Third quarter net sales at Lifetime Brands were up as company officials said the results reflected positive sales momentum in several categories including gadgets, kitchen tools and cutlery.
Consolidated net sales for the quarter ended September 30 were $170.1 million, as compared to consolidated net sales of $163.2 million in the corresponding period in 2015. In constant currency, which excludes the impact of foreign exchange fluctuations, consolidated net sales increased 6.4%, as compared to consolidated net sales in the corresponding period in 2015.
Gross margin was $58.3 million, or 34.3%, as compared to $57 million, or 34.9%, for the corresponding period in 2015. Income from operations was $10.8 million, as compared to $9.8 million for the corresponding period in 2015.
Net income was $6.5 million, or $0.44 per diluted share, as compared to net income of $5.1 million, or $0.36 per diluted share, in the corresponding period in 2015. Adjusted net income was $7.5 million, or $0.51 per diluted share, as compared to adjusted net income of $5.9 million, or $0.41 per diluted share, in the corresponding period in 2015.
In an investor conference call, Jeffrey Siegel, Lifetime’s chairman and CEO, said the company continues to gain market share within the gadgets and kitchen tools segment, with the Farberware brand leading the way. He also noted the success of the company’s EdgeKeeper line of cutlery, sold under the Farberware and Sabatier brands.
“We continue to expect EdgeKeeper to be a key driver for our cutlery business and, in this quarter, we’re introducing knife blocks with the same technology built in,” he said.
In addition, the company reported growth in wire storage and with Mikasa dinnerware and flatware programs. Lifetime has also seen sales growth with hydration bottles sold through its home solutions division.
Siegel also reported that Lifetime Next, the company’s initiative to simplify and strengthen the organization for growth that started in 2015 in cooperation with a major international consulting firm, is well underway.
“We now are in the implementation phase and expect to achieve process improvement savings beginning mid-year 2017, with full completion by year-end,” he said.