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1. Company Snapshot

1.a. Company Description

Lifetime Brands, Inc.designs, sources, and sells branded kitchenware, tableware, and other products for use in the home in the United States and internationally.The company provides kitchenware products, including kitchen tools and gadgets, cutlery, kitchen scales, thermometers, cutting boards, shears, cookware, pantryware, spice racks, and bakeware; and tableware products comprising dinnerware, stemware, flatware, and giftware.


It also provides home solutions, such as thermal beverageware, bath scales, weather and outdoor household, food storage, neoprene travel, and home décor products.The company owns or licenses various brands, including Farberware, Mikasa, Taylor, KitchenAid, KitchenCraft, Pfaltzgraff, BUILT NY, Rabbit, Kamenstein, and MasterClass.It serves mass market merchants, specialty stores, commercial stores, department stores, warehouse clubs, grocery stores, off-price retailers, food service distributors, pharmacies, food and beverage outlets, and e-commerce.


The company sells its products directly, as well as through its own websites.Lifetime Brands, Inc.was founded in 1945 and is headquartered in Garden City, New York.

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1.b. Last Insights on LCUT

Negative drivers behind Lifetime Brands' recent performance include a Q1 loss of $0.25 per share, exceeding the Zacks Consensus Estimate of a loss of $0.14. The company's inability to meet revenue estimates is a concerning trend, particularly given the year-over-year decline in earnings. Additionally, the recent Annual Meeting of Stockholders, which concluded on June 18, 2025, may have sparked investor concerns regarding the company's governance and direction.

1.c. Company Highlights

2. Lifetime Brands' Q3 2025 Earnings: Navigating Tariff Volatility

Lifetime Brands reported consolidated sales of $171.9 million, a decline of 6.5% year-over-year, with U.S. segment sales decreasing by 7.1% to $158.1 million and International segment sales increasing by 1.5% to $13.8 million. The consolidated gross margin decreased to 35.1% from 36.7% in the prior year, primarily due to the company's pricing actions designed to maintain gross margin dollars. Adjusted EPS came in at $0.11, beating estimates of $0.1. The company's SG&A expenses decreased by 8.5% to $35.5 million, driven by cost controls implemented earlier in the year.

Publication Date: Nov -12

📋 Highlights
  • Shipment Decline in Line with Industry:: Lifetime’s shipments declined ~6.1%, matching the general merchandise category’s Q3 drop.
  • Tariff Mitigation Strategy Effective:: Sourcing diversification and pricing actions limited sales decline to 6.5% despite $171.9M revenue.
  • Gross Margin Stability:: Consolidated margin fell to 35.1% from 36.7%, but international margin improved to 35.5% due to favorable mix.
  • SG&A Cost Reduction:: Total SG&A dropped 8.5% to $35.5M, driven by $1.5M U.S. and $1.1M international savings.
  • Strong Liquidity Position:: $51M liquidity reported, with $47.2M trailing adjusted EBITDA, despite $13M inventory cost increase from tariffs.

Tariff Mitigation Strategy

Lifetime Brands has effectively navigated the challenging tariff landscape by expanding sourcing in Mexico and Southeast Asia, implementing targeted pricing actions, and tightening cost controls. The company's tariff mitigation strategy is now fully in place and performing as intended, allowing it to maintain gross margin dollars despite the decline in gross margin percentage. As Rob Kay, CEO, noted, "The steps we took early in the year... have all proven effective."

Balance Sheet and Liquidity

Despite the challenges posed by high tariff rates, Lifetime Brands' balance sheet remains strong, with liquidity of approximately $51 million at quarter-end. The company's debt level increased due to seasonal working capital needs, including an additional $13 million of inventory costs due to higher tariffs. Adjusted EBITDA for the trailing 12-month period ended September 30 was $47.2 million, indicating a solid financial position.

Valuation and Growth Prospects

With a P/E Ratio of -2.27 and an EV/EBITDA multiple of 36.19, the market is pricing in significant uncertainty. Analysts estimate revenue growth of 2.5% next year, indicating a potential rebound in the company's financial performance. The company's proactive actions and deep expertise in navigating periods of uncertainty are expected to favorably position Lifetime Brands for above-average growth in a return to a normal operating environment.

Opportunities for Growth

Lifetime Brands is now looking at opportunities that fit its current footprint, leveraging lower market valuations and meaningful synergies and cost eliminations to secure good valuations. The company's strong financial position and ability to invest selectively in areas that will drive long-term profitability and shareholder value are expected to drive growth.

3. NewsRoom

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Lifetime Brands, Inc. (LCUT) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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Lifetime Brands (LCUT) Q3 Earnings Surpass Estimates

Nov -06

Source: zacks.com

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Lifetime Brands Announces Third Quarter 2025 Financial Results Release Date and Conference Call

Oct -30

Source: globenewswire.com

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Lifetime Brands, Inc. (LCUT) Q2 2025 Earnings Call Transcript

Aug -09

Source: seekingalpha.com

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Lifetime Brands (LCUT) Sales Drop 7%

Aug -07

Source: fool.com

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Lifetime Brands (LCUT) Reports Q2 Loss, Misses Revenue Estimates

Aug -07

Source: zacks.com

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Lifetime Brands, Inc. Reports Second Quarter 2025 Financial Results

Aug -07

Source: globenewswire.com

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Lifetime Brands Announces Second Quarter 2025 Financial Results Release Date and Conference Call

Jul -31

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.00%)

6. Segments

United States

Expected Growth: 3.0%

Strong demand for home and kitchen products, driven by increasing consumer spending and a growing trend towards home cooking, contributes to Lifetime Brands' 3.0% growth in the United States. Additionally, the company's strategic acquisitions and product innovations have expanded its market share, further fueling growth.

International

Expected Growth: 3.0%

International segment of Lifetime Brands, Inc. grew 3.0% driven by increasing demand for household and kitchen products in emerging markets, expansion into new geographies, and strategic partnerships with local distributors. Additionally, the company's focus on e-commerce and digital marketing initiatives contributed to the growth.

7. Detailed Products

Kitchen Utensils and Gadgets

Lifetime Brands offers a wide range of kitchen utensils and gadgets from brands like KitchenAid, Cuisinart, and more.

Cutlery and Flatware

Lifetime Brands provides high-quality cutlery and flatware from brands like Farberware, Hoffritz, and more.

Home Decor and Furniture

Lifetime Brands offers a variety of home decor and furniture products from brands like Pfaltzgraff, Mikasa, and more.

Tabletop and Entertaining

Lifetime Brands provides a wide range of tabletop and entertaining products from brands like Spode, Royal Worcester, and more.

Kitchen Electrics

Lifetime Brands offers a variety of kitchen electric products from brands like Cuisinart, KitchenAid, and more.

Food Storage and Organization

Lifetime Brands provides innovative food storage and organization products from brands like OXO, Cuisinart, and more.

8. Lifetime Brands, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Lifetime Brands, Inc. is moderate due to the presence of alternative products in the market, but the company's strong brand recognition and product differentiation mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low for Lifetime Brands, Inc. due to the company's diverse customer base and lack of concentration, making it difficult for individual customers to exert significant pressure.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate for Lifetime Brands, Inc. due to the presence of multiple suppliers, but the company's large scale of operations and long-term contracts help to mitigate this threat.

Threat Of New Entrants

The threat of new entrants is low for Lifetime Brands, Inc. due to the high barriers to entry, including significant capital requirements and the need for established distribution networks.

Intensity Of Rivalry

The intensity of rivalry is high for Lifetime Brands, Inc. due to the presence of several established competitors in the market, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 48.22%
Debt Cost 10.81%
Equity Weight 51.78%
Equity Cost 10.81%
WACC 10.81%
Leverage 93.14%

11. Quality Control: Lifetime Brands, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Value: 5.5

Growth: 5.4

Quality: 5.7

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Momentum: 8.5

Volatility: 4.3

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Lifetime Brands

A-Score: 3.8/10

Value: 8.1

Growth: 2.2

Quality: 2.3

Yield: 7.0

Momentum: 1.5

Volatility: 2.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

4.27$

Current Price

4.27$

Potential

-0.00%

Expected Cash-Flows