Lifetime Brands Announces Increased Consolidated Net Sales
Consolidated gross margin as a percentage of net sales for the three months ended June 30 increased to 39.1% from 37.7% in the 2009 period. Wholesale gross margin increased by 120 basis points to 37.2% from 36% in the 2009 period, due to more favorable product mix. Gross margin for the Direct-to-Consumer Segment decreased to 66.8% from 70.8%, largely as a result of increased promotional activity and free shipping in the second quarter of 2010.
Consolidated EBITDA for the second quarter of 2010 was $6.1 million vs. $4.3 million for the 2009 period. Consolidated EBITDA for the 12 months ended June 30 was $39 million, compared to $20.5 million for the 12 months ended June 30, 2009.
“Lifetime’s business during the quarter continued to improve, reflecting cautious optimism by retailers and stronger confidence among consumers,” said Jeffrey Siegel, chairman, president and CEO. “Based on our current order flow, we expect these trends to continue during the second half of the year.
“The company’s commitment to lower overall merchandise inventories by reducing the number of SKUs and by shortening the period between procurement and sale is ongoing; however, in recent months, global trade conditions have resulted in longer lead times at factories in Asia and in shortages of containers and ships. To ensure that we will have sufficient levels of merchandise on hand to fulfill customers’ orders in the third and fourth quarters, we temporarily accelerated the timing of our imports. Even with the accelerated inventory build, inventories of finished goods at June 30 declined to $111.8 million, as compared to $119.2 million at June 30, 2009. We foresee carrying somewhat higher than normal inventory levels into the fourth quarter of 2010.”
For more information, visit www.lifetimebrands.com.