Lifetime Brands Reports Q1 2025 Financial Results with $4.2 Million Net Loss

Lifetime Brands, Inc. reported its financial results for the first quarter of 2025, revealing a net loss of $4.2 million, or $0.19 per share, compared to a net loss of $6.3 million, or $0.29 per share, in the same period last year. The company's net sales for the quarter were $140.1 million, a decrease of 1% from $142.2 million in the prior year. The decline in revenue was attributed to a decrease in sales across its U.S. segment, which generated $128.5 million, down from $130.5 million in the previous year. The international segment also saw a slight decline, with sales of $11.6 million compared to $11.8 million in the prior year.

The company's gross margin decreased to $50.6 million, or 36.2% of net sales, from $57.5 million, or 40.4% of net sales, in the prior year. This decline was primarily driven by increased costs of sales, which rose to $89.4 million from $84.7 million. Distribution expenses also increased to $18.1 million from $16.2 million, while selling, general, and administrative expenses decreased to $31.5 million from $39.5 million, reflecting cost-cutting measures. The company reported an income from operations of $1.1 million, down from $1.8 million in the previous year.

In terms of strategic developments, Lifetime Brands has been proactive in managing its inventory levels in anticipation of potential tariffs that took effect in April 2025. The company increased its inventory to $210.1 million as of March 31, 2025, compared to $202.4 million at the end of 2024. This increase is part of a strategy to mitigate the impact of tariffs on its supply chain and cost structure. The company is also exploring options to increase prices to customers and negotiate costs with suppliers to offset rising import costs.

Operationally, Lifetime Brands reported a significant increase in cash and cash equivalents, which rose to $10.4 million from $2.9 million at the end of 2024. The company’s total assets decreased to $594.6 million from $634.3 million, while total liabilities also decreased to $368.9 million from $404.4 million. The company’s employee headcount remained stable, and it continues to monitor market conditions closely. Looking ahead, Lifetime Brands anticipates that its sales will be heavily influenced by seasonal trends, with a majority of sales typically occurring in the third and fourth quarters. The company remains focused on adapting to market conditions and managing its operational costs effectively.