Lifetime Brands Q2 net loss widens on impairment charge
Overview
Lifetime Brands Q2 sales fall 6.9% yr/yr, missing analyst expectations
Co reports significant net loss due to $33.2 mln goodwill impairment
Lifetime Brands maintains strong liquidity, reduces SG&A expenses for cost efficiency
Outlook
Company expects to manage near-term volatility with strong liquidity
Lifetime Brands focuses on long-term growth despite macroeconomic pressures
Company views current market challenges as non-recurring
Lifetime Brands adapting to tariff-related headwinds
Result Drivers
GROSS MARGIN - Co maintained gross margin at 38.6% due to strong pricing strategy and supply chain management
SG&A REDUCTION - Reduced selling, general and administrative expenses by 2.1% to improve cost efficiency
GOODWILL IMPAIRMENT - $33.2 mln non-cash goodwill impairment charge due to tariff impacts
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Miss | $131.86 mln | $138.10 mln (2 Analysts) |
Q2 EPS | -$1.83 | ||
Q2 Adjusted Net Income | Miss | -$10.90 mln | -$4 mln (1 Analyst) |
Q2 Net Income | -$39.70 mln | ||
Q2 Income From Operations | Miss | -$37.21 mln | -$200,000 (1 Analyst) |
Q2 Pretax Profit | Miss | -$42.48 mln | -$5.40 mln (1 Analyst) |
Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the appliances, tools & housewares peer group is "hold."
Wall Street's median 12-month price target for Lifetime Brands Inc is $6.50, about 35.7% above its August 6 closing price of $4.18
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 7 three months ago
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