Lifetime Brands (LCUT) investor relations material

Executive summary

• Achieved year-over-year net sales growth of 2.4% to $143.5 million in Q1 2026, exceeding consensus and driven by higher U.S. selling prices, international growth, and strong Home Solutions performance, especially home decor and the Dolly Parton brand.

• Gross margin improved to 37.7% from 36.1% year-over-year, reflecting favorable product mix, pricing actions, and cost structure improvements, partially offset by higher tariffs.

• Adjusted EBITDA for the trailing twelve months reached $52.7 million, with adjusted net income of $0.8 million versus an adjusted net loss of $5.3 million in Q1 2025.

• Net loss for Q1 2026 was $4.8 million ($0.22/share), up from $4.2 million loss ($0.19/share) in Q1 2025, impacted by higher SG&A and restructuring expenses.

• Strategic focus on cost discipline, pricing execution, new product investment, and operational efficiency drove results and outperformance versus public peers.

Financial highlights

• Q1 2026 consolidated net sales increased 2.4% to $143.5 million year-over-year; U.S. segment sales rose 1.7% to $130.7 million, international sales up 10.6% to $12.8 million.

• Gross margin dollars increased to $54.2 million (37.7%), up from $50.6 million (36.1%) year-over-year.

• SG&A expenses rose 16.8% to $36.8 million, mainly due to higher professional and legal fees.

• Adjusted EBITDA for the trailing twelve months ended March 31, 2026, was $52.7 million.

• Free cash flow of $30 million generated in the quarter; operating cash flow rose to $33.8 million, up from $16.7 million in the prior year.

Outlook and guidance

• 2026 guidance: net sales of $650–$700 million, adjusted EBITDA of $53.5–$56 million, adjusted net income of $16–$17.5 million, and adjusted diluted EPS of $0.73–$0.80.

• Guidance includes full-year benefit of 2025 pricing actions, no incremental pricing increases for 2026, and costs associated with the Hagerstown distribution center transition.

• Management expects continued margin pressure through 2026 as higher-cost inventory is sold through, reflecting the full impact of tariffs.

• E-commerce and Project Concord restructuring expected to contribute to growth and cost efficiencies.

• Hagerstown distribution facility is operational, with remaining relocation and start-up costs to be incurred during the year.