Lifetime Brands Reports $26.9 Million Net Loss and 5.1% Sales Decline for Fiscal Year 2025

Lifetime Brands, Inc. reported a net loss of $26.9 million for the fiscal year ending December 31, 2025, compared to a loss of $15.2 million in 2024. The company's net sales decreased by 5.1% to $647.9 million, down from $683.0 million in the previous year. This decline was attributed to lower sales volumes and softening consumer demand, exacerbated by increased prices and tariff-related uncertainties. The gross margin also fell to 37.1% from 38.2%, reflecting higher product costs and tariffs that impacted profitability.

In terms of operational changes, Lifetime Brands undertook a significant restructuring initiative known as Project Concord, aimed at streamlining its international operations. This included a reorganization of the merchandising and sales workforce, resulting in $0.3 million in restructuring expenses for the year. Additionally, the company announced plans to relocate its East Coast distribution facility from Robbinsville, New Jersey, to a new site in Hagerstown, Maryland, with expected costs of approximately $9.3 million for capital expenditures and $7 million in exit costs.

The company’s U.S. segment, which accounted for the majority of sales, reported a 5.7% decrease in revenue to $591.2 million, primarily driven by declines in kitchenware and home solutions product categories. The international segment, however, saw a slight increase in sales to $56.7 million, attributed to favorable foreign currency translation effects, although in constant currency, sales decreased slightly. The company continues to face challenges in managing its supply chain, particularly due to its reliance on international suppliers, which exposes it to various risks including tariffs and geopolitical tensions.

Looking ahead, Lifetime Brands anticipates continued margin pressure into the first half of 2026 as it works through higher-cost inventory affected by tariffs. The company is actively monitoring changes in U.S. trade policies and their potential impacts on its operations. Despite the challenges, management remains focused on leveraging its brand portfolio and innovation to drive future growth, while maintaining a cautious approach to capital expenditures and operational efficiency.