Earnings release
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Lifetime Brands , Inc. Reports Second Quarter 2026 Financial Results August 6 , 2026 at 7:04 AM EDT Declares Regular Quarterly Dividend GARDEN CITY , N.Y. , Aug. 06 , 2026 ( GLOBE NEWSWIRE ) -- Lifetime Brands , Inc. ( NasdaqGS : LCUT ) , a leading global designer , developer and marketer of a broad range of branded consumer products used in the home , today reported its financial results for the quarter ended June 30 , 2026 . Rob Kay , Lifetime's Chief Executive Officer , commented , " Our second quarter results were in line with expectations and reflected notable growth compared to the prior year period that had been adversely impacted by the U.S. government implementation of initial high tariff rates across many countries . Net sales were up 7.4 % and we saw significant earnings growth that includes the expected recovery of tariffs we paid in 2025. We will put that capital to work , paying the associated taxes , restoring reductions that had been implemented in 2025 to increase our bottom line against the impact from these tariff expenses and to fund the investments to bolster competitiveness and restore the balance sheet strength which we have used to fund the carrying cost of tariffs paid . Accordingly , since the end of the first quarter , we have repaid $ 40 million of term debt using cash generated from operations and the receipt of tariff refunds . The underlying business performed well despite softer end markets , led by growth in warehouse club programs and e - commerce . The relaunch of our redesigned Farberware line is off to an encouraging start and we extended our Dolly Parton license for an additional three years , reflecting the continued strength of that partnership . Our International segment again narrowed its losses and remains on track to achieve break - even in 2026 , and the Hagerstown facility is online . While this new facility is experiencing startup challenges , we remain targeted for full operation by the fourth quarter this year . For 2026 , we are reaffirming our net sales guidance , and raising earnings guidance to reflect the recognition of the tariff refunds . As previously announced , we look forward to presenting our longer - term strategy at our upcoming Investor Day this December . Second Quarter Financial Results : Consolidated net sales for the three months ended June 30 , 2026 were $ 141.6 million , representing an increase of $ 9.7 million , or 7.4 % , as compared to net sales of $ 131.9 million for the corresponding period in 2025. In constant currency , a non - GAAP financial measure , which excludes the impact of foreign exchange fluctuations and was determined by applying 2026 average rates to 2025 local currency amounts , consolidated net sales increased by $ 9.5 million , or 7.2 % , as compared to consolidated net sales in the corresponding period in 2025. A table reconciling this non - GAAP financial measure to consolidated net sales , as reported , is included below . Gross margin for the three months ended June 30 , 2026 was $ 93.2 million , or 65.9 % , as compared to $ 50.8 million , or 38.6 % , for the corresponding period in 2025. Gross margin for the current period includes a tariff refund benefit of $ 40.1 million . Selling , general and administrative expenses for the three months ended June 30 , 2026 were $ 39.5 million , an increase of $ 2.0 million , or 5.3 % , as compared to $ 37.5 million for the corresponding period in 2025 . Income from operations was $ 31.6 million , as compared to loss from operations of $ ( 37.2 ) million for the corresponding period in 2025. Income from operations for the current period includes a tariff refund benefit of $ 40.1 million . Loss from operations for the prior period included a non - cash goodwill impairment charge of $ 33.2 million related to the U.S. segment . Adjusted income from operations ( 1 ) was $ 41.1 million , as compared to adjusted income from operations of $ 0.9 million for the corresponding period in 2025. The 2026 period included adjustments for acquisition - related intangible amortization expense of $ 4.3 million , acquisition - related diligence expenses of $ 1.0 million , restructuring expenses of $ 2.0 million , and warehouse relocation and redesign expenses of $ 2.2 million . The 2025 period included adjustments for acquisition - related intangible amortization expense of $ 4.4 million , acquisition - related diligence expenses of $ 0.1 million , warehouse relocation and redesign expenses of $ 0.1 million , severance expenses of $ 0.3 million and goodwill impairment charge of $ 33.2 million . Net income was $ 19.6 million , or $ 0.87 per diluted share , as compared to net loss of $ ( 39.7 ) million , or $ ( 1.83 ) per diluted share , in the corresponding period in 2025. Net income for the current period included a pre - tax tariff refund benefit of $ 40.1 million . Net loss for the prior period included a non - cash goodwill impairment charge of $ 33.2 million . Adjusted net income ( 1 ) was $ 26.6 million , or $ 1.18 per diluted share , as compared to adjusted net loss of $ ( 2.6 ) million , or $ ( 0.12 ) per diluted share , in the corresponding period in 2025 . ( 1 ) A table reconciling this non - GAAP financial measure to its most comparable GAAP financial measure , as reported , is included below . Six Months Financial Results : Consolidated net sales for the six months ended June 30 , 2026 were $ 285.1 million , an increase of $ 13.2 million , or 4.9 % , as compared to net sales of $ 271.9 million for the corresponding period in 2025. In constant currency , a non - GAAP financial measure , which excludes the impact of foreign exchange fluctuations and was determined by applying 2026 average rates to 2025 local currency amounts , consolidated net sales increased by $ 12.0 million , or 4.4 % , as compared to consolidated net sales in the corresponding period in 2025. A table reconciling this non - GAAP financial measure to consolidated net sales , as reported , is included below .
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Gross margin for the six months ended June 30, 2026 was $147.4 million, or 51.7%, as compared to $101.5 million, or 37.3%,for the corresponding period in 2025. Gross margin for the current period includes a tariff refund benefit of $40.1 million Selling, general and administrative expenses for the six months ended June 30, 2026 were $76.3 million, an increase of $7.3million, or 10.6%, as compared to $69.0 million for the corresponding period in 2025. Selling, general and administrativeexpenses for the prior period included a net legal settlement gain of $6.4 million. Income from operations was $29.4 million, as compared to loss from operations of $(36.1) million for the corresponding periodin 2025. Income from operations for the current period included a tariff refund benefit of $40.1 million. Loss from operations forthe prior period includes a non-cash goodwill impairment charge of $33.2 million related to the U.S. segment. Adjusted income from operations was $46.5 million, as compared to zero for the corresponding period in 2025. The 2026period included adjustments for acquisition-related intangible amortization expense of $8.6 million, acquisition-related diligenceexpenses of $2.1 million, restructuring expenses of $4.0 million, and warehouse relocation and redesign expenses of $2.4million. The 2025 period included adjustments for acquisition-related intangible amortization expense of $8.7 million, non-recurring gain related to a litigation settlement of $6.4 million, acquisition-related diligence expenses of $0.1 million, warehouserelocation and redesign expenses of $0.1 million, severance expenses of $0.3 million and goodwill impairment charge of $33.2million. Net income was $14.8 million, or $0.66 per diluted share, as compared to net loss of $(43.9) million, or $(2.03) per dilutedshare, in the corresponding period in 2025. Net income for the current period included a pre-tax tariff refund benefit of $40.1million. Net loss for the prior period included a non-cash goodwill impairment charge of $33.2 million. Adjusted net income was $27.4 million, or $1.23 per diluted share, as compared to adjusted net loss of $(7.9) million,or $(0.37) per diluted share, in the corresponding period in 2025. Adjusted EBITDA was $92.0 million for the trailing twelve months ended June 30, 2026. Liquidity as of June 30, 2026 was $150.6 million, consisting of $5.5 million of cash and cash equivalents, $128.3 million ofavailability under the ABL Agreement, and $16.8 million of available funding under the Receivables Purchase Agreement. Dividend On August 4, 2026, the Board declared a quarterly dividend of $0.0425 per share of common stock payable on November 13,2026 to stockholders of record on October 30, 2026. Full Year 2026 Guidance Updates For the full year ending December 31, 2026, the Company is updating its financial guidance as follows:(in millions - except per share data): Previous Guidancefor theYear EndingDecember 31, 2026 UpdatedGuidance for theYear EndingDecember 31,2026Net sales $650 to $700 $650 to $700Income from operations $12 to $14.5 $48 to $50.5Adjusted income from operations $44.5 to $47 $81.5 to $84Net (loss) income $(6.5) to $(5) $23 to $24.5Adjusted net income $16 to $17.5 $46 to $47.5 Diluted (loss) income per common share $(0.30) to $(0.23) pershare $1.03 to $1.10 pershare Adjusted diluted income per common share $0.73 to $0.80 pershare $2.06 to $2.13 pershareWeighted-average diluted shares 22 22.3Adjusted EBITDA, before limitation $53.5 to $56 $90.5 to $93 Tables reconciling non-GAAP financial measures to GAAP financial measures, as reported, are included below. Conference Call The Company has scheduled a conference call for Thursday, August 6, 2026 at 11:00 a.m. (Eastern Time). The dial-in numberfor the conference call is 1-844-826-3035 (USA) or 1-412-317-5195 (International). (1) (1) (1) (1) (1) A table reconciling this non-GAAP financial measure to its most comparable GAAP financial measure, as reported, is included below. (1) (2) (1) Diluted (loss) income per common share is calculated based on weighted-average shares outstanding of 21.8 million and 22.3million, respectively.(2) Adjusted dilutive income per common share is calculated based on weighted-average diluted shares of 22 million, whichincludes the effect of dilutive securities of 0.2 million, and 22.3 million, respectively.
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In addition, a live webcast of the conference call will be accessible through:https://viavid.webcasts.com/starthere.jsp?ei=1766897&tp_key=4a751b1112 For those who cannot listen to the live broadcast, an audio replay of the webcast will be available on the Company’s investorrelations website at https://lifetimebrands.gcs-web.com/ or via telephone replay by dialing 1-844-512-2921 (USA) or 1-412-317-6671 (International) and entering access code 10209750. The replay of the webcast will be available for one year. Non-GAAP Financial Measures This earnings release contains non-GAAP financial measures, including constant currency net sales, adjusted income fromoperations, adjusted net income (loss), adjusted diluted income (loss) per common share, adjusted EBITDA and adjustedEBITDA, before limitation. A non-GAAP financial measure is a numerical measure of a company’s historical or future financialperformance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect ofexcluding amounts, that are included in the most directly comparable measure calculated and presented in accordance withGAAP in the statements of income, balance sheets, or statements of cash flows of a company; or, includes amounts, or issubject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measureso calculated and presented. These non-GAAP financial measures are provided because the Company's management usesthese financial measures in evaluating the Company’s on-going financial results and trends, and management believes thatexclusion of certain items allows for more accurate period-to-period comparison of the Company’s operating performance byinvestors and analysts. Management uses these non-GAAP financial measures as indicators of businessperformance. These non-GAAP financial measures should be viewed as a supplement to, and not a substitute for, GAAPfinancial measures of performance. As required by SEC rules, the Company has provided reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures. Forward-Looking Statements In this press release, the use of the words “advance,” “believe,” “continue,” “could,” “deliver,” “drive,” “enable,” “expect,” “gain,”“goal,” “grow,” “intend,” “maintain,” “manage,” “may,” “outlook,” “plan,” “positioned,” “project,” “projected,” “should,” “take,”“target,” “unlock,” “will,” “would”, or similar expressions is intended to identify forward-looking statements. Such statementsinclude all statements regarding the growth of the Company, the Company’s financial guidance, the Company’s ability tonavigate the current environment and advance the Company’s strategy, the Company’s commitment to increasing investmentsin future growth initiatives, the Company’s initiatives to create value, the Company’s efforts to mitigate geopolitical factors andtariffs, the Company’s current and projected financial and operating performance, results, and profitability and all guidancerelated thereto, including forecasted exchange rates and effective tax rates, as well as the Company’s continued growth andsuccess, future plans and intentions regarding the Company and its consolidated subsidiaries. Such statements represent theCompany’s current judgments, estimates, and assumptions. The Company believes these judgments, estimates, andassumptions are reasonable, but these statements are not guarantees of any events or financial or operational results, andactual results may differ materially due to a variety of important factors. Such factors might include, among others, theCompany’s ability to comply with the requirements of its credit agreements; the availability of funding under such creditagreements; the Company’s ability to maintain adequate liquidity and financing sources and an appropriate level of debt, aswell as to deleverage its balance sheet; seasonality of the Company's cash flows; the possibility of impairments to theCompany’s goodwill; the possibility of impairments to the Company’s intangible assets; the highly seasonal nature of theCompany’s business; the Company’s ability to drive future growth and profitability from its European operations; changes inU.S. or foreign trade or tax law and policy; changes in general economic conditions that could impact the Company’s customersand affect customer purchasing practices or consumer spending; customer ordering behavior; the performance of theCompany’s newer products; expenses and other challenges relating to the integration of any future acquisitions; changes indemand for the Company’s products; changes in the Company’s management team; the significant influence of the Company’slargest stockholder; fluctuations in foreign exchange rates; changes in U.S. trade policy or the trade policies of nations in whichthe Company or the Company’s suppliers do business; shortages of and price volatility for certain commodities; global healthepidemic; social unrest, including related protests and disturbances; the emergence, continuation and consequences ofgeopolitical conditions, including political instability in the U.S. and abroad, unrest, sanctions, war and armed conflicts,increasing regional and global tensions, and associated disruptions and volatility in energy and oil markets; macro-economicchallenges, including labor disputes, depreciation of the U.S. dollar, volatility in the capital markets, inflationary impacts anddisruptions to the global supply chain; dependence on third-party manufacturers; increase in supply chain costs, including rawmaterials, sourcing, transportation and energy; the imposition of duties and tariffs and other trade barriers and retaliatorycountermeasures and/or economic sanctions implemented by the U.S. and other governments; impact of tariffs and tradepolicies, particularly with respect to China, including the risk of frequent changes, legal challenges, or reinstatement in modifiedform; the Company’s ability to successfully integrate acquired businesses; the Company’s expectations regarding customerpurchasing practices and the future level of demand for the Company’s products; the Company’s ability to execute on the goalsand strategies set forth in the Company’s Project Concord plan; and significant changes in the competitive environment and theeffect of competition on the Company’s markets, including on the Company’s pricing policies, financing sources and ability tomaintain an appropriate level of debt. The Company undertakes no obligation to update these forward-looking statements otherthan as required by law. Lifetime Brands, Inc. Lifetime Brands is a leading global designer, developer and marketer of a broad range of branded consumer products used inthe home. The Company markets its products under well-known kitchenware brands, including Farberware®, KitchenAid®,Sabatier®, Amco Houseworks®, Chef’n® Chicago™ Metallic, Copco®, Fred® & Friends, Houdini™, KitchenCraft®,Kamenstein®, La Cafetière®, MasterClass®, Misto®, Swing-A-Way®, Taylor® Kitchen, Rabbit®, and Dolly®; respectedtableware and giftware brands, including Mikasa®, Pfaltzgraff®, Fitz and Floyd®, Empire Silver™, Gorham®, International®Silver, Towle® Silversmiths, Wallace®, Wilton Armetale®, V&A®, Royal Botanic Gardens Kew®, Year & Day®, Dolly®, RoyalLeerdam®, and ONIS®; and valued home solutions brands, including BUILT NY®, S’well®, Taylor® Bath, Taylor® Kitchen,Taylor® Weather, Elements®, Planet Box®, and Dolly®. The Company also provides exclusive private label products to leadingretailers worldwide.
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The Company’s corporate website is www.lifetimebrands.com. Contacts: Lifetime Brands, Inc. Laurence Winoker, Chief Financial Officer516-203-3590investor.relations@lifetimebrands.com or MZ North America Shannon DevineMain: 203-741-8811LCUT@mzgroup.us LIFETIME BRANDS, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands—except per share data)(unaudited) Three Months EndedJune 30, Six Months EndedJune 30, 2026 2025 2026 2025 Net sales $ 141,569 $ 131,862 $ 285,077 $ 271,947 Cost of sales 48,330 81,023 137,669 170,471 Gross margin 93,239 50,839 147,408 101,476 Distribution expenses 20,095 17,314 37,678 35,384 Selling, general and administrativeexpenses 39,539 37,495 76,325 68,963 Goodwill impairment — 33,237 — 33,237 Restructuring expenses 1,980 — 4,010 — Income (loss) from operations 31,625 (37,207) 29,395 (36,108)Interest expense (4,122) (5,054) (8,634) (9,969)Mark to market gain (loss) oninterest rate derivatives 210 (220) 504 (747)Income (loss) before income taxes 27,713 (42,481) 21,265 (46,824)Income tax (provision) benefit (8,104) 2,782 (6,428) 2,924 NET INCOME (LOSS) $ 19,609 $ (39,699) $ 14,837 $ (43,900) BASIC INCOME (LOSS) PERCOMMON SHARE $ 0.89 $ (1.83) $ 0.68 $ (2.03) DILUTED INCOME (LOSS) PERCOMMON SHARE $ 0.87 $ (1.83) $ 0.66 $ (2.03) LIFETIME BRANDS, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(in thousands—except share data) June 30,2026 December 31,2025 (unaudited) ASSETS CURRENT ASSETS Cash and cash equivalents $ 5,451 $ 4,267 Accounts receivable, less allowancesof $10,538 at June 30,2026 and $11,970 at December 31, 2025 120,879 161,861 Inventory 197,074 194,046 Prepaid expenses and other current assets 49,042 12,147 Income taxes receivable — 1,572 TOTAL CURRENT ASSETS 372,446 373,893 PROPERTY AND EQUIPMENT, net 23,811 15,441
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OPERATING LEASE RIGHT-OF-USE ASSETS 95,728 48,506 INTANGIBLE ASSETS, net 124,289 132,922 OTHER ASSETS 725 1,793 TOTAL ASSETS $ 616,999 $ 572,555 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES Current maturity of term loan $ — $ 5,022 Current maturity of revolving credit facility 37,906 — Accounts payable 48,740 45,844 Accrued expenses 71,164 64,294 Income taxes payable 4,395 — Current portion of operating lease liabilities 14,300 16,143 TOTAL CURRENT LIABILITIES 176,505 131,303 OTHER LONG-TERM LIABILITIES 13,669 14,261 INCOME TAXES PAYABLE, LONG-TERM 686 686 OPERATING LEASE LIABILITIES 96,805 42,442 DEFERRED INCOME TAXES 1,525 1,554 REVOLVING CREDIT FACILITY — 54,105 TERM LOAN 110,332 125,927 STOCKHOLDERS’ EQUITY Preferred stock, $1.00 par value, shares authorized:100 shares of Series A and 2,000,000 shares of SeriesB; none issued and outstanding — — Common stock, $0.01 par value, shares authorized:50,000,000 at June 30, 2026 and December 31, 2025;shares issued and outstanding: 22,988,836at June 30, 2026 and 22,654,207 at December 31,2025 230 227 Paid-in capital 285,571 283,449 Accumulated deficit (50,533) (63,354)Accumulated other comprehensive loss (17,791) (18,045)TOTAL STOCKHOLDERS’ EQUITY 217,477 202,277 TOTAL LIABILITIES AND STOCKHOLDERS’EQUITY $ 616,999 $ 572,555 LIFETIME BRANDS, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)(unaudited) Six Months EndedJune 30, 2026 2025 OPERATING ACTIVITIES Net income (loss) $ 14,837 $ (43,900)Adjustments to reconcile net income (loss) to net cashprovided by operating activities: Depreciation and amortization 10,644 11,135 Goodwill impairment — 33,237 Non-cash restructuring charges 296 — Amortization of financing costs 1,330 1,390 Mark to market (gain) loss on interest rate derivatives (504) 747 Operating leases, net (759) (1,134)Provision for doubtful accounts 45 1,408 Stock compensation expense 1,992 2,106 Changes in operating assets and liabilities Accounts receivable 40,793 67,239 Inventory (3,471) (12,318)Prepaid expenses, other current assets and otherassets (34,880) (629)Accounts payable, accrued expenses and otherliabilities 9,711 (27,319)Income taxes receivable 1,572 (5,036)
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Income taxes payable 4,402 (869)NET CASH PROVIDED BY OPERATINGACTIVITIES 46,008 26,057 INVESTING ACTIVITIES Purchases of property and equipment (5,176) (2,746)NET CASH USED IN INVESTING ACTIVITIES (5,176) (2,746)FINANCING ACTIVITIES Proceeds from revolving credit facility 82,073 145,891 Repayments of revolving credit facility (97,885) (154,134)Repayments of term loan (21,875) (3,750)Payments for finance lease obligations (24) (21)Payments of tax withholding for stock basedcompensation (183) (416)Proceeds from the exercise of stock options 294 — Cash dividends paid (1,990) (1,933)NET CASH USED IN FINANCING ACTIVITIES (39,590) (14,363)Effect of foreign exchange on cash (58) 168 INCREASE IN CASH AND CASH EQUIVALENTS 1,184 9,116 Cash and cash equivalents at beginning of period 4,267 2,929 CASH AND CASH EQUIVALENTS AT END OFPERIOD $ 5,451 $ 12,045 LIFETIME BRANDS, INC.Supplemental Information(in thousands) Reconciliation of GAAP to Non-GAAP Operating Results Adjusted EBITDA for the twelve months ended June 30, 2026: Quarter Ended TwelveMonthsEndedJune 30,2026 September30,2025 December31,2025 March 31,2026 June 30,2026 (in thousands)Net (loss) income asreported $ (1,189) $ 18,152 $ (4,772) $ 19,609 $ 31,800 Income tax provision(benefit) 2,861 (3,220) (1,676) 8,104 6,069 Interest expense 5,013 5,048 4,512 4,122 18,695 Depreciation andamortization 5,398 5,315 5,282 5,362 21,357 Gain on disposition offixed assets (94) — — — (94)Mark to market loss(gain) on interest ratederivatives 8 (1) (294) (210) (497)Stock compensationexpense 994 201 1,043 949 3,187 Severance expense — 241 — — 241 Acquisition-relateddiligence expenses 49 1,799 1,104 972 3,924 Restructuring expenses 304 24 2,030 1,980 4,338 Warehouse relocationand redesignexpenses 76 48 159 2,242 2,525 Pro formaadjustments 500 Adjusted EBITDA $ 13,420 $ 27,607 $ 7,388 $ 43,130 $ 92,045 (1) (2) (3) For the twelve months ended June 30, 2026, warehouse relocation and redesign expenses were related to the U.S. segment.(1) Pro forma adjustments represent operating expense reductions projected by the Company as a result of actions takenthrough June 30, 2026 or expected to be taken within 18 months of June 30, 2026, net of the benefits realized during the twelvemonths ended June 30, 2026. These actions include cost savings for the International segment related to Project Concord.(2) Adjusted EBITDA is a non-GAAP financial measure that is defined in the Company’s debt agreements. Adjusted EBITDA isdefined as net (loss) income, adjusted to exclude income tax provision (benefit), interest expense, depreciation and amortization,gain on disposition of fixed assets, mark to market loss (gain) on interest rate derivatives, stock compensation expense, and otheritems detailed in the table above that are consistent with exclusions permitted by the Company’s debt agreements.(3)
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LIFETIME BRANDS, INC.Supplemental Information(in thousands—except per share data) Reconciliation of GAAP to Non-GAAP Operating Results (continued) Adjusted net income (loss) and adjusted diluted income (loss) per common share (inthousands - except per share data): Three MonthsEnded June 30, Six Months Ended June30, 2026 2025 2026 2025 Net income (loss) as reported $ 19,609 $ (39,699) $ 14,837 $ (43,900)Adjustments: Acquisition-related intangibleamortization expense 4,270 4,374 8,620 8,739 Legal settlement gain, net — — — (6,400)Acquisition-related diligenceexpenses 972 123 2,076 123 Restructuring expenses 1,980 — 4,010 — Warehouse relocation andredesign expenses 2,242 139 2,401 139 Severance expense — 270 — 270 Mark to market (gain) loss oninterest rate derivatives (210) 220 (504) 747 Goodwill impairment — 33,237 — 33,237 Income tax effect onadjustments (2,291) (9,571) (4,064) (9,176)Income tax provisionadjustment — 8,309 — 8,309 Adjusted net income (loss) $ 26,572 $ (2,598) $ 27,376 $ (7,912) Adjusted diluted income (loss) percommon share $ 1.18 $ (0.12) $ 1.23 $ (0.37) Adjusted income from operations (in thousands): Three MonthsEnded June 30, Six Months Ended June30, 2026 2025 2026 2025 Income (loss) from operations $ 31,625 $ (37,207) $ 29,395 $ (36,108)Adjustments: Acquisition-related intangibleamortization expense 4,270 4,374 8,620 8,739 Legal settlement gain, net — — — (6,400)Acquisition-related diligenceexpenses 972 123 2,076 123 Restructuring expenses 1,980 — 4,010 — Warehouse relocation andredesign expenses 2,242 139 2,401 139 Severance expense — 270 — 270 Goodwill impairment — 33,237 — 33,237 Total adjustments 9,464 38,143 17,107 36,108 Adjusted income from operations $ 41,089 $ 936 $ 46,502 $ — LIFETIME BRANDS, INC.Supplemental Information(in thousands) Reconciliation of GAAP to Non-GAAP Operating Results (continued) Constant Currency: (1) (2) (3) (4) For the three and six months ended June 30, 2026 and 2025, warehouse relocation and redesign expenses were related tothe U.S. segment.(1) The income tax provision adjustment is calculated using the effective tax rate for the three and six months ended June 30, 2025 of0.0% applied to the goodwill impairment adjustment. The income tax provision adjustment for the three and six months ended June30, 2025 provides important comparative analysis because the effective tax method was unusual due to timing of certain non-deductible expenses, including goodwill impairment.(2) Adjusted net income and adjusted diluted income per common share for the three and six months ended June 30, 2026 excludesacquisition-related intangible amortization expense, acquisition-related diligence expenses, restructuring expenses, warehouserelocation and redesign expenses, and mark to market gain on interest rate derivatives. The income tax effect on adjustmentsreflects the statutory tax rates applied on the adjustments and the income tax provision adjustment. Adjusted net loss and adjusteddiluted loss per common share for the three and six months ended June 30, 2025 excludes acquisition-related intangibleamortization expense, a legal settlement gain, net, acquisition related expenses, warehouse relocation and redesign expenses,severance expense, mark to market loss on interest rate derivatives, and goodwill impairment. The income tax effect on adjustmentsreflects the statutory tax rates applied on the adjustments. Adjusted net loss has been recast to include the income tax provisionadjustment.(3) Adjusted diluted income per common share is calculated based on diluted weighted-average shares outstanding of 22,612 and21,686 for the three months ended June 30, 2026 and 2025, respectively. Adjusted diluted loss per common share is calculatedbased on diluted weighted-average shares outstanding of 22,325 and 21,639 for the six month period ended June 30, 2026 and2025, respectively. The diluted weighted-average shares outstanding for the three and six months ended June 30, 2026 include theeffect of dilutive securities of 619 and 419, respectively. The diluted weighted-average shares outstanding for the three and sixmonths ended June 30, 2025 do not include the effect of dilutive securities.(4) (1) (2) For the three and six months ended June 30, 2026 and 2025, warehouse relocation and redesign expenses were related tothe U.S. segment.(1) Adjusted income from operations for the three and six months ended June 30, 2026 excludes acquisition-related intangibleamortization expense, acquisition-related diligence expenses, restructuring expenses, and warehouse relocation and redesignexpenses. Adjusted income from operations for the three and six months ended June 30, 2025, excludes acquisition-relatedintangible amortization expense, a legal settlement gain, net, acquisition-related diligence expenses, warehouse relocation andredesign expenses, severance expenses, and goodwill impairment.(2)
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As ReportedThree Months EndedJune 30, Constant CurrencyThree Months EndedJune 30, Year-Over-YearIncrease (Decrease) Net sales2026 2025 Increase(Decrease) 2026 2025 Increase(Decrease) CurrencyImpact ExcludingCurrency IncludingCurrency CurrencyImpactU.S. $128,167 $119,315 $ 8,852 $128,167 $119,315 $ 8,852 $ — 7.4% 7.4% —%International 13,402 12,547 855 13,402 12,723 679 (176) 5.3% 6.8% 1.5%Total netsales $141,569 $131,862 $ 9,707 $141,569 $132,038 $ 9,531 $ (176) 7.2% 7.4% 0.2% As ReportedSix Months EndedJune 30, Constant CurrencySix Months EndedJune 30, Year-Over-YearIncrease (Decrease) Net sales2026 2025 Increase(Decrease) 2026 2025 Increase(Decrease) CurrencyImpact ExcludingCurrency IncludingCurrency CurrencyImpactU.S. $258,874 $247,825 $ 11,049 $258,874 $247,838 $ 11,036 $ (13) 4.5% 4.5% —%International 26,203 24,122 2,081 26,203 25,209 994 (1,087) 3.9% 8.6% 4.7%Total netsales $285,077 $271,947 $ 13,130 $285,077 $273,047 $ 12,030 $(1,100) 4.4% 4.8% 0.4% LIFETIME BRANDS, INC.Supplemental Information Reconciliation of GAAP to Non-GAAP Updated Guidance Adjusted EBITDA guidance for the full year ending December 31, 2026 (in millions): Net income guidance $23 to $24.5Income tax expense 8.5 to 9.5Interest expense 16.5Depreciation and amortization 22Stock compensation expense 4Acquisition-related diligence expenses 2Restructuring expenses 7.5Warehouse relocation and redesign expenses 7 Adjusted EBITDA guidance, before limitation $90.5 to $93 Adjusted net income and adjusted diluted income per common share guidance for thefull year ending December 31, 2026 (in millions - except per share data): Net income guidance $23 to $24.5Acquisition-related intangible amortization expense 17Acquisition-related diligence expenses 2Restructuring expenses 7.5Warehouse relocation and redesign expenses 7Mark to market gain on interest rate derivatives (0.5)Income tax effect on adjustment (10)Adjusted net income guidance $46 to $47.5 Adjusted diluted income per share guidance $2.06 to $2.13 Adjusted income from operations guidance for the full year ending December 31,2026 (in millions): Income from operations guidance $48 to $50.5Acquisition-related intangible amortization expense17 (1) (1) “Constant Currency” is determined by applying the 2026 average exchange rates to the prior year local currency sales amounts, with the difference between the changein “As Reported” net sales and “Constant Currency” net sales, reported in the table as “Currency Impact.” Constant currency sales growth is intended to exclude the impactof fluctuations in foreign currency exchange rates.(1) (1)
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Acquisition-related diligence expenses 2Restructuring expenses 7.5Warehouse relocation and redesign expenses 7Adjusted income from operations $81.5 to $84 LIFETIME BRANDS, INC.Supplemental Information Reconciliation of GAAP to Non-GAAP Previous Guidance Adjusted EBITDA guidance for the full year ending December 31, 2026 (in millions): Net loss guidance $(6.5) to $(5)Income tax expense 0.5 to 1.5Interest expense 18Depreciation and amortization 22Stock compensation expense 4Acquisition-related diligence expenses 1.5Restructuring expenses 7Warehouse relocation and redesign expenses 7Adjusted EBITDA guidance $53.5 to $56 Adjusted net income and adjusted diluted income per common share guidance for thefull year ending December 31, 2026 (in millions - except per share data): Net loss guidance $(6.5) to $(5)Acquisition-related intangible amortization expense17Acquisition-related diligence expenses 1.5Restructuring expenses 7Warehouse relocation and redesign expenses 7Mark to market gain on interest rate derivatives(0.5)Income tax effect on adjustment (9.5)Adjusted net income guidance $16 to $17.5 Adjusted diluted income per share guidance $0.73 to $0.80 Adjusted income from operations guidance for the full year ending December 31,2026 (in millions): Income from operations guidance $12 to $14.5Acquisition-related intangible amortization expense17Acquisition-related diligence expenses 1.5Restructuring expenses 7Warehouse relocation and redesign expenses 7 Adjusted income from operations $44.5 to $47 Source: Lifetime Brands, Inc. Includes estimate for interest expense and mark to market gain on interest rate derivatives and interest income related to tariffrefunds.(1) (1) Includes estimate for interest expense and mark to market gain on interest rate derivatives.(1)