• Revenue: Fourth quarter net sales increased 6% to $215 million compared to $203 million in the same period last year.
• Gross Margin: Expanded by 130 basis points to 37.7% in the fourth quarter.
• Net Income: Fourth quarter net income was $8.9 million or $0.41 per diluted share, up from $2.7 million or $0.13 per diluted share in the fourth quarter of 2023.
• Adjusted Net Income: $12 million or $0.55 per diluted share in the fourth quarter of 2024, compared to $6.3 million or $0.29 per diluted share in 2023.
• Adjusted EBITDA: $55.4 million for the full year 2024.
• E-commerce Sales: Increased 9% to $51.5 million in the fourth quarter and 4.2% to $137.7 million for the full year.
• International Sales: Increased 7.2% in the fourth quarter, with a significant gross margin improvement of 1,140 basis points to 38.6%.
• Free Cash Flow: Generated $16.3 million for the full year.
• Liquidity: $111.7 million at year-end, comprising cash and availability under credit facilities.

• Warning! GuruFocus has detected 3 Warning Signs with LCUT.

Release Date: March 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Lifetime Brands Inc (NASDAQ:LCUT) reported a 6% increase in net sales for the fourth quarter of 2024, reaching $215 million compared to $203 million in the same period last year.
• The company achieved a gross margin expansion of 130 basis points, demonstrating effective margin management.
• E-commerce sales grew significantly, contributing 24% of total sales in the fourth quarter and over 20% for the full year 2024.
• The Dolly Parton program was a key growth driver, generating $7 million in incremental sales in 2024, with expectations to double in 2025.
• International sales increased by 7.2%, with significant margin improvement driven by strategic brand launches and e-commerce growth.

Negative Points

• The mass channel experienced a decline, offsetting some of the gains from other channels.
• The UK market remained soft, with demand lagging in both Europe and Asia Pacific.
• The company faces ongoing challenges from tariffs, with a significant portion of production still based in China.
• There was a decline in sales for certain brands like Taylor and Pfaltzgraff, indicating areas needing revitalization.
• The international segment reported an EBITDA loss of just under $10 million, with a breakeven target not expected until 2026.

Q & A Highlights

Q: Can you provide more detail about the mass channel softness and the momentum in the e-commerce channel in early 2025? A: Robert Kay, CEO, explained that consumer shopping patterns shifted later in the season, favoring e-commerce due to quick delivery options. While the first two months of the fourth quarter were slower, December saw strong performance. The company lost some share in the KitchenAid segment but expects this to be a temporary issue. E-commerce momentum is expected to continue into 2025.

Q: What is the current exposure to China regarding tariffs, and how do you plan to address it in 2025? A: Robert Kay, CEO, stated that the tariff situation is fluid, and the company is moving production to various geographies to reduce dependency on China. The goal is to move the majority of production out of China by the end of 2025, focusing on high-volume products.

Q: Can you provide an update on the International segment's performance and expectations for profitability? A: Robert Kay, CEO, mentioned that the International segment had an EBITDA loss of just under $10 million in 2024. The company aims to achieve a breakeven run rate by the end of 2025, with full profitability expected in 2026, supported by Project Concord.

Q: How is the Dolly Parton program performing, and what are the expectations for 2025? A: Robert Kay, CEO, noted that the Dolly Parton program exceeded initial expectations, with $7 million in sales in 2024. Dollar General delayed some shipments to 2025, but the program continues to expand, with strong sales velocity and plans to roll out to other retailers.

Q: What is the company's strategy for managing potential tariff impacts on pricing? A: Robert Kay, CEO, emphasized that the magnitude of tariffs necessitates passing costs through to consumers. The company plans to implement price increases over the next few months to mitigate tariff impacts, while maintaining a buffer to protect against immediate financial effects.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.