Lifetime Brands Boosts Q4 Net by 176 Percent
March 10, 2011,
GARDEN CITY, N.Y.-A strong gain in net sales and what Jeff Siegel, chairman and chief executive officer, called "cost containment" helped push Lifetime Brands' net income by 176 percent in the fourth quarter, to $13.9 million.
Net sales for the housewares and home-decor vendor rose 11.4 percent to $142.6 million in the quarter, which ended on Dec. 31. Selling, general and administrative expenses were trimmed by 2.2 percent on a dollar basis, and were cut by 257 basis points, to 18.6 percent, as a percentage of sales. Fourth-quarter gross margin was off 181 basis points to 38.2 percent.
Those same adjustments produced a 646 percent increase in the company's profit for the full fiscal year, which reached $20.3 million. Absent these factors, net income for 2010 increased 189 percent to $15 million. Net sales for the year finished at $443.2 million, up 6.8 percent.
Siegel said, "We achieved these results through careful execution of our strategy during an uncertain and challenging period for the global economy."