Lifetime Brands Weathers Difficult 2018 Fourth Quarter, Reports Optimism for 2019
For the year 2018, the company achieved consolidated net sales of $704.5 million, an increase of $125 million, or 21.6%, compared to 2017.
Lifetime Brands, Inc., parent company of Pfaltzgraff, Mikasa and others, recently reported its financial results for the fourth quarter and year ended December 31, 2018. In the fourth quarter, consolidated net sales reached $228.3 million, an increase of $45.5 million, or 24.9%, compared to consolidated net sales of $182.8 million for the corresponding period in 2017. In constant currency, which excludes the impact of foreign currency fluctuations, consolidated net sales increased $46.4 million, or 25.5%.
For the year 2018, the company achieved consolidated net sales of $704.5 million, an increase of $125 million, or 21.6%, compared to consolidated net sales of $579.5 million in 2017. In constant currency, consolidated net sales increased $122.3 million, or 21%. Net loss for the year was $1.7 million, compared to net income of $2.2 million 2017.
“Our fourth quarter performance is not what we expect to deliver to our shareholders,” said Robert Kay, CEO. “We believe these results were in part due to significant macroeconomic events, including European softness primarily due to Brexit, and the inconsistent implementation of a new U.S. tariff program that prevented us from passing along timely price increases. Additionally, certain of our North American distribution channels delivered disappointing sales due to stocking levels and inventory management decisions by customers, including our largest e-commerce customer. While these events had an adverse impact on our results, we are optimistic that they are predominantly singular in nature.
“Importantly and encouragingly, the early results we are seeing in 2019 are positive, reflecting both a normalization of customer ordering behavior and promising performance of some of our newer products. We are confident that the strategic accomplishments achieved in 2018—which include the completion of the Filament integration, a reorganization of our European operations, and meaningful cost reduction across the organization—will be critical to improving Lifetime Brands’ results and profitability as we move forward.”
Additional details are available at www.lifetimebrands.com.