Macroeconomic issues including tariffs in the United States and the on-going Brexit issue in the United Kingdom had a negative impact on fourth quarter performance at Lifetime Brands, its CEO said.
Consolidated net sales were $228.3 million in the quarter ended December 31, 2018, an increase of 24.9% when compared to consolidated net sales of the comparable quarter the previous year. Net sales for the fourth quarter of 2018 include revenue from brands acquired by Lifetime in the Filament Brands deal, which officially closed in March of 2018.
Net income was $10 million, or $0.49 per diluted share, in the quarter, as compared to net income of $1.3 million, or $0.08 per diluted share, in the corresponding quarter in 2017.
Robert Kay, Lifetime’s CEO, said of the fourth quarter results, “(This) is not what we expect to deliver to our shareholders.”
Pointing to the issue of tariffs in the U.S. and Brexit in Great Britan, Kay also noted that several of the company’s North American distribution channels delivered disappointing sales due to stocking levels and inventory management decisions by customers, including its largest e-commerce customer.
“While these events had an adverse impact on our results, we are optimistic that they are predominantly singular in nature,” he said.
For the full fiscal year, consolidated net sales were $704.5 million, up 21.6% year-over-year. Net loss was $1.7 million, or $0.09 per diluted share, in the year ended December 31, 2018, as compared to net income of $2.2 million, or $0.14 per diluted share, in the corresponding period in 2017.
Adjusted net income was $5.5 million, or $0.28 per diluted share, in the year ended December 31, 2018, as compared to adjusted net income of $10.6 million, or $0.71 per diluted share, in the corresponding period in 2017.
Kay said that despite the challenging fourth quarter, he noted that early results in 2019 were “positive” reflecting both a normalization of customer order behavior and “promising performance” for some new products.