Lifetime Brands has reported slightly lower consolidated net sales and an increase in net income for its fourth quarter ended December 31, 2015.
Net sales for the quarter were $185.9 million, a decrease of $4.1 million, or 2%, as compared to $190 million for the corresponding period last year. For the full fiscal year, net sales were $587.7 million in the year ended December 31, 2015, an increase of $1.7 million, or 0.3%, as compared to consolidated net sales of $586 million in 2014, which the company said was driven by strong sales of kitchenware, tableware and home solutions products, with a particularly strong increase in its home décor product category, where it leveraged its Bombay license.
The company’s net income was $11 million, or $0.77 per diluted share, in the fourth quarter ended December 31, 2015, as compared to net income of $9.3 million, or $0.66 per diluted share, in the corresponding period in 2014. For the 2015 fiscal year, net income was $12.3 million, or $0.86 per diluted share, as compared to net income of $1.5 million, or $0.11 per diluted share, in the corresponding period in 2014.
Jeffrey Siegel, Lifetime’s chairman and chief executive officer, commented that in kitchenware, the company benefited from strong increases in cutlery and the expansion of the Farberware brand. He also noted that tableware sales also rose.
“In 2015, net sales in the company’s U.S. wholesale segment grew by 3.9%. Sales of kitchenware, tableware and home solutions products all rose, with a particularly strong increase in our home décor product category, where we leveraged the Bombay license for giftables. In kitchenware, we benefited from strong increases in cutlery and the expansion of our important Farberware brand. Tableware sales also rose, reflecting good reception of several new programs for dinnerware and flatware,” said Siegel.
Siegel also indicated that Lifetime was undergoing a strategic review of its wholesale operations: “With the assistance of a major international consulting firm, we recently began an in-depth review of Lifetime’s U.S. wholesale businesses to ensure that we have the right structure to grow and thrive in today’s complex business environment. The study, which includes evaluations of our divisional organization structure, product pipeline and brand management, as well as SKU rationalization and SG&A spending, will serve as a blueprint to right size Lifetime’s SG&A expense base, realign our operating structure and redirect our operating activities to increase our efficiency and effectiveness. When fully implemented, we believe our business will be in a stronger position to achieve future growth and improved profitability.”
He continued, “To succeed with today’s consumers, housewares manufacturers need to deliver improved performance, expanded function and great design. The wide array of new products we offered clearly showed that Lifetime is leading this effort, keeping ahead of the curve on the ever-evolving kitchenware industry.”