The move by retailers to close stores and reduce inventory levels had a negative impact on third quarter results at Lifetime Brands, company officials said.
For the three month period ended September 30, consolidated net sales were $166 million, down from sales of $170.1 million in the comparable quarter the previous year.
Adjusted net income was $5.5 million, or $0.37 per diluted share, as compared to adjusted net income of $7.5 million, or $0.52 per diluted share, in the third quarter of 2016. Consolidated EBITDA was $15.7 million, as compared to $16.7 million for the corresponding 2016 period.
For the first nine months of the current fiscal year, Lifetime reported consolidated net sales of $396.7 million, as compared to consolidated net sales of $399.1 million through the first nine months of 2016. Net income was $0.9 million, or $0.06 per diluted share, as compared to net income of $1 million, or $0.07 per diluted share, in the 2016 period.
Jeffrey Siegel, chairman and CEO of Lifetime Brands, said that in addition to the negative impact of store closures and the reduction of retail inventory, he noted that the company also intentionally limited sales to certain retailers due to credit concerns, which he did not identify.
Despite the challenges faced within the current retail environment, Siegel said that Lifetime’s e-commerce sales “grew dramatically” in the quarter
“If our growth in online sales through pure play online retailers and online sites of our traditional customers continues at the same pace as in the third quarter, we expect such e-commerce sales fully to offset the decline in sales to traditional brick and mortar stores during 2018,” he said.