Lifetime Brands has reported higher consolidated net sales and a slight decline in net income for its fourth quarter ended December 31, 2014.
Net sales for the quarter were $190 million, an increase of 15.2% compared to $164.9 million in the corresponding period last year. Net sales for the year ending December 31 2014 were $596 million, an increase of 16.6% compared to $502.7 million in the prior year. Net sales of the U.S. in 2014 were $441.3 million, a decrease of 0.6% from 2013 that is said to be driven by a decreased sales volume in cookware and novelty kitchenware, and a decrease in cutlery sales under the Cuisinart brand.
Outside the U.S., wholesale net sales increased by $86.3 million to $125.2 million, an increase fueled by sales from Kitchen Craft and La Cafetiere which were acquired during the year.
“For 2014, despite the a continuation of the tough retail environment and a mixed holiday selling season, Lifetime delivered consolidated net sales of $586 million and EBITDA of $42.5 million, reflecting the success of our acquisition strategy and international expansion,” said Jeffrey Siegel, Lifetime’s chairman and CEO.
Net income was $9.3 million, or $0.66 per diluted share, in the quarter ended December 31, 2014, as compared to net income of $9.4 million, or $0.72 per diluted share, in the corresponding period in 2013. For the full fiscal year, net income was $1.5 million, or $0.11 per diluted share as compared to $9.3 million, or $0.71 per diluted share, in the corresponding period in 2013.
Siegel noted that lower oil prices, lower raw material costs, a continued decrease in the U.S. unemployment rate and the strong U.S. dollar will benefit the company’s business this year. As such, Siegel foresees sales increase by 3% to 6%.
“We believe current trends favor large and financially stable manufacturers and suppliers with multiple brands targeted to various age groups, advanced design capabilities and internal drop-ship distribution capabilities. We believe that these manufacturers and suppliers increasingly will be called upon to act as long-term partners by large retailers,” Siegel said.