Lifetime Brands Stock Earnings Reports

Gross Margin Improvement

Expanded by 130 basis points, reaching 37.7%.

Net Income

Reported at $8.9 million ($0.41 per diluted share), up from $2.7 million ($0.13 per diluted share) in the same period last year. Adjusted net income was $12 million ($0.55 per diluted share) compared to $6.3 million ($0.29 per diluted share) in Q4 2023.

Performance Drivers

• Significant growth noted in e-commerce, which accounted for 24% of total sales in Q4 and 20% for the full year.

Sales Channel Insights

• E-commerce Growth: US e-commerce sales grew 10% YoY in Q4, contributing to a full-year increase of 4.2% to $137.7 million.
• Competition Challenges: Noted softness in the mass channel affected by loss of market share in KitchenAid products.

International Segment

• Sales Performance: International sales grew 7.2% YoY, helped by new regional brand launches and a revamped e-commerce strategy.
• Operating Loss: Reported an EBIT loss of $10.5 million for the international segment, with expectations of breakeven by 2026 driven by Project Concorde.

Product Initiatives

• Dolly Parton Program: Delay in shipments to Dollar General expected to generate $4 million in sales in Q1 2025. Anticipates total sales from this initiative to double in 2025.
• New Launches: Emphasis on expanding the Dolly Parton brand into adjacent product categories.

Operational Changes

• Distribution Center Relocation: Transitioning from New Jersey to a larger facility in Maryland, aimed at operational efficiency and cost savings, supported by $13 million in government subsidies.

Tariff Strategy

• Navigating Tariffs: Discussion of proactive strategies to mitigate tariff impacts, including diversification of production outside China, with an aim to reduce dependency to below 50% by the end of 2025.
• Pricing Power: Anticipation that price increases due to tariffs will likely be passed onto consumers, though consumer sentiment remains a concern for potential sales impact.

Outlook and Guidance

• Investor Day: Scheduled for November 2025 to discuss long-term strategy and financial outlook.
• Project Concorde: A comprehensive program initiated to streamline operations and target profitability in international markets, with improvements expected by 2025.

Key Takeaway

Lifetime Brands exhibited solid financial growth in Q4 2024, particularly through e-commerce, yet faces challenges in specific retail channels and must navigate the evolving effects of tariffs. Long-term strategies, including new product launches and distribution efficiency improvements, position the company for potential growth and market share expansion in the coming years. Investors should monitor upcoming developments and the execution of their new operational initiatives.