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Lifetime Brands (LCUT)
:LCUT
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Lifetime Brands
(NASDAQ:LCUT)
54Neutral
Positive Factors
Earnings
Lifetime Brands reported strong Q4 results, with sales 5% ahead of consensus and adjusted EPS well above expectations.
E-commerce Strategy
The company attributed Q4 performance to the execution of its online sales strategy and incremental ecommerce share gains.
International Sales
International sales grew for the second consecutive quarter, +7% following +11% in Q3.
Negative Factors
Guidance
Weak POS trends that indicate guidance for 4Q24 sales is unrealistic.
Profitability
Little progress on improving European profitability despite multiple restructurings.
Tariffs
Material exposure to the recently announced tariffs.
Lifetime Brands (LCUT) vs. S&P 500 (SPY)
Market Cap
$119.68M
Dividend Yield3.15%
Average Volume (3M)58.70K
Price to Earnings (P/E)―
Beta (1Y)0.90
Revenue Growth-0.54%
EPS Growth-78.88%
CountryUS
Employees1,180
SectorConsumer Cyclical
Sector Strength49
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)-0.71
Shares Outstanding22,162,880
10 Day Avg. Volume85,209
30 Day Avg. Volume58,703
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.18
Price to Cash Flow (P/CF)1.50
P/FCF Ratio1.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.50Price Target Upside20.37% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Lifetime Brands Business Overview & Revenue Model
Company DescriptionLifetime Brands, Inc. (LCUT) is a leading global provider of kitchenware, tableware, and other products used in the home. The company designs, sources, and markets a wide range of consumer products under well-known brands such as Farberware, KitchenAid, and Mikasa. Lifetime Brands operates in the consumer goods sector, focusing on housewares and home products, offering both branded and private label products to retail and commercial customers worldwide.
How the Company Makes MoneyLifetime Brands makes money primarily through the sale of its products to retailers, distributors, and directly to consumers via e-commerce platforms. The company's revenue streams include sales from kitchenware, tableware, and other home products across multiple distribution channels, including department stores, mass merchants, specialty retailers, and online platforms. Key revenue drivers include innovative product designs, brand recognition, and strategic partnerships with retailers and licensors. Additionally, the company may engage in licensing agreements, allowing other companies to produce and sell products under Lifetime Brands' popular trademarks, providing a supplementary income stream.
Lifetime Brands Financial Statement Overview
Summary
Lifetime Brands faces challenges with declining revenue and negative profitability margins, impacting investor confidence. Stable balance sheet with moderate leverage; however, negative return on equity is concerning. Cash flow generation is strong, but declining free cash flow growth is a potential risk.Income Statement
Lifetime Brands has experienced declining revenue and profit margins over recent years. The gross profit margin for 2024 is approximately 38.17%, which shows stability in cost management. However, the net profit margin is negative at -2.22%, indicating ongoing profitability challenges. Revenue growth is negative, which might concern investors looking for growth prospects.45
Neutral
Balance Sheet
The company maintains a moderate debt-to-equity ratio of approximately 0.33, suggesting a balanced capital structure for 2024. The equity ratio is around 36.24%, reflecting a stable financial position. However, the return on equity is negative due to net losses, highlighting challenges in generating returns for shareholders.55
Neutral
Cash Flow
Lifetime Brands shows a strong free cash flow to net income ratio, indicating efficient cash generation relative to earnings. The operating cash flow to net income ratio is also positive, suggesting operational cash flow strength. Despite these strengths, declining free cash flow growth raises concerns about future cash sustainability.60
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 670.89M | 682.95M | 686.68M | 727.66M | 862.92M | 769.17M | Gross Profit |
| 253.67M | 260.70M | 254.64M | 260.32M | 303.32M | 274.00M | EBIT |
| 27.65M | 27.08M | 31.94M | 24.26M | 50.84M | 45.28M | EBITDA |
| 31.99M | 27.08M | 51.77M | 43.93M | 71.77M | 48.34M | Net Income Common Stockholders |
| -18.36M | -15.16M | -8.41M | 3.30M | 20.80M | -4.32M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 7.65M | 2.93M | 16.19M | 23.60M | 27.98M | 35.96M | Total Assets |
| 708.57M | 634.31M | 667.14M | 725.89M | 829.07M | 807.48M | Total Debt |
| 306.03M | 76.78M | 285.06M | 343.73M | 351.08M | 397.77M | Net Debt |
| 298.38M | 73.85M | 268.87M | 320.13M | 323.10M | 361.81M | Total Liabilities |
| 429.08M | 404.39M | 436.26M | 485.80M | 573.43M | 577.35M | Stockholders Equity |
| 279.49M | 229.92M | 230.88M | 240.09M | 255.65M | 230.14M |
| Cash Flow | Free Cash Flow | ||||
| 35.09M | 16.34M | 53.63M | 21.34M | 33.00M | 42.73M | Operating Cash Flow |
| 37.73M | 18.57M | 56.43M | 24.32M | 36.99M | 44.81M | Investing Cash Flow |
| -2.64M | -2.23M | -2.80M | -20.93M | -1.10M | -2.08M | Financing Cash Flow |
| -35.55M | -29.49M | -61.06M | -7.62M | -44.03M | -18.24M |
Lifetime Brands Technical Analysis
Positive
5.40
Price Trends
5.41
Positive
5.65
Negative
6.51
Negative
Market Momentum
0.03
Negative
54.31
Neutral
71.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LCUT, the sentiment is Positive. The current price of 5.4 is above the 20-day moving average (MA) of 5.16, below the 50-day MA of 5.41, and below the 200-day MA of 6.51, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 54.31 is Neutral, neither overbought nor oversold. The STOCH value of 71.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LCUT.
Lifetime Brands Risk Analysis
Lifetime Brands disclosed 39 risk factors in its most recent earnings report. Lifetime Brands reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lifetime Brands Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.21B | 10.65 | 7.19% | ― | -4.36% | -26.64% | |
67 Neutral | $3.52B | 14.60 | 63.68% | 3.17% | 0.07% | 7.19% | |
64 Neutral | $1.20B | 11.07 | 12.23% | 3.78% | -1.03% | 52.27% | |
60 Neutral | $1.11B | ― | -50.58% | 7.42% | -7.27% | -272.76% | |
59 Neutral | $12.35B | 11.02 | 1.38% | 3.72% | 1.28% | -20.23% | |
54 Neutral | $119.68M | ― | -6.58% | 3.15% | -0.54% | -78.88% | |
48 Neutral | $2.68B | ― | -7.37% | 4.34% | -6.77% | 44.59% |
* Consumer Cyclical Sector Average
Performance Comparison
LCUT
Lifetime Brands
5.42
-3.98
-42.34%
HELE
Helen Of Troy
53.00
-61.05
-53.53%
LEG
Leggett & Platt
8.57
-9.76
-53.25%
NWL
Newell Brands
6.73
-0.68
-9.18%
SCS
Steelcase
10.57
-1.60
-13.15%
KTB
Kontoor Brands
64.92
8.28
14.62%
Lifetime Brands Earnings Call Summary
Earnings Call Date: Mar 13, 2025 | % Change Since: 4.05% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call highlights a strong performance in e-commerce sales and international segment improvement, supported by strategic initiatives like the Dolly Parton program and distribution center relocation. However, challenges remain with mass channel declines, soft UK markets, and tariff impacts. Overall, the positive aspects slightly outweigh the negative, indicating a cautiously optimistic outlook.Highlights
Sales and Margin Growth
Fourth quarter net sales increased by 6% to $215 million compared to $203 million in the same period last year. Gross margin expanded by 130 basis points.
E-commerce Success
E-commerce sales grew by 9% quarter over quarter and accounted for 24% of total sales in the fourth quarter and over 20% for the full year 2024. US e-commerce sales saw a 10% increase year over year.
International Segment Improvement
International sales increased by 7.2%, with a significant gross margin improvement of 1,140 basis points to 38.6% in the fourth quarter.
Dolly Parton Program Success
Generated $7 million in incremental sales in 2024, with expectations to double in 2025. Strong sell-through at Dollar General noted.
Strategic Relocation of Distribution Center
Relocation of the East Coast distribution center from New Jersey to Maryland, increasing space by 30% with $13 million in government subsidies.
Lowlights
Mass Channel Decline
Loss of market share in the mass channel, specifically on the KitchenAid side, impacted performance.
UK Market Softness
UK end markets remain soft, with demand lagging in both Europe and Asia Pacific.
Tariff Challenges
Ongoing concerns about tariffs, with a need to move production out of China to mitigate risks.
International Segment Loss
EBIT loss in the international segment was $10.5 million, with a goal to reach breakeven by 2026.
Company Guidance
During Lifetime Brands' fourth quarter 2024 earnings call, the company reported a 6% increase in net sales to $215 million, with e-commerce contributing 24% of total sales for the quarter and over 20% for the full year. Gross margin expanded by 130 basis points, reaching 37.7%, driven by a significant improvement in the international segment, which saw a margin rise of 1,140 basis points to 38.6%. The Dolly Parton program, a key growth driver, generated $7 million in incremental sales in 2024, with expectations to double in 2025. The international segment sales increased by 7.2% and are expected to reach profitability by 2026, aided by Project Concorde. The company also announced a strategic relocation of its East Coast distribution center to Maryland, benefiting from $13 million in government subsidies. Adjusted net income for Q4 2024 was $12 million, or $0.55 per diluted share, while adjusted EBITDA for the full year stood at $55.4 million.Lifetime Brands Corporate Events
Business Operations and Strategy
Lifetime Brands Announces New Distribution Center Move
Positive
Jan 29, 2025
On January 23, 2025, Lifetime Brands, Inc. entered into a lease agreement for a new 1.027 million-square-foot distribution center in Hagerstown, Maryland, to serve as its primary east coast distribution hub, replacing the Robbinsville, New Jersey facility. This strategic relocation aims to support Lifetime’s long-term growth by optimizing infrastructure and operational efficiencies, aided by tax abatements and incentives totaling approximately $13 million from Maryland and Washington County, and integrating a new warehouse management system. The move, expected to be completed by the second quarter of 2026, includes incurring one-time costs up to $7 million and capital expenditures of around $10 million, with anticipated operational readiness by 2026.
Executive/Board ChangesBusiness Operations and Strategy
Lifetime Brands Appoints New Independent Director
Positive
Jan 22, 2025
On January 17, 2025, Lifetime Brands, Inc. announced the expansion of its Board of Directors from nine to ten members and appointed Jeffrey Evans as an independent director. Evans, with his extensive experience in retail and consumer leadership, is expected to bring significant expertise in go-to-market and merchandising strategies. His appointment is seen as a strategic move to bolster the company’s market share and growth initiatives, particularly in the context of evolving digital and omnichannel strategies. The announcement highlights Lifetime’s commitment to modernizing its operations and enhancing shareholder value.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.