up, that will continue as of the end of the second quarter into the third quarter. We are potentially going to see some delay in shipments. We're monitoring that. The ramp-up inefficiencies have to date, mostly been solved. So at this point, we're shipping at a very healthy rate but we need to catch up in a couple of weeks. Once that's done over the next 2 to 3 weeks, providing there's nothing else that becomes an issue, we will be at fully flow through. So not full capability because we're still shifting some of the inventory out of Robbinsville, New Jersey into Hagerstown. And we'll have that mostly done by the beginning of the fourth quarter when the Maryland facility will be fully operational. And by the end of the year, the New Jersey facility will be not operating anymore. Does that answer most of the questions? Matt Koranda: That answered my question. Yes, I think so. Maybe just last one. It sounds like you're kind of circling in on the debt refi given the mention in the prepared remarks. And I know you probably can't give a ton of detail, but just broad brush strokes, curious how we should be thinking about what a new package might look like in terms of increasing capacity for acquisitions, in terms of rates. Just broad brush strokes would be helpful to kind of get your thoughts on how to think about it. Robert Kay: Yes. We'll have more information very shortly and share that. But our concept is to more fully utilize our asset base capability, which is also much lower cost debt. Our total term loan will be much smaller because we don't need it, but we are looking to do it in the private market with someone that should we need availability for an external initiative such as an acquisition, we can add that on, but it wouldn't be something we would add on and deal negative arb looking to use that money. Laurence Winoker: And we're actually past negotiation. I mean we're in the final stage. We may file consummate this as early possibly as tomorrow or the next week. So we know all the terms. We just not -- don't want to cite them until they're... Robert Kay: It's not signed, but it could be signed imminently and you'll see an 8-K very shortly, and we're happy to discuss it once it is. Laurence Winoker: And we'll have capacity to do what we call tuck-in acquisitions. Robert Kay: And again, right, we're sitting today at $150 million of liquidity, right? Operator: And the next question is from Anthony Lebiedzinski with Sidoti & Company. Anthony Lebiedzinski: Certainly nice performance here in the quarter. Just wondering, as far as the sales increase at 7%, the number came in better than what we had expected. And this is despite some timing shifts that you said. So is there any way, Rob, that maybe you could quantify what you think those timing shifts were? And also, if you could speak to pricing versus unit volumes, just broadly speaking, as far as the impact on the revenue number. Robert Kay: Yes, so the 2 factors that shifted -- and by the way, the quarter kind of came in per our expectations. We knew there would be growth as you did as well in your estimates versus prior year. But there were some sizable orders that shifted from our customers' preference into the third quarter a little bit maybe the fourth, but mostly the third. And it was timing. Part of that just merchandising strategy on certain accounts. Part of that is, if you look at retailers, there's some slowness and they wanted to push some new sets out. The other delay that shifted in the second, third quarter was what we were just talking about in the ramp-up of new Hagerstown. So we had when we first started operational on a large-scale basis, really started with receiving goods, which then ended up in terms of shipping goods. And this was really impacting us -- started to impact us in the last month of the quarter. So it shifted out of the second quarter. We expect -- again, we believe our issues there have been addressed. So things will ship. If they were not addressed and they lasted for a period of time, we would lose business, not permanently, but obviously, it wouldn't ship this year and you lose a turn. But the shifting is a result of those factors that I mentioned. Price volume, what I can say, consistent with us as well, we've done, I think, a little better than what we see in the marketplace. But if you just look at the main Circana data, and you look at all of the categories that we're in and consumer durables, in general, the market is relatively flat on a dollar basis. And actually, if you look at particularly our categories and you add them up, they're down in the neighborhood of 2% to 3% on a dollar basis I'm referring to third-party data now the home market. But then if you then drill into those details and look at it on a unit basis, they're down, right? Much more than anywhere from 7.5% to 10%. And we did better than that, but along those lines. Anthony Lebiedzinski: Okay. That's very helpful color. Got you. And then as far as the Dolly Parton product line, good that you were able to extend that relationship certainly. Anything to call out in terms of revenue related to Dolly Parton products in the second quarter? Robert Kay: No, pretty much as expected. There was some Dolly stuff that shifted, particularly some stuff to Dollar General. We are now shipping multiple accounts more in the second half of the year. There was some Dollar General, Dolly Parton stuff that shifted out of the second quarter. But the program continues to go well, continues to do really well on shelf, which is also helping why a bunch of the other retailers are picking it up, some of our other customers. Anthony Lebiedzinski: Got you. Okay. And then just going back to the earlier question about the delta between the tariff refund amount of $40 million and the $37 million increase in adjusted operating income. So thinking about that $3 million, is that going to be mostly SG&A? Or perhaps maybe some other line items to think about? I know you mentioned ocean freight costs being higher as well. But if you could just kind of speak to that as well, that would be very helpful. Robert Kay: Yes. So most of it is just investment, it's restoring some cuts we had done and just investing in product. So I mean, looking at it another way is our earnings and our cash flow greatly increased, and we're redeploying that money into the business for future growth capability, right? As opposed to just pocketing, we're not trying to just pocket it. Obviously, from a balance sheet perspective, in the tariff environment, 2 major things required capital. One is shifting to a geographically dispersed geographic footprint for sourcing. There's a lot of money to do that. But also just the tariffs themselves, paying those tariffs, right? You pay them, they're sitting in your inventory. So you're carrying much higher values. The units didn't change, right? But the value of your inventory, you have to fund that, right? So we helped -- we were able to do that because we have a strong balance sheet. Our public peers as well, but a lot of people that we compete against were not, right, able to do that. But now with this refund, we've replenished that. So that's a big source of use of this cash. Operator: And the next question is from Brian McNamara with Canaccord Genuity. Brian McNamara: So sales are pretty much where they were in 2024, both in Q2 and H1. When do you think this business starts to sustainably grow again? And what are the levers for that growth? Robert Kay: Yes. So I mean, any different quarter, right, there's going to be, as you know, different flows and mixes. So if you look at the full year guidance, right, we think we'll hit those numbers. Obviously, growth in the end market is going to help. We're not factoring that into our guidance. So when there's growth in the end market, when that starts growing, we will benefit from that accordingly, and that will be over and above what we have in the guidance that we've issued. Brian McNamara: What's the annual run rate for sales for Dolly Parton? And how much is that expected to grow this year? And then similar to my previous question, what brands are up today versus 2024? Robert Kay: So KitchenAid has grown. Farberware, a big chunk of Farberware since we relaunched and the POS is really good, but we've also had to take out the existing business and discount that. So there's a lot of noise in those numbers that will be growing, though, in the second half of the year. Dolly Parton, which has grown in the last couple of years, it's not going to grow at the same rate this year. We'll maintain, -- we'll grow a little bit. It's about a $20 million business for us. So it's grown from nothing to about our fifth largest brand. And we've seen meaningful growth this year in [ Mikasa ], which both on the dinnerware and the flatware side, which dropped in '25 and we see nice growth in that in 2026 and will continue. Brian McNamara: Great. That's helpful. And then just one last one for me. Sales guidance remains pretty wide despite having shipments moved out of Q2 into Q3. Is that subtly acknowledging that those shipments might not happen? You mentioned the market environment. And why would that be? Presumably visibility is maybe better this year than you've seen in some time, but correct me if I'm wrong. Robert Kay: Yes. No, visibility is -- well, no one knows what's happening with the end market. And obviously, the war and inflation will impact may have an impact in our business. But yes, visibility is pretty good. And basically, we looked at the year -- no, there's no subtle underlying message that we're going to lose that business. We think it shifts. So we don't think there's an impact. As we mentioned, the guidance, our approach to it was conservative and there's upside to it, but we'd rather be in a position to raise guidance as the year unfolds than to lower. Operator: And this does conclude our question-and-answer session for today. I would like to turn the conference back over to Rob Kay for any closing remarks. Robert Kay: Again, thanks, everyone, for their interest and their time. As we mentioned before, we will have a lengthy Investor Day, which we will host in New York City in the beginning of December, and we will be sending out to the public more information shortly on that. Thank you, and have a good day. Operator: The conference has now concluded. Thank you for attending today's presentation, and you may now disconnect your lines. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was significantly impacted by a $40.1 million IEEPA tariff refund, which was recognized as a benefit to cost of goods sold, driving exceptional reported growth in operating income and EBITDA. Management is utilizing the cash inflow to strengthen the balance sheet through $40 million in debt repayment and to restore growth investments that were curtailed in 2025 to protect margins. Top-line growth of 7.4% was driven by warehouse club programs and e-commerce, though results were tempered by timing delays that shifted some revenue into the second half of the year. The underlying gross margin reflects a strategic shift toward lower-margin club channel volume and a pricing strategy focused on maintaining gross margin dollars rather than percentages. International segment losses narrowed significantly, driven by Project Concord cost actions and improved customer mix, keeping the segment on track for pro forma breakeven in 2026. Operational disruptions at the new Hagerstown distribution center negatively impacted second-quarter efficiencies and shipments, though management expects these to be largely resolved by the fourth quarter. Market conditions remain soft across consumer durable categories, with unit volumes down significantly across the industry, though Lifetime claims to be outperforming broader market trends. Full-year net sales guidance is maintained at $650 million to $700 million, assuming that revenue shifted from the second quarter will be recovered in the third and fourth quarters. Earnings and adjusted EBITDA guidance were raised to reflect the tariff refund, partially offset by the cost of restoring compensation levels and product development investments. Management is in the final stages of a debt refinancing expected to extend maturities to 2031 and reduce annualized interest expense by optimizing the mix of asset-based and private market debt. Guidance incorporates a degree of caution regarding geopolitical conditions, persistent inflation, and higher ocean freight costs that may impact end-market demand. The Hagerstown facility is expected to reach full operational status by the fourth quarter, at which point the legacy New Jersey facility will be completely decommissioned. A $40.1 million benefit was recorded for IEEPA tariff refunds, with approximately $36 million in cash already received as of July. The company incurred $2.2 million in non-recurring startup costs for the Maryland distribution center, including inventory relocation and dual-lease expenses. Restructuring expenses of $2 million were recognized, primarily related to severance for the New Jersey facility exit and the closure of a manufacturing operation in Mexico. Management warned that if operational disruptions at the new distribution center continue, one-time startup costs could exceed previous estimates. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The $3 million difference between the refund and the EBITDA guidance raise represents the restoration of salary levels and new product investments that were cut in 2025. Management clarified that the full $40.1 million refund has been accrued in the second quarter, even though a small portion is still pending physical receipt. Inefficiencies were driven by training a new workforce and running extra shifts to manage the transition from New Jersey. Management believes the primary operational issues have been addressed and expects to catch up on delayed shipments within two to three weeks. The new debt package will focus on lower-cost asset-based lending and a smaller term loan to reduce interest expense. The structure is designed to provide 'tuck-in' acquisition capacity through private market lenders without carrying unnecessary debt on the balance sheet. While the dollar-based market is flat to down 3%, unit volumes in core categories are down 7.5% to 10% industry-wide. The Dolly Parton license, now a $20 million business, was extended for three years and is expanding into more retail accounts despite some timing shifts in the second quarter.

Lifetime Brands, Inc. LCUT used its second-quarter 2026 call to emphasize how a $40.1 million tariff refund is reshaping capital allocation while consumer demand remains soft. The company’s second-quarter adjusted earnings were $1.18 per share versus the Zacks Consensus Estimate of a 20-cent loss, a 690% surprise. Revenues of $141.57 million also topped the $137.30 million consensus estimate. Lifetime Brands, Inc. price-consensus-eps-surprise-chart | Lifetime Brands, Inc. Quote CEO Rob Kay said the $40.1 million benefit was recorded through cost of goods sold because the tariffs were paid in 2025. That treatment lifted second-quarter gross margin to 65.9%. Kay said the cash will cover taxes, restore compensation and product investments, and support deleveraging. Lifetime Brands has repaid $40 million of term debt since the end of the first quarter. CFO Laurence Winoker said $36.4 million had been received. He said Lifetime Brands was in the final stage of refinancing its revolving credit facility and term loan, with maturities expected to extend to 2031 if completed. Net sales rose 7.4% year over year, led by warehouse clubs and e-commerce, despite shipment timing shifts. Kay described end markets as soft across most consumer durable categories. Lifetime Brands maintained 2026 net sales guidance of $650 million to $700 million. CEO Kay said the outlook incorporates caution around inflation, geopolitical conditions and higher ocean freight costs. CFO Winoker said adjusted EBITDA guidance increased to $90.5 million-$93 million. CEO Kay said the increase mainly reflects the tariff refund, partly offset by restored spending and product investment rather than a change in the organic outlook. The CEO said startup inefficiencies at the Hagerstown, MD, distribution center delayed shipments and required additional labor. Lifetime Brands reported $2.2 million of non-recurring warehouse relocation and redesign expenses. Kay said most ramp-up inefficiencies had been addressed, with shipment catch-up expected over two to three weeks. Some impact is still expected in the third quarter. The CEO said the facility is targeted to be fully operational by the fourth quarter, while the New Jersey operation is expected to cease by year-end. Startup costs could exceed prior estimates if disruptions continue. Kay said the redesigned Farberware kitchen-tool line had encouraging early sell-through. Lifetime Brands also extended its Dolly Parton license for three years. During Q&A, the CEO said Dolly is about a $20 million business and is expected to grow modestly this year. He also cited growth in KitchenAid and renewed gains in Mikasa. Rob Kay said International narrowed its losses, with Project Concord entering its final cost-action phase. He reiterated that the segment remains on track to reach breakeven on a pro forma basis in 2026 while Lifetime Brands evaluates options for its U.K. facility. A ROTH Capital analyst asked why the adjusted EBITDA guidance increase was smaller than the tariff refund. Kay said the difference primarily reflects restored compensation and new-product investment. A Sidoti analyst asked about delayed orders. Kay said customer merchandising decisions and Hagerstown issues shifted sizable orders mainly into the third quarter. A Canaccord Genuity analyst questioned the wide sales guidance range and whether shifted shipments could be lost. The CEO said there was no underlying message that the business would be lost and reiterated a conservative approach to guidance. CEO Rob Kay’s closing emphasis remained on completing the Hagerstown ramp, advancing Project Concord, moving International toward breakeven and sustaining momentum in core brands. He also pointed to the December Investor Day for a longer-term strategy update. The call paired a reported earnings boost from the tariff refund with a soft end market and operational work still underway. Capital deployment, distribution execution and second-half shipment timing remain central to management’s 2026 plan. LCUT currently carries a Zacks Rank #3 (Hold). Its Value Score of A and Growth Score of B are favorable in the Style Scores framework, while its Momentum Score of C is less strong. The VGM Score of A reflects a favorable combined profile. Zacks identifies the strongest Style Score combinations among Zacks Rank #1 (Strong Buy) and 2 (Buy) stocks with A or B scores, placing LCUT outside that top-ranked group. The Zacks Rank can change as earnings estimates are revised after the just-reported results. You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lifetime Brands, Inc. (LCUT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Net Sales: Increased 7.4% to $141.6 million. US Segment Sales: Increased 7.5% to $128.2 million. International Segment Sales: Increased 6.8% (5.3% in local currency) to $13.4 million. Gross Margin: Increased to 65.9% from 38.6%, driven by a $40.1 million tariff refund benefit. Net Income: $19.6 million, or $0.87 per diluted share, compared to a loss of $39.7 million, or $1.83 per diluted share, in the prior year. Adjusted Net Income: $26.6 million, or $1.18 per diluted share, compared to an adjusted net loss of $2.6 million, or $0.12 per share, in 2025. Income from Operations: $31.6 million, compared to a loss from operations of $37.2 million in the prior year period. Adjusted Income from Operations: $41.1 million, compared to $900,000 in the 2025 period. Adjusted EBITDA: $92 million for the trailing twelve months ended June 30, 2026. SG&A Expenses: Increased 5.3% to $39.5 million. Interest Expense: Decreased by $900,000 due to lower average outstanding borrowings and lower interest rates. Net Debt: Declined by approximately $10 million in the quarter and approximately $39 million since year-end 2025. Liquidity: Approximately $151 million at quarter end. Full Year 2026 Guidance: Net sales of $650 million to $700 million; adjusted income from operations of $81.5 million to $84 million; adjusted net income of $46 million to $47.5 million; adjusted EBITDA of $90.5 million to $93 million. Warning! GuruFocus has detected 8 Warning Signs with LCUT. Is LCUT fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Lifetime Brands Inc (NASDAQ:LCUT) reported a 7.4% increase in net sales to $141.6 million in Q2 2026, driven by growth in warehouse club programs and e-commerce. The company recorded a $40.1 million tariff refund benefit, with $36 million already received in cash, significantly boosting gross margin to 65.9%. Lifetime Brands Inc (NASDAQ:LCUT) repaid $40 million of term debt since the end of Q1, strengthening its balance sheet and reducing net debt by approximately $39 million since year-end 2025. The company is in the final stages of refinancing its debt, which is expected to extend maturities to 2031 and reduce annualized interest expense. International segment losses narrowed meaningfully, with sales up 6.8% and a path to break-even on a pro forma basis in 2026. The relaunched Farberware kitchen tool line has shown encouraging early sell-through, and the Dolly Parton license was extended for another three years. Consumer demand remains soft across most durable categories, with third-party data showing unit sales down 7.5% to 10% in the company's categories. The new Hagerstown, Maryland distribution center caused operational disruptions and shipment delays in Q2, with continued but smaller impact expected in Q3. The company experienced timing delays on several programs, shifting revenues from Q2 into Q3 and Q4, partly due to market conditions and internal challenges. Gross margin percentage was negatively impacted by an unfavorable product mix, including lower-margin warehouse club volume and pricing mitigation strategies. Higher ocean freight costs and inflationary pressures are expected to impact the business for the rest of the year, leading to a cautious full-year guidance. The company is incurring one-time startup costs for the Hagerstown facility, including relocation, training, and lease expenses, which could exceed estimates if disruptions continue. Q: Can you unpack the delta between the $40.1 million tariff refund and the $37 million increase in adjusted EBITDA guidance, and will the remaining refund be recognized in the P&L?A: CEO Robert Kay explained that the delta is primarily due to the intended use of the refund. The company is using the cash to pay associated taxes, restore previously cut investments in product development and compensation, and strengthen the balance sheet through deleveraging. CFO Laurence Winoker added that the $40.1 million reflects the full expected recovery, with approximately $36 million received in cash to date, and the remainder accrued based on their analysis. Q: Can you quantify the impact of the Hagerstown distribution center ramp-up on Q2 and what is factored into the full-year guidance?A: CEO Robert Kay stated that the startup costs and operational disruptions were anticipated and already included in the initial guidance. The inefficiencies, which involved running extra shifts to process shipments, have largely been resolved. The company expects to be fully operational by Q4, with the New Jersey facility closing by year-end. The shipment delays caused by the ramp-up shifted some revenue from Q2 into Q3. Q: What are the broad brushstrokes of the new debt refinancing package, and will it increase capacity for acquisitions?A: CEO Robert Kay indicated the company is in the final stages of refinancing, potentially consummating the deal imminently. The new structure will more fully utilize the asset-based lending capability, which is lower-cost debt. The term loan will be significantly smaller, but the facility will include accordion features to add capacity for external initiatives like acquisitions. The company currently has approximately $151 million in liquidity. Q: Can you quantify the timing shifts that impacted Q2 sales, and can you speak to pricing versus unit volumes?A: CEO Robert Kay noted that Q2 results were in line with expectations, with growth led by warehouse clubs and e-commerce. Some sizable customer orders shifted into Q3 due to merchandising strategies and retailer softness, as well as the Hagerstown ramp-up. Regarding price versus volume, Kay noted that third-party data shows the overall market for their categories is down 2% to 3% on a dollar basis and down 7.5% to 10% on a unit basis, but Lifetime Brands performed better than the market. Q: What is the annual run rate for the Dolly Parton line, and which brands are growing versus 2024?A: CEO Robert Kay stated that Dolly Parton is now approximately a $20 million business, making it the company's fifth-largest brand. While it won't grow at the same rate as prior years, it is expected to grow slightly. The company also highlighted strong growth in Mikasa, which had declined in 2025 but is seeing a recovery in 2026. The relaunched Farberware line is performing well at point-of-sale, though the numbers include noise from discounting existing inventory. Q: Is the wide sales guidance range a subtle acknowledgment that shifted shipments might not happen?A: CEO Robert Kay clarified that there is no subtle underlying message that the business will be lost. The company believes the shifted shipments will occur in the second half. The conservative approach to guidance is intentional, as management prefers to be in a position to raise guidance as the year unfolds rather than risk lowering it. Q: Can you provide more detail on the international segment's path to breakeven and the UK facility options?A: CEO Robert Kay stated that Project Concord remains on plan, with final actions being implemented. The company is actively evaluating options for the UK facility to further improve segment performance. International sales were up in Q2, and year-to-date losses were meaningfully lower than the prior year. The company remains on track for international to reach breakeven on a pro forma basis in 2026. Q: How is the company using the tariff refund to address inflationary pressures and restore spending?A: CEO Robert Kay explained that the refund is being used to mitigate inflationary pressures flowing through the business, restore reductions made in 2025 to protect the bottom line, and fund growth and product investments that had been curtailed. The company has already begun restoring spending levels since the beginning of 2026, including compensation levels and new product development. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Declares Regular Quarterly Dividend GARDEN CITY, N.Y., Aug. 06, 2026 (GLOBE NEWSWIRE) -- Lifetime Brands, Inc. (NasdaqGS: LCUT), a leading global designer, developer and marketer of a broad range of branded consumer products used in the home, today reported its financial results for the quarter ended June 30, 2026. Rob Kay, Lifetime's Chief Executive Officer, commented, “Our second quarter results were in line with expectations and reflected notable growth compared to the prior year period that had been adversely impacted by the U.S. government implementation of initial high tariff rates across many countries. Net sales were up 7.4% and we saw significant earnings growth that includes the expected recovery of tariffs we paid in 2025. We will put that capital to work, paying the associated taxes, restoring reductions that had been implemented in 2025 to increase our bottom line against the impact from these tariff expenses and to fund the investments to bolster competitiveness and restore the balance sheet strength which we have used to fund the carrying cost of tariffs paid. Accordingly, since the end of the first quarter, we have repaid $40 million of term debt using cash generated from operations and the receipt of tariff refunds. The underlying business performed well despite softer end markets, led by growth in warehouse club programs and e-commerce. The relaunch of our redesigned Farberware line is off to an encouraging start and we extended our Dolly Parton license for an additional three years, reflecting the continued strength of that partnership. Our International segment again narrowed its losses and remains on track to achieve break-even in 2026, and the Hagerstown facility is online. While this new facility is experiencing startup challenges, we remain targeted for full operation by the fourth quarter this year. For 2026, we are reaffirming our net sales guidance, and raising earnings guidance to reflect the recognition of the tariff refunds. As previously announced, we look forward to presenting our longer-term strategy at our upcoming Investor Day this December. Second Quarter Financial Results: Consolidated net sales for the three months ended June 30, 2026 were $141.6 million, representing an increase of $9.7 million, or 7.4%, as compared to net sales of $131.9 million for the corresponding period in 2025. In constant currency, a non-GAAP financial measure, which excludes the impact of foreign exchange fluctuations and was determined by applying 2026 average rates to 2025 local currency amounts, consolidated net sales increased by $9.5 million, or 7.2%, as compared to consolidated net sales in the corresponding period in 2025. A table reconciling this non-GAAP financial measure to consolidated net sales, as reported, is included below. Gross margin for the three months ended June 30, 2026 was $93.2 million, or 65.9%, as compared to $50.8 million, or 38.6%, for the corresponding period in 2025. Gross margin for the current period includes a tariff refund benefit of $40.1 million. Selling, general and administrative expenses for the three months ended June 30, 2026 were $39.5 million, an increase of $2.0 million, or 5.3%, as compared to $37.5 million for the corresponding period in 2025. Income from operations was $31.6 million, as compared to loss from operations of $(37.2) million for the corresponding period in 2025. Income from operations for the current period includes a tariff refund benefit of $40.1 million. Loss from operations for the prior period included a non-cash goodwill impairment charge of $33.2 million related to the U.S. segment. Adjusted income from operations(1) was $41.1 million, as compared to adjusted income from operations of $0.9 million for the corresponding period in 2025. The 2026 period included adjustments for acquisition-related intangible amortization expense of $4.3 million, acquisition-related diligence expenses of $1.0 million, restructuring expenses of $2.0 million, and warehouse relocation and redesign expenses of $2.2 million. The 2025 period included adjustments for acquisition-related intangible amortization expense of $4.4 million, acquisition-related diligence expenses of $0.1 million, warehouse relocation and redesign expenses of $0.1 million, severance expenses of $0.3 million and goodwill impairment charge of $33.2 million. Net income was $19.6 million, or $0.87 per diluted share, as compared to net loss of $(39.7) million, or $(1.83) per diluted share, in the corresponding period in 2025. Net income for the current period included a pre-tax tariff refund benefit of $40.1 million. Net loss for the prior period included a non-cash goodwill impairment charge of $33.2 million. Adjusted net income(1) was $26.6 million, or $1.18 per diluted share, as compared to adjusted net loss of $(2.6) million, or $(0.12) per diluted share, in the corresponding period in 2025. (1) A table reconciling this non-GAAP financial measure to its most comparable GAAP financial measure, as reported, is included below. Six Months Financial Results: Consolidated net sales for the six months ended June 30, 2026 were $285.1 million, an increase of $13.2 million, or 4.9%, as compared to net sales of $271.9 million for the corresponding period in 2025. In constant currency, a non-GAAP financial measure, which excludes the impact of foreign exchange fluctuations and was determined by applying 2026 average rates to 2025 local currency amounts, consolidated net sales increased by $12.0 million, or 4.4%, as compared to consolidated net sales in the corresponding period in 2025. A table reconciling this non-GAAP financial measure to consolidated net sales, as reported, is included below. Gross margin for the six months ended June 30, 2026 was $147.4 million, or 51.7%, as compared to $101.5 million, or 37.3%, for the corresponding period in 2025. Gross margin for the current period includes a tariff refund benefit of $40.1 million Selling, general and administrative expenses for the six months ended June 30, 2026 were $76.3 million, an increase of $7.3 million, or 10.6%, as compared to $69.0 million for the corresponding period in 2025. Selling, general and administrative expenses for the prior period included a net legal settlement gain of $6.4 million. Income from operations was $29.4 million, as compared to loss from operations of $(36.1) million for the corresponding period in 2025. Income from operations for the current period included a tariff refund benefit of $40.1 million. Loss from operations for the prior period includes a non-cash goodwill impairment charge of $33.2 million related to the U.S. segment. Adjusted income from operations(1) was $46.5 million, as compared to zero for the corresponding period in 2025. The 2026 period included adjustments for acquisition-related intangible amortization expense of $8.6 million, acquisition-related diligence expenses of $2.1 million, restructuring expenses of $4.0 million, and warehouse relocation and redesign expenses of $2.4 million. The 2025 period included adjustments for acquisition-related intangible amortization expense of $8.7 million, non-recurring gain related to a litigation settlement of $6.4 million, acquisition-related diligence expenses of $0.1 million, warehouse relocation and redesign expenses of $0.1 million, severance expenses of $0.3 million and goodwill impairment charge of $33.2 million. Net income was $14.8 million, or $0.66 per diluted share, as compared to net loss of $(43.9) million, or $(2.03) per diluted share, in the corresponding period in 2025. Net income for the current period included a pre-tax tariff refund benefit of $40.1 million. Net loss for the prior period included a non-cash goodwill impairment charge of $33.2 million. Adjusted net income(1) was $27.4 million, or $1.23 per diluted share, as compared to adjusted net loss(1) of $(7.9) million, or $(0.37) per diluted share, in the corresponding period in 2025. Adjusted EBITDA(1) was $92.0 million for the trailing twelve months ended June 30, 2026. Liquidity as of June 30, 2026 was $150.6 million, consisting of $5.5 million of cash and cash equivalents, $128.3 million of availability under the ABL Agreement, and $16.8 million of available funding under the Receivables Purchase Agreement. (1) A table reconciling this non-GAAP financial measure to its most comparable GAAP financial measure, as reported, is included below. Dividend On August 4, 2026, the Board declared a quarterly dividend of $0.0425 per share of common stock payable on November 13, 2026 to stockholders of record on October 30, 2026. Full Year 2026 Guidance Updates For the full year ending December 31, 2026, the Company is updating its financial guidance as follows:(in millions - except per share data): Tables reconciling non-GAAP financial measures to GAAP financial measures, as reported, are included below. Conference Call The Company has scheduled a conference call for Thursday, August 6, 2026 at 11:00 a.m. (Eastern Time). The dial-in number for the conference call is 1-844-826-3035 (USA) or 1-412-317-5195 (International). In addition, a live webcast of the conference call will be accessible through: https://viavid.webcasts.com/starthere.jsp?ei=1766897&tp_key=4a751b1112 For those who cannot listen to the live broadcast, an audio replay of the webcast will be available on the Company’s investor relations website at https://lifetimebrands.gcs-web.com/ or via telephone replay by dialing 1-844-512-2921 (USA) or 1-412-317-6671 (International) and entering access code 10209750. The replay of the webcast will be available for one year. Non-GAAP Financial Measures This earnings release contains non-GAAP financial measures, including constant currency net sales, adjusted income from operations, adjusted net income (loss), adjusted diluted income (loss) per common share, adjusted EBITDA and adjusted EBITDA, before limitation. A non-GAAP financial measure is a numerical measure of a company’s historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statements of income, balance sheets, or statements of cash flows of a company; or, includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. These non-GAAP financial measures are provided because the Company's management uses these financial measures in evaluating the Company’s on-going financial results and trends, and management believes that exclusion of certain items allows for more accurate period-to-period comparison of the Company’s operating performance by investors and analysts. Management uses these non-GAAP financial measures as indicators of business performance. These non-GAAP financial measures should be viewed as a supplement to, and not a substitute for, GAAP financial measures of performance. As required by SEC rules, the Company has provided reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures. Forward-Looking Statements In this press release, the use of the words “advance,” “believe,” “continue,” “could,” “deliver,” “drive,” “enable,” “expect,” “gain,” “goal,” “grow,” “intend,” “maintain,” “manage,” “may,” “outlook,” “plan,” “positioned,” “project,” “projected,” “should,” “take,” “target,” “unlock,” “will,” “would”, or similar expressions is intended to identify forward-looking statements. Such statements include all statements regarding the growth of the Company, the Company’s financial guidance, the Company’s ability to navigate the current environment and advance the Company’s strategy, the Company’s commitment to increasing investments in future growth initiatives, the Company’s initiatives to create value, the Company’s efforts to mitigate geopolitical factors and tariffs, the Company’s current and projected financial and operating performance, results, and profitability and all guidance related thereto, including forecasted exchange rates and effective tax rates, as well as the Company’s continued growth and success, future plans and intentions regarding the Company and its consolidated subsidiaries. Such statements represent the Company’s current judgments, estimates, and assumptions. The Company believes these judgments, estimates, and assumptions are reasonable, but these statements are not guarantees of any events or financial or operational results, and actual results may differ materially due to a variety of important factors. Such factors might include, among others, the Company’s ability to comply with the requirements of its credit agreements; the availability of funding under such credit agreements; the Company’s ability to maintain adequate liquidity and financing sources and an appropriate level of debt, as well as to deleverage its balance sheet; seasonality of the Company's cash flows; the possibility of impairments to the Company’s goodwill; the possibility of impairments to the Company’s intangible assets; the highly seasonal nature of the Company’s business; the Company’s ability to drive future growth and profitability from its European operations; changes in U.S. or foreign trade or tax law and policy; changes in general economic conditions that could impact the Company’s customers and affect customer purchasing practices or consumer spending; customer ordering behavior; the performance of the Company’s newer products; expenses and other challenges relating to the integration of any future acquisitions; changes in demand for the Company’s products; changes in the Company’s management team; the significant influence of the Company’s largest stockholder; fluctuations in foreign exchange rates; changes in U.S. trade policy or the trade policies of nations in which the Company or the Company’s suppliers do business; shortages of and price volatility for certain commodities; global health epidemic; social unrest, including related protests and disturbances; the emergence, continuation and consequences of geopolitical conditions, including political instability in the U.S. and abroad, unrest, sanctions, war and armed conflicts, increasing regional and global tensions, and associated disruptions and volatility in energy and oil markets; macro-economic challenges, including labor disputes, depreciation of the U.S. dollar, volatility in the capital markets, inflationary impacts and disruptions to the global supply chain; dependence on third-party manufacturers; increase in supply chain costs, including raw materials, sourcing, transportation and energy; the imposition of duties and tariffs and other trade barriers and retaliatory countermeasures and/or economic sanctions implemented by the U.S. and other governments; impact of tariffs and trade policies, particularly with respect to China, including the risk of frequent changes, legal challenges, or reinstatement in modified form; the Company’s ability to successfully integrate acquired businesses; the Company’s expectations regarding customer purchasing practices and the future level of demand for the Company’s products; the Company’s ability to execute on the goals and strategies set forth in the Company’s Project Concord plan; and significant changes in the competitive environment and the effect of competition on the Company’s markets, including on the Company’s pricing policies, financing sources and ability to maintain an appropriate level of debt. The Company undertakes no obligation to update these forward-looking statements other than as required by law. Lifetime Brands, Inc. Lifetime Brands is a leading global designer, developer and marketer of a broad range of branded consumer products used in the home. The Company markets its products under well-known kitchenware brands, including Farberware®, KitchenAid®, Sabatier®, Amco Houseworks®, Chef’n® Chicago™ Metallic, Copco®, Fred® & Friends, Houdini™, KitchenCraft®, Kamenstein®, La Cafetière®, MasterClass®, Misto®, Swing-A-Way®, Taylor® Kitchen, Rabbit®, and Dolly®; respected tableware and giftware brands, including Mikasa®, Pfaltzgraff®, Fitz and Floyd®, Empire Silver™, Gorham®, International® Silver, Towle® Silversmiths, Wallace®, Wilton Armetale®, V&A®, Royal Botanic Gardens Kew®, Year & Day®, Dolly®, Royal Leerdam®, and ONIS®; and valued home solutions brands, including BUILT NY®, S’well®, Taylor® Bath, Taylor® Kitchen, Taylor® Weather, Elements®, Planet Box®, and Dolly®. The Company also provides exclusive private label products to leading retailers worldwide. The Company’s corporate website is www.lifetimebrands.com. Contacts: Lifetime Brands, Inc. Laurence Winoker, Chief Financial [email protected] or MZ North America Shannon DevineMain: [email protected]

Interested in Lifetime Brands, Inc.? Here are five stocks we like better. Q2 results improved sharply: Net sales rose 7.4% to $141.6 million, while the company returned to profitability with $19.6 million in net income. Results were significantly boosted by a $40.1 million expected refund of tariffs paid in 2025. Balance sheet strengthened: Lifetime Brands repaid $40 million of term debt during and shortly after the quarter, reducing net debt to about $121 million. The company also expects to refinance its debt and extend maturities to 2031. Outlook raised for earnings but not sales: The company maintained its 2026 sales forecast of $650 million to $700 million while increasing guidance for adjusted operating income, net income and EBITDA. The Maryland distribution-center transition remains a near-term operational risk but is expected to be fully operational by Q4. Lifetime Brands (NASDAQ:LCUT) reported higher second-quarter sales and a return to profitability, with results significantly boosted by a $40.1 million benefit tied to expected refunds of tariffs paid in 2025. Net sales rose 7.4% year over year to $141.6 million in the second quarter of 2026. Net income totaled $19.6 million, or $0.87 per diluted share, compared with a net loss of $39.7 million, or $1.83 per diluted share, in the prior-year period. Adjusted net income was $26.6 million, or $1.18 per diluted share, compared with an adjusted net loss of $2.6 million, or $0.12 per share, a year earlier. → 3 Drone Stocks That Should Soar After the Summer Slump Chief Executive Officer Rob Kay said the company’s reported earnings growth was meaningfully driven by the tariff refund, but described the underlying quarter as solid despite soft consumer-durable end markets, program timing shifts and disruptions associated with the startup of a new Maryland distribution center. Lifetime Brands recorded a $40.1 million benefit for expected refunds of tariffs imposed under the International Emergency Economic Powers Act, or IEEPA. The company said it paid $41.7 million in related tariffs during 2025 and had received approximately $36 million in cash by the time of the call, including $36.4 million cited by Chief Financial Officer Larry Winoker. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Because the tariffs were originally included in cost of goods sold, the refund was also recognized in cost of goods sold. As a result, consolidated gross margin rose to 65.9% from 38.6% in the year-earlier quarter. U.S. gross margin increased to 68.3% from 39.1%, with the refund partly offset by unfavorable product mix. Income from operations was $31.6 million, compared with a $37.2 million operating loss in the prior-year period. The 2025 loss included a $33.2 million non-cash goodwill impairment charge related to the U.S. segment. Adjusted income from operations rose to $41.1 million from $900,000. → Jersey Mike's Serves Fresh Gains After IPO Stumble Kay said the company intends to use the refund proceeds to pay related taxes, address inflationary pressures, restore certain spending reductions made during 2025, invest in products and reduce debt. He said compensation reductions have been restored, while investments in new products that had been curtailed are being reinstated. The company is not restoring all headcount reductions, he said. Lifetime Brands repaid $40 million of term debt since the end of the first quarter, including $20 million during the second quarter and another $20 million in early July. Net debt declined by about $10 million during the quarter and by approximately $39 million since year-end 2025, reaching about $121 million. Liquidity at quarter-end was approximately $151 million. U.S. segment sales increased 7.5% to $128.2 million, while international segment sales rose 6.8% to $13.4 million, or 5.3% in local currency. U.S. sales increased across all product categories, led by warehouse-club programs and, to a lesser extent, e-commerce. International growth was driven by Asia-Pacific and Continental Europe, partly offset by lower sales in the United Kingdom. Kay said several sizable customer orders shifted from the second quarter primarily into the third quarter, reflecting retailers’ merchandising strategies and delayed product resets. Some shipments also moved because of operational challenges during the opening of the company’s Hagerstown, Maryland, distribution center. He said consumer durable markets remain soft. Citing third-party Circana data, Kay said the aggregate market for the company’s categories was down roughly 2% to 3% on a dollar basis and down more sharply on a unit basis, in a range of about 7.5% to 10%. He said Lifetime Brands performed better than those broader market trends. The company’s warehouse-club volume contributed to sales growth but carried lower margins than the company average. Kay also said tariff-related pricing actions have reduced gross-margin percentages in the underlying business as the company focuses on maintaining gross-margin dollars. Lifetime Brands said the Hagerstown facility was online but affected second-quarter shipping and expenses as the operation ramped. U.S. distribution expense, excluding non-recurring costs, was 11.9% of goods shipped from company warehouses, compared with 11% a year earlier, primarily because of labor inefficiencies connected to the move from New Jersey to Maryland. Non-recurring expenses totaled $2.2 million in the quarter, including inventory relocation, recruiting and training, setup costs and lease expenses related to portions of the New Jersey and Maryland facilities. Kay said the company expects a smaller impact in the third quarter and expects the Maryland facility to be fully operational by the fourth quarter. He said ramp-up inefficiencies had mostly been resolved and that the company was shipping at a healthy rate, though it still needed to catch up on shipments over the following weeks. The New Jersey facility is expected to cease operations by the end of 2026. The company said its full-year guidance already incorporates expected incremental one-time costs from the distribution-center startup. However, it cautioned that costs could exceed previous estimates if disruptions continue. Lifetime Brands reaffirmed its 2026 net sales outlook of $650 million to $700 million. It raised earnings guidance to reflect the tariff refund, while also accounting for investments, inflation and other costs. Adjusted income from operations: $81.5 million to $84 million Adjusted net income: $46 million to $47.5 million Adjusted EBITDA: $90.5 million to $93 million Winoker said trailing 12-month adjusted EBITDA through June 30 was $92 million. Interest expense, excluding mark-to-market swap adjustments, fell by $900,000 because of lower average borrowings and lower interest rates. The company also said it was in the final stages of extending its revolving credit facility and refinancing its term loan. If completed, the transaction would extend all debt maturities to 2031. Kay said the planned financing is intended to improve the mix and tenor of debt, reduce annualized interest expense and retain capacity for potential tuck-in acquisitions. On products and brands, the company said its redesigned Farberware kitchen-tool line relaunched in the second quarter and had encouraging early sell-through. Lifetime Brands also extended its Dolly Parton license for three years. Kay said the Dolly Parton business is approximately $20 million in annual sales and is expected to grow modestly this year after rapid expansion in prior years. He also cited growth in KitchenAid and Mikasa. International sales increased and year-to-date losses narrowed materially, with most of the improvement occurring during the second quarter. The company said Project Concorde remains on plan and that it is evaluating options for its U.K. facility. Lifetime Brands continues to target international break-even on a pro forma basis in 2026. Lifetime Brands, Inc, through its subsidiaries, designs, sources, manufactures and distributes a broad portfolio of consumer products for the home. Headquartered in Garden City, New York, the company operates three primary business segments—Kitchenware, Tabletop & Home Décor and Tools & Storage—providing solutions for food preparation, cooking, serving and storage under both proprietary and licensed brand names. In the Kitchenware segment, Lifetime Brands offers cookware, bakeware, cutlery and small electric appliances under brands such as Farberware and Chef'sChoice. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Lifetime Brands Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Lifetime Brands (LCUT) came out with quarterly earnings of $1.18 per share, beating the Zacks Consensus Estimate of a loss of $0.2 per share. This compares to a loss of $0.5 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +690.00%. A quarter ago, it was expected that this kitchen products company would post a loss of $0.18 per share when it actually produced earnings of $0.04, delivering a surprise of +122.22%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Lifetime Brands, which belongs to the Zacks Consumer Products - Discretionary industry, posted revenues of $141.57 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.08%. This compares to year-ago revenues of $131.86 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Lifetime Brands shares have added about 113.2% since the beginning of the year versus the S&P 500's gain of 12.8%. While Lifetime Brands has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Lifetime Brands was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.25 on $176.83 million in revenues for the coming quarter and $0.73 on $671.13 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consumer Products - Discretionary is currently in the bottom 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. CuriosityStream Inc. (CURI), another stock in the broader Zacks Consumer Discretionary sector, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 12. This company is expected to post quarterly earnings of $0.04 per share in its upcoming report, which represents a year-over-year change of +300%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. CuriosityStream Inc.'s revenues are expected to be $21.44 million, up 12.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lifetime Brands, Inc. (LCUT) : Free Stock Analysis Report CuriosityStream Inc. (CURI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research