Lifetime Brands 2025 Q3 Earnings Revenue Declines, Net Loss Widens by 445.6%

Lifetime Brands (LCUT) reported mixed results for Q3 2025, with revenue falling short of expectations while non-GAAP EPS exceeded forecasts. The company navigated tariff volatility and supply chain shifts, but profitability deteriorated sharply. Management highlighted strategic progress in international markets and cost controls, though forward-looking guidance remains cautious.

Revenue

Consolidated revenue declined 6.5% year-over-year to $171.91 million, missing estimates by $4.06 million. U.S. segment sales dropped 7.1% to $158.1 million, while international revenue rose 1.5% to $13.8 million, driven by strategic retail partnerships in Australia, New Zealand, and Europe.

Earnings/Net Income

The company swung to a net loss of $1.19 million ($0.05 per share) in Q3 2025, versus net income of $344,000 ($0.02 per share) in Q3 2024—a 445.6% deterioration. Adjusted net income stood at $2.5 million ($0.11 per share), beating EPS estimates by $0.01, but revenue underperformance offset profitability gains.

Post-Earnings Price Action Review

The strategy of buying LCUT on revenue beats and holding for 30 days shows potential due to the company’s 5.6% dividend yield, covered by a 34.7% payout ratio, and analysts’ $5.50 consensus price target. Despite Q3 revenue missing expectations, EPS outperformance and a 10% tariff reduction on Chinese imports suggest resilience. However, macroeconomic headwinds and deferred holiday demand pose near-term risks.

CEO Commentary

CEO Rob Kay emphasized supply chain flexibility, stating, “Our proactive tariff-mitigation strategy and diverse geographic sourcing allow us to adapt to volatility.” He noted progress in international markets and confidence in “above-average growth” as normalization takes hold. Kay also highlighted M&A opportunities, remarking, “Valuations are favorable due to market conditions and synergies.”

Guidance

Management refrained from formal 2025 guidance but projected improved performance in 2026 through cost controls, Project Concord initiatives, and strategic sourcing. CFO Larry Winoker noted, “Our pricing actions maintain gross margin dollars, even as percentages decline.”

Additional News

1. M&A Activity: Lifetime Brands is actively pursuing synergistic acquisitions, with CFO Winoker stating, “Valuations are favorable due to market conditions and cost eliminations.”

2. Dividend: The company declared a $0.0425 per share dividend (5.6% yield), with a 34.7% payout ratio covered by earnings.

3. Tariff Strategy: CEO Kay confirmed expanded sourcing in Mexico and Southeast Asia, leveraging a 10% China tariff cut, and flexibility to shift production as tariffs fluctuate.