Lifetime Announces 545% Increase In Net Income

Lifetime Brands, Inc. today announced its results for the three months ended September 30, 2009. Net income for the quarter was $4.9 million, as compared to a net loss of $1.1 million in the same period last year, representing a 545% increase. Diluted income per common share was $.40, as compared to a loss of $0.09 per common share in the 2008 quarter.
Jeffrey Siegel, chairman, CEO and president of Lifetime Brands said in a statement, “I am pleased to report that Lifetime’s strong market position, driven by its premier brands and its commitment to innovation, enabled the company to perform well notwithstanding the weak economy.” Despite economic challenges, Siegel said, Lifetime “significantly increased” its market share in several product areas, including dinnerware, picture frames, and its newest category, water bottles and thermal coffee mugs.
Lifetime Brand’s 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, as compared to net wholesale sales of $124.3 million in 2008. Approximately one-half of the decrease reflects, in the 2009 quarter, the absence of sales to Linens ‘n Things, the non-recurrence of sales of excess inventory in connection with its June 2008 purchase of Mikasa and the discontinuance of certain low-margin sales to a direct response retailer.
Net sales for Lifetime Brand’s direct-to-consumer business during the quarter were $5.1 million, consisting only of net sales from its e-commerce websites and mail order catalogs. Direct-to-consumer sales in the corresponding 2008 quarter were $6.5 million, excluding $9.9 million in net sales from the company’s retail outlet stores that were closed in 2008.