Lifetime Brands Reports Decline in Q2 2025 Financial Performance with Net Loss of $39.7 Million

Lifetime Brands, Inc. reported a decline in financial performance for the second quarter of 2025, with net sales of $131.9 million, down 6.9% from $141.7 million in the same period last year. For the first half of 2025, the company generated $271.9 million in net sales, a decrease of 4.2% compared to $283.9 million in the first half of 2024. The U.S. segment, which accounts for the majority of sales, saw a more pronounced decline, with sales falling 8.6% to $119.3 million in the second quarter. The company attributed the overall decrease to lower sales in its Tableware and Home Solutions categories, despite a slight increase in Kitchenware sales.

The company's gross margin for the second quarter was $50.8 million, or 38.6% of net sales, compared to $54.6 million, or 38.5%, in the prior year. The U.S. segment's gross margin also improved slightly to 39.1%, driven by a favorable customer mix. However, the company faced increased distribution expenses, which rose to $17.3 million, or 13.1% of net sales, up from 10.6% in the previous year. This increase was attributed to higher fixed costs and software expenses related to a new warehouse management system.

A significant operational challenge for Lifetime Brands was a $33.2 million non-cash goodwill impairment charge recognized in the second quarter, reflecting a decline in the market valuation of the company's common stock and revised forecasts for its U.S. reporting unit. This impairment resulted in a net loss of $39.7 million for the quarter, compared to a loss of $18.2 million in the same period last year. The basic loss per share was $(1.83), compared to $(0.85) in the prior year.

In terms of strategic developments, the company is relocating its east coast distribution facility from Robbinsville, NJ, to Hagerstown, MD, with expected one-time costs of up to $7 million. This move is part of a broader initiative to streamline operations and improve efficiency. Additionally, Lifetime Brands launched Project Concord, aimed at enhancing growth and cost structure in its International segment, which has already seen a reorganization of its workforce.

Looking ahead, Lifetime Brands anticipates that its liquidity, bolstered by cash reserves and available credit, will support its operations through the next twelve months. However, the company remains cautious about potential impacts from ongoing macroeconomic conditions, including tariffs and supply chain disruptions, which could affect consumer spending and overall business performance.