Lifetime Brands Sees Sales Increase in 2018 Third Quarter
Consolidated net sales for Lifetime Brands in the 2018 third quarter were $209.4 million, compared to $166 million for the third quarter of 2017.
Lifetime Brands, Inc., parent company of Pfaltzgraff®, Mikasa®, and other tableware and glassware brands, recently reported its financial results for the third quarter ended September 30, 2018. Consolidated net sales in the 2018 third quarter were $209.4 million, compared to $166 million for the third quarter of 2017. In constant currency, which excludes the impact of foreign exchange fluctuations, consolidated net sales increased $43.7 million, or 26.3%, compared to the 2017 third quarter.
For the first nine months of 2018, consolidated net sales were $476.3 million, compared to $396.7 million for the corresponding period in 2017. In constant currency, net sales increased $75.8 million, or 18.9%, compared to the corresponding period in 2017.
“Our business generated solid results in the third quarter as we began to show the strength of the Lifetime-Filament combination, consistent with our original expectations for both the third and fourth quarters,” said Rob Kay, CEO. “These results were driven by the progress we have been achieving in integrating our two organizations and accelerating our portfolio realignment to create a more profitable business with enhanced focus on margin and growth. In the third quarter, our expanded and more diversified business generated a 26% increase in net sales, a 10% increase in adjusted diluted EPS and a 45% increase in EBITDA (excluding the limitation on non-recurring charges under our bank agreement). This is a strong indication that the plan we developed to re-position Lifetime with improved profitability is producing meaningful results.
“Over the past eight months, we have been approaching the integration of Lifetime and Filament in a systematic and disciplined fashion and, in the process, have continued to increase the cost synergies that we will generate. We now expect to realize almost $11 million in annualized savings with the full impact being realized in 2019—an increase of more than one-third from our original target. Additionally, we have reorganized our e-commerce and digital assets to optimize this fast-growing part of our business and finalized our previously announced integration plans to consolidate our European operations in order to create a single, more profitable business.
“We continue to monitor the tariffs imposed by the U.S. on imports from China. Fortunately, we believe we are well equipped to mitigate their financial impact as we began preparing for this possibility well in advance of their enactment. Through a series of actions and initiatives, we expect that, except for a short adjustment period after each tariff implementation date, we will mitigate their impact on our net income and EBITDA.
“As planned, we began shipping in the third quarter several large customer orders that are part of ongoing business awards and will contribute to a strong fourth quarter performance and drive growth across several product categories. We also remain on track for the ‘go live’ date for our ERP systems integration in January 2019.”
Additional details are available at https://lifetimebrands.com.