Lifetime Brands Raises 2026 Earnings Outlook After Tariff Refunds
The home-products marketer booked a $40.1 million tariff refund, swung to $19.6 million of net income, or $0.87 a share, and lifted full-year profit guidance.
Lifetime Brands, Inc. (LCUT), a global designer and marketer of branded home products, reported net sales of $141.6 million for the three months ended June 30, 2026, up 7.4% from $131.9 million a year earlier. That year-over-year gain followed a 2.4% increase in the first quarter. Chief Executive Officer Rob Kay said the second-quarter results were in line with expectations and reflected growth versus a year-ago period that had been hit by initial high U.S. tariff rates.
The profit swing was larger than the sales move. Net income was $19.6 million, or $0.87 a share, versus a net loss of $39.7 million, or $1.83 a share, a year earlier. The current period included a pre-tax tariff refund benefit of $40.1 million; the year-ago period included a $33.2 million non-cash goodwill impairment related to the U.S. segment. Adjusted net income was $26.6 million, or $1.18 a share, versus an adjusted net loss of $2.6 million, or $0.12 a share.
Gross margin was $93.2 million, or 65.9%, versus $50.8 million, or 38.6%, a year earlier. Income from operations was $31.6 million versus an operating loss of $37.2 million. Adjusted income from operations was $41.1 million versus $0.9 million. Selling, general and administrative expenses were $39.5 million.
Kay said the underlying business performed despite softer end markets, led by growth in warehouse club programs and e-commerce. The company relaunched a redesigned Farberware line and extended its Dolly Parton license for three more years. The International segment again narrowed its losses and remains on track to achieve break-even in 2026.
Since the end of the first quarter, Lifetime Brands repaid $40 million of term debt using cash generated from operations and tariff refunds. Liquidity as of June 30, 2026, was $150.6 million, consisting of $5.5 million of cash and cash equivalents, $128.3 million of availability under the ABL Agreement, and $16.8 million under the Receivables Purchase Agreement. Term loan balance was $110.3 million at June 30.
The Hagerstown distribution facility is online. Kay said the new facility is experiencing startup challenges and that the company remains targeted for full operation by the fourth quarter of 2026. Adjusted EBITDA was $43.1 million for the quarter ended June 30, 2026, versus $7.4 million for the quarter ended March 31. Trailing-twelve-month adjusted EBITDA ended June 30 was $92.0 million.
For the full year ending December 31, 2026, Lifetime Brands reaffirmed net sales guidance of $650 million to $700 million. It raised income from operations guidance to $48 million to $50.5 million from $12 million to $14.5 million, and adjusted income from operations to $81.5 million to $84 million from $44.5 million to $47 million. Net income guidance moved to $23 million to $24.5 million from a projected loss of $6.5 million to $5 million. Adjusted net income guidance was raised to $46 million to $47.5 million from $16 million to $17.5 million. Diluted income guidance is now $1.03 to $1.10 a share, versus a prior projected loss of $0.30 to $0.23 a share; adjusted diluted income guidance is $2.06 to $2.13 a share. Adjusted EBITDA, before limitation, is now $90.5 million to $93 million from $53.5 million to $56 million. The company is raising earnings guidance to reflect recognition of the tariff refunds.
The board declared a quarterly dividend of $0.0425 a share, payable November 13, 2026, to stockholders of record October 30. Kay said the company looks forward to presenting its longer-term strategy at an investor day in December.