Second quarter sales at Lifetime Brands were down as company officials pinned the decline on a down cycle at retail coupled with broader issues, such as the impact of tariffs and uncertainty over Brexit.
Consolidated net sales for the three months ended June 30 were $142.5 million, a decrease of $6.2 million, or 4.2%, as compared to net sales of $148.7 million for the corresponding period in 2018. Net loss was $11.5 million, or $0.56 per diluted share, as compared to a net loss of $6.1 million, or $0.30 per diluted share, in the corresponding period in 2018.
Consolidated net sales for the six months ended June 30 were $292.5 million, an increase of $25.7 million, or 9.6%, as compared to net sales of $266.8 million for the corresponding period in 2018. Net loss for the first six months was $16.4 million, or $0.80 per diluted share, as compared to a net loss of $17.7 million, or $0.96 per diluted share, in the corresponding period in 2018.
“For the six months of 2019, we continued to make progress on our long-term growth initiatives, and I am pleased that we remain on track to achieve our strategic priorities of integrating all of our operations and product categories into a unified business platform which is more cost efficient and better positioned to grow in the second half of 2019 and beyond,” said Rob Kay, Lifetime’s CEO. “In the second quarter, we made significant progress on our portfolio realignment with the conclusion of a comprehensive SKU rationalization, began to see the benefits of our reorganization efforts in the UK, and strengthened our global position in the food services category.”
As a result of the company’s SKU rationalization, Kay said the company has decided to discontinue or de-emphasize certain product categories, which resulted in a one-time, non-cash $8.5 million accounting charge related to the SKU rationalization initiative. He did not offer specifics on which categories are impacted by the SKU rationalization.
For the remainder of the current fiscal year, Lifetime Brands is forecasting net sales of $755 million to $760 million, the midpoint of which would represent a 3.7% increase over 2018 pro forma sales.