Lifetime Brands Inc Reports Second Quarter 2024 Financial Results
Intellectia.AI1970-01-01
Lifetime Brands, Inc. Reports Second Quarter 2024 Financial Results
Lifetime Brands, Inc. (NASDAQ: LCUT), a leading global designer, developer, and marketer of a broad range of branded consumer products used in the home, announced its financial results for the quarter ending June 30, 2024.
Key Financial Metrics
| Metric | Q2 2023 | Q2 2024 | YoY Change |
|---|---|---|---|
| Total Revenue | $146.4M | $141.7M | -3.2% |
| Gross Margin | $56.0M / 38.2% | $54.6M / 38.5% | -2.5% |
| Net Loss | $(6.5)M | $(18.2)M | N/A |
| EPS | $(0.31) | $(0.85) | N/A |
| Adjusted Net Loss | $(0.3)M | $(0.6)M | N/A |
| Adjusted EPS | $(0.02) | $(0.03) | N/A |
Interpretation: Lifetime Brands reported a year-over-year decline in total revenue by 3.2% for Q2 2024, reflecting weakened market demand due to macroeconomic pressures. Despite the decline in revenue, the company's gross margin slightly increased indicating more efficient operational performance. However, the company experienced a significant increase in net loss primarily due to a non-cash charge related to its Grupo Vasconia investment.
Revenue Performance by Segment
| Segment | Q2 2023 | Q2 2024 | YoY Change |
|---|---|---|---|
| U.S. Consumer Products | N/A | N/A | N/A |
| International Consumer Products | N/A | N/A | N/A |
| E-commerce Channel | N/A | Growth | N/A |
Interpretation: While detailed segment financials were not provided, the company's e-commerce channel showed growth within its core U.S. market, which is a positive indicator of shifting consumer behavior and successful digital strategy execution.
Comments from Company Officers
Rob Kay, CEO, remarked, "Our results for the second quarter were in line with our expectations even though macroeconomic pressures led to weakened demand across end markets. Despite these challenges, we were able to grow share across the majority of our categories, deliver growth in our e-commerce channel in our core U.S. market, and expand our gross margins." He further expressed confidence in the company's long-term growth strategy and reiterated the full-year 2024 guidance, except for net loss due to the non-cash charge on its Grupo Vasconia investment.
Dividends and Share Repurchase Program
On August 6, 2024, the Board of Directors declared a quarterly dividend of $0.0425 per share, payable on November 15, 2024 to stockholders of record on November 1, 2024.
Forward Guidance
Lifetime Brands is reiterating its full-year 2024 guidance across multiple metrics including net sales, income from operations, adjusted income from operations, adjusted net income, and adjusted EBITDA. The guidance for net loss has been revised to reflect the $14.2 million non-cash loss on the Grupo Vasconia investment.
Stock Price Movement
After the earnings release, the company's stock price experienced a slight decline of approximately 0.07%.
Conclusion: Despite challenging market conditions, Lifetime Brands has shown resilience in maintaining gross margins and growing its e-commerce segment. The company remains focused on its strategic initiatives and long-term growth potential, supported by a strong balance sheet and robust cash flow generation.
The report has been organized into a more readable format, and unnecessary columns have been removed from the tables.
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