Lifetime Brands, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated net sales for the three months ended September 30, 2026, were $177.7 million, an increase of 3.4% year-over-year compared to $171.9 million in 2025.
• Consolidated net sales for the nine months ended September 30, 2026, were $462.8 million, an increase of 4.3% year-over-year compared to $443.9 million in 2025.
• Gross margin for the quarter ended September 30, 2026, was 36.5% ($64.9 million), compared to 35.1% ($60.4 million) in the prior year period; the current period included a $3.3 million charge for SKU rationalization.
• Gross margin for the nine months ended September 30, 2026, was 45.9% ($212.3 million), compared to 36.5% ($161.9 million) in the prior year period; the current period included a $40.1 million tariff refund benefit.
• Selling, general and administrative expenses for the quarter were $38.2 million, an increase of 7.6% year-over-year compared to $35.5 million.
• Selling, general and administrative expenses for the nine months were $114.5 million, an increase of 9.6% year-over-year compared to $104.5 million; the prior period included a $6.4 million net legal settlement gain.
• Loss from operations for the quarter was zero, compared to income from operations of $6.7 million in 2025; the current period included the $3.3 million SKU rationalization charge.
• Income from operations for the nine months was $29.4 million, compared to a loss from operations of $(29.4) million in 2025; the prior period included a $33.2 million non-cash goodwill impairment charge.
• Net loss for the quarter was $(4.2) million, or $(0.19) per diluted share, compared to a net loss of $(1.2) million, or $(0.05) per diluted share in 2025.
• Net income for the nine months was $10.6 million, or $0.47 per diluted share, compared to a net loss of $(45.1) million, or $(2.08) per diluted share in 2025.
• Adjusted income from operations for the quarter was $13.8 million, compared to $11.5 million in 2025.
• Adjusted income from operations for the nine months was $59.8 million, compared to $11.5 million in 2025.
• Adjusted net income for the quarter was $8.4 million, or $0.37 per diluted share, compared to $2.5 million, or $0.11 per diluted share in 2025.
• Adjusted net income for the nine months was $35.3 million, or $1.57 per diluted share, compared to an adjusted net loss of $(5.4) million, or $(0.25) per diluted share in 2025.
• Adjusted EBITDA for the trailing twelve months ended September 30, 2026, was $84.5 million.
• Liquidity as of September 30, 2026, was $123.3 million, consisting of $5.9 million in cash and cash equivalents, $96.4 million available under the ABL Agreement, and $21.0 million available under the Receivables Purchase Agreement.

Guidance and Future Outlook:

• Full-year 2026 net sales guidance was updated to $660 million to $700 million, up from the previous range of $650 million to $700 million.
• Full-year 2026 income from operations guidance was lowered to $42.5 million to $45 million, down from the previous range of $48 million to $50.5 million.
• Full-year 2026 net income guidance was lowered to $19 million to $20.5 million, down from the previous range of $23 million to $24.5 million.
• Full-year 2026 diluted income per common share guidance was lowered to $0.84 to $0.91, down from the previous range of $1.03 to $1.10.
• Full-year 2026 adjusted income from operations guidance remains unchanged at $81.5 million to $84 million.
• Full-year 2026 adjusted net income guidance remains unchanged at $46 million to $47.5 million.
• Full-year 2026 adjusted diluted income per common share guidance was adjusted to $2.04 to $2.11, down from the previous range of $2.06 to $2.13.
• Full-year 2026 adjusted EBITDA guidance remains unchanged at $90.5 million to $93 million.
• Management indicated that the 2026 refinancing lowered borrowing costs and strengthened financial flexibility.
• Management plans to share capital allocation strategy and 2027 tailwinds at an Investor Day on December 1st.

Business Segments and Product Lines:

• International sales grew 18.8% in the third quarter, with the segment approaching breakeven as Project Concord takes hold.
• Home décor continues to grow.
• The Farberware relaunch is performing well.
• The Dollar General partnership, launched in 2024, is on track to approach $20 million in sales for the year.
• SKU rationalization charges of $3.3 million were incurred in the third quarter, including $2.0 million related to the U.S. segment and $1.3 million related to the International segment.
• Warehouse relocation and redesign expenses were $5.3 million in the quarter and $7.2 million for the nine months, related to the U.S. segment.

Market and Competitive Landscape:

• The company operates as a leading global designer, developer, and marketer of branded consumer products used in the home.
• The company markets products under well-known kitchenware brands including Farberware, KitchenAid, Sabatier, Amco Houseworks, Chef'n, Chicago Metallic, Copco, Fred & Friends, Houdini, KitchenCraft, Kamenstein, La Cafetière, MasterClass, Misto, Swing-A-Way, Taylor Kitchen, Rabbit, and Dolly.
• Tableware and giftware brands include Mikasa, Pfaltzgraff, Fitz and Floyd, Empire Silver, Gorham, International Silver, Towle Silversmiths, Wallace, Wilton Armetale, V&A, Royal Botanic Gardens Kew, Year & Day, Royal Leerdam, and ONIS.
• Home solutions brands include BUILT NY, S'well, Taylor Bath, Taylor Weather, Elements, Planet Box, and Dolly.
• The company provides exclusive private label products to leading retailers worldwide.

Risks and Challenges:

• Risks include the ability to comply with credit agreement requirements, maintain adequate liquidity, and deleverage the balance sheet.
• Potential impairments to goodwill and intangible assets remain a risk.
• The business is highly seasonal, impacting cash flows.
• Challenges include geopolitical factors, tariffs, trade policy changes, and economic conditions affecting customer purchasing practices.
• Supply chain disruptions, commodity shortages, and price volatility for raw materials and energy are potential risks.
• Dependence on third-party manufacturers and the ability to successfully integrate acquired businesses are cited as challenges.
• Fluctuations in foreign exchange rates and the significant influence of the largest stockholder are noted risks.

Management Commentary and Tone:

• CEO Rob Kay stated the company delivered net sales growth of 3.4% and expanded gross margin by 140 basis points in the third quarter.
• Management expressed confidence that momentum continues across key parts of the business.
• Management noted that the new $20 million share repurchase authorization provides additional flexibility to return capital to shareholders.
• Management highlighted that the 2026 refinancing lowered borrowing costs and strengthened financial flexibility.

Other Key Points:

• The Board authorized an increase to the share repurchase program to $20 million on November 3, 2026, exclusive of fees and commissions.
• The Board declared a quarterly dividend of $0.0425 per share payable on February 12, 2027, to stockholders of record on January 29, 2027.
• The company incurred a $2.5 million loss on extinguishment of debt during the nine-month period.
• The company received a $40.1 million tariff refund benefit during the nine-month period.
• A conference call is scheduled for November 5, 2026, at 11:00 a.m. Eastern Time.