Lifetime Brands, Inc. — Second Quarter 2026 Earnings Summary

Financial Performance

• Consolidated net sales for the quarter ended June 30, 2026, were $141.6 million, a 7.4% increase from $131.9 million in the prior year period; constant currency sales increased 7.2%.
• Consolidated net sales for the six months ended June 30, 2026, were $285.1 million, a 4.9% increase from $271.9 million in the prior year period; constant currency sales increased 4.4%.
• Gross margin for the quarter was 65.9% ($93.2 million) compared to 38.6% ($50.8 million) in the prior year, including a $40.1 million tariff refund benefit.
• Gross margin for the six months was 51.7% ($147.4 million) compared to 37.3% ($101.5 million) in the prior year, including a $40.1 million tariff refund benefit.
• Income from operations for the quarter was $31.6 million, a significant improvement from a $37.2 million loss in the prior year; the prior year loss included a $33.2 million non-cash goodwill impairment charge.
• Income from operations for the six months was $29.4 million, compared to a $36.1 million loss in the prior year.
• Net income for the quarter was $19.6 million ($0.87 per diluted share), compared to a $39.7 million loss ($1.83 per diluted share) in the prior year.
• Net income for the six months was $14.8 million ($0.66 per diluted share), compared to a $43.9 million loss ($2.03 per diluted share) in the prior year.
• Adjusted income from operations for the quarter was $41.1 million, compared to $0.9 million in the prior year.
• Adjusted income from operations for the six months was $46.5 million, compared to zero in the prior year.
• Adjusted net income for the quarter was $26.6 million ($1.18 per diluted share), compared to a $2.6 million adjusted loss ($0.12 per diluted share) in the prior year.
• Adjusted net income for the six months was $27.4 million ($1.23 per diluted share), compared to a $7.9 million adjusted loss ($0.37 per diluted share) in the prior year.
• Adjusted EBITDA for the trailing twelve months ended June 30, 2026, was $92.0 million.
• Liquidity as of June 30, 2026, totaled $150.6 million, comprising $5.5 million in cash and cash equivalents, $128.3 million available under the ABL Agreement, and $16.8 million available under the Receivables Purchase Agreement.
• Selling, general and administrative expenses for the quarter were $39.5 million (5.3% increase YoY); for the six months, they were $76.3 million (10.6% increase YoY).

Guidance and Future Outlook

• Full-year 2026 net sales guidance remains unchanged at $650 million to $700 million.
• Full-year 2026 income from operations guidance raised to $48 million to $50.5 million (previously $12 million to $14.5 million).
• Full-year 2026 adjusted income from operations guidance raised to $81.5 million to $84 million (previously $44.5 million to $47 million).
• Full-year 2026 net income guidance raised to $23 million to $24.5 million (previously a loss of $6.5 million to $5 million).
• Full-year 2026 adjusted net income guidance raised to $46 million to $47.5 million (previously $16 million to $17.5 million).
• Full-year 2026 adjusted diluted income per share guidance raised to $2.06 to $2.13 (previously $0.73 to $0.80).
• Full-year 2026 adjusted EBITDA guidance raised to $90.5 million to $93 million (previously $53.5 million to $56 million).
• The International segment is on track to achieve break-even in 2026.
• The Hagerstown facility is online and targeted for full operation by the fourth quarter of 2026, despite experiencing startup challenges.
• The company plans to present its longer-term strategy at an Investor Day in December 2026.

Business Segments and Product Lines

• Growth was led by warehouse club programs and e-commerce channels.
• The relaunch of the redesigned Farberware line is off to an encouraging start.
• The Dolly Parton license was extended for an additional three years.
• The International segment continued to narrow its losses.
• The U.S. segment previously recorded a $33.2 million non-cash goodwill impairment charge in the prior year period.

Market and Competitive Landscape

• The prior year period was adversely impacted by the U.S. government implementation of initial high tariff rates across many countries.
• The current period reflects the expected recovery of tariffs paid in 2025 through refunds.
• The company noted softer end markets despite underlying business growth.

Risks and Challenges

• The Hagerstown facility is experiencing startup challenges.
• The business faces risks related to geopolitical factors, tariffs, trade policies, and potential changes in U.S. or foreign trade law.
• Risks include fluctuations in foreign exchange rates, supply chain disruptions, and dependence on third-party manufacturers.
• Potential impairments to goodwill and intangible assets remain a risk.
• The company must maintain adequate liquidity and financing sources to comply with credit agreements.

Management Commentary and Tone

• CEO Rob Kay stated results were "in line with expectations" and reflected "notable growth" compared to the prior year.
• Management indicated they will use capital from tariff refunds to pay associated taxes, restore reductions implemented in 2025, fund investments to bolster competitiveness, and restore balance sheet strength.
• Since the end of the first quarter, the company repaid $40 million of term debt using cash generated from operations and tariff refunds.
• Management expressed confidence that the International segment will achieve break-even in 2026 and that the Hagerstown facility will be fully operational by Q4.

Other Key Points

• The Board declared a regular quarterly dividend of $0.0425 per share on August 4, 2026, payable on November 13, 2026, to stockholders of record on October 30, 2026.
• The company repaid $40 million of term debt since the end of the first quarter.
• A conference call was scheduled for August 6, 2026, at 11:00 a.m. Eastern Time, with a live webcast available.
• The company markets products under brands including Farberware, KitchenAid, Mikasa, S'well, and Dolly.