First Quarter 2018 Net Sales Flat for Lifetime Brands as Filament Integration Continues
In constant currency, which excludes the impact of foreign exchange fluctuations, consolidated net sales increased $2.2 million (1.9%), compared to consolidated net sales in the 2017 first quarter.
Lifetime Brands, Inc. recently reported its financial results for the first quarter ended March 31, 2018. Consolidated net sales were $118.2 million, compared to consolidated net sales of $113.4 million for the corresponding period in 2017. In constant currency, which excludes the impact of foreign exchange fluctuations, consolidated net sales increased $2.2 million (1.9%), compared to consolidated net sales in the 2017 first quarter.
Loss from operations in the 2018 first quarter was $13.3 million, compared to a loss of $1.9 million for the corresponding period in 2017. The net loss was $11.6 million, or $0.70 per diluted share, compared to a net loss of $1.3 million, or $0.09 per diluted share, in the corresponding period in 2017. Adjusted net loss was $8.3 million, or $0.50 per diluted share, compared to a loss of $1.3 million, or $0.09 per diluted share, in the 2017 first quarter.
“During the first quarter, we completed the acquisition of Filament Brands and embarked on an ambitious program to transform our company by building on our newly expanded and diversified business,” said Jeffrey Siegel, executive chairman. “The first quarter includes the results from Filament since March 2, 2018, when the acquisition was completed.
“Our financial results for the quarter reflect the rapidly changing retail environment. In addition, as we have noted in past earnings releases, we believe first quarter results are not indicative of the outlook for the full year, as our most significant initiatives are scheduled for the third and fourth quarters. These plans are reflected in the financial guidance we are providing for 2018.
“As we begin to integrate and benefit from the combination of Filament into Lifetime and also begin to take advantage of our expanded portfolio of leading brands, increased scale, new sales opportunities and added efficiencies, we firmly believe that Lifetime and its stakeholders will benefit from having the most powerful platform in housewares across all channels, including e-commerce.”
According to Rob Kay, CEO, “In the two months that has elapsed since Lifetime and Filament merged, we have begun taking many steps to align our business model and create a strong and unified company. Our initial actions have been focused on integrating and consolidating our U.S. organization, including certain business units, our salesforce, our e-commerce/retail direct activities and IT, and on integrating our operations in China. We already have announced our integration plans across our company and have identified and notified impacted functions and individuals.
“We are pleased with the rapid progress we have made to date and believe we are on track to exceed the financial targets we announced in conjunction with the merger. As noted then, we expect to realize the bulk of the annualized $8.1 million in integration savings starting in 2019, when we go live with our SAP migration. Throughout 2018, we will continue to move swiftly to implement our comprehensive plan for developing a stronger, more streamlined and even more effective Lifetime Brands.”
For more information, visit www.lifetimebrands.com.