Challenging Fourth Quarter Negatively Impacts Lifetime Brands’ 2017 Financial Results
Consolidated net sales for the year 2017 were $579.5 million, a decrease of $13.1 million (2.2%), compared to consolidated net sales of $592.6 million for 2016.
Lifetime Brands, Inc. recently reported its financial results for the fourth quarter and year ended December 31, 2017. Consolidated net sales in the fourth quarter were $182.8 million, a decrease of $10.7 million (5.6%), compared to consolidated net sales of $193.5 million for the corresponding period in 2016. In constant currency, which excludes the impact of foreign exchange fluctuations, consolidated net sales decreased $12.7 million, or 6.5%. Income from operations was $10.9 million in the 2017 fourth quarter, compared to $21.8 million in the prior year’s quarter.
Consolidated net sales for the year 2017 were $579.5 million, a decrease of $13.1 million (2.2%), compared to consolidated net sales of $592.6 million for 2016. In constant currency, consolidated net sales decreased $9.7 million, or 1.6%. Income from operations was $15.2 million, compared to $27.1 million in the prior year.
“While generally consistent with prior disclosure, our fourth quarter operating results were disappointing, resulting in full year 2017 performance that was below our expectations,” said Jeffrey Siegel, executive chairman. “The fourth quarter shortfall was directly attributable to sales declines at two key retailers; one reflecting a storewide reduction of inventory weeks on hand and the other due to two 2016 promotions that were not repeated in 2017. In addition, we decided not to fulfill orders due to credit concerns at two other retailers.
“We believe the changes we have made in our UK operations, including combining Kitchen Craft and Creative Tops and closing our Netherlands operations, will create operating efficiencies and enable each business effectively to leverage the other’s traditional customer base, thereby resulting in significantly improved results for 2018.
“Our recent acquisition of Fitz and Floyd, with its popular assortment of tabletop products and decorative ceramic collections, added to fourth quarter sales in our Tableware division. As we expected, Fitz and Floyd was accretive to our 2017 results.”
“As Lifetime’s new CEO, I am excited to be working with Jeff and the combined Lifetime and Filament team to drive value creation through growth and increased efficiencies,” said Robert Kay, CEO. “We have just brought together two industry leaders that represent innovation, execution and best-in-class capabilities in sales, marketing, design, creative, finance and operations. During our first quarter earnings report, we will provide a roadmap laying out our strategy and guidance for the full year 2018. This will include a discussion of ongoing initiatives such as Lifetime Next, as well as the implementation of over $8 million of cost savings resulting from the Filament merger, which closed on March 2.”
For more information, visit www.lifetimebrands.com.