First quarter consolidated sales at Lifetime Brands were up, but the company’s net loss widened when compared to the first quarter of the previous year.
Consolidated net sales were $118.2 million, up from consolidated net sales of $113.4 million for the corresponding period in 2017. Net loss was $11.6 million, or $0.70 per diluted share, as compared to a net loss of $1.3 million, or $0.09 per diluted share when compared to the first quarter of 2017. Adjusted net loss was $8.3 million, or $0.50 per diluted share, as compared to a loss of $1.3 million, or $0.09 per diluted share, in the corresponding period in 2017.
“Our financial results for the quarter reflect the rapidly changing retail environment,” said Jeffrey Siegel, Lifetime’s executive chairman. “In addition, as we have noted in past earnings releases, we believe first quarter results are not indicative of the outlook for the full year, as our most significant initiatives are scheduled for the third and fourth quarters.”
During the first quarter, Lifetime completed the acquisition of Filament Brands and began what company officials said is an “ambitious” program to transform the company. The first quarter includes the results from Filament since March 2, when the acquisition was completed.
Rob Kay, the company’s CEO, noted that in the two months since Lifetime’s acquisition of Filament, the company has taken steps to align its business model and create a unified company.
“Our initial actions have been focused on integrating and consolidating our U.S. organization, including certain business units, our salesforce, our e-commerce/retail direct activities and IT, and on integrating our operations in China,” Kay said.
For the fiscal year ending December 31, the company feels net sales will be between $760 million to $772 million, with adjusted net income between $16 million and $19 million and adjusted diluted income per common share of between $0.81 to $0.96 per share.