Lifetime Brands (LCUT) investor relations material

Executive summary

• Net sales for Q2 2026 increased 7.4% year-over-year to $141.6 million, led by warehouse club programs, e-commerce, and higher selling prices, despite some revenue timing delays.

• Gross margin surged to 65.9% from 38.6% in Q2 2025, primarily due to a $40.1 million IEEPA tariff refund recognized as a reduction to cost of goods sold.

• Net income for Q2 2026 was $19.6 million ($0.87 per diluted share), reversing a net loss of $39.7 million in Q2 2025.

• The company used the tariff refund to pay taxes, restore prior cost reductions, invest in growth, and repay $40 million in term debt.

• Major restructuring initiatives included relocating the distribution facility to Hagerstown, MD, closure of certain manufacturing operations, and relaunch of the Farberware line.

Financial highlights

• Q2 2026 net sales: $141.6 million (up 7.4% year-over-year); six months: $285.1 million (up 4.9%).

• Q2 gross margin: $93.2 million (65.9% of sales); six months: $147.4 million (51.7%).

• Q2 net income: $19.6 million ($0.87/diluted share); adjusted Q2 net income: $26.6 million ($1.18/diluted share).

• Trailing twelve-month adjusted EBITDA: $92.0 million.

• U.S. segment sales: $128.2 million (up 7.5%); international: $13.4 million (up 6.8%).

Outlook and guidance

• Full-year 2026 net sales guidance reaffirmed at $650–$700 million.

• Earnings, adjusted net income, and adjusted EBITDA guidance raised, reflecting the tariff refund and increased investment.

• Guidance incorporates caution due to geopolitical, inflationary, and supply chain risks, including higher ocean freight costs.

• Restructuring activities, including Project Concord, expected to be completed by year-end 2026.