Lifetime Brands Cuts 2026 Operating Income Outlook

The Tip Desk · November 5, 2026 · 3 min read

Third-quarter net sales were $177.7 million as the company lowered full-year income-from-operations guidance to $42.5 million–$45 million.

Lifetime Brands, Inc. (LCUT), a global designer and marketer of branded home products, reported third-quarter net sales of $177.7 million, up 3.4% from $171.9 million a year earlier, and cut its full-year 2026 income-from-operations outlook to $42.5 million–$45 million from $48 million–$50.5 million.

Year-over-year sales growth slowed from 7.4% in the second quarter after 2.4% in the first. Chief Executive Officer Rob Kay said the company delivered 3.4% net sales growth and expanded gross margin by 140 basis points as momentum continued across key parts of the business.

Gross margin for the three months ended September 30, 2026 was $64.9 million, or 36.5%, versus $60.4 million, or 35.1%, a year earlier. The current-period gross margin included a $3.3 million charge for inventory reserves associated with a stock-keeping-unit rationalization.

GAAP loss from operations was zero, versus income from operations of $6.7 million a year earlier. The current-period operating result included the $3.3 million SKU-rationalization charge. Adjusted income from operations was $13.8 million, versus $11.5 million a year earlier. The 2026 quarter included adjustments for acquisition-related intangible amortization of $4.3 million, acquisition-related diligence expenses of $0.3 million, restructuring expenses of $0.6 million, warehouse relocation and redesign expenses of $5.3 million, and the SKU-rationalization charge.

Net loss was $(4.2) million, or $(0.19) a share, versus a net loss of $(1.2) million, or $(0.05) a share, a year earlier. Adjusted net income was $8.4 million, or $0.37 a share, versus $2.5 million, or $0.11 a share, a year earlier.

Kay said international sales grew 18.8% and the International segment approached breakeven as Project Concord took hold. He also said home décor continued to grow, the Farberware relaunch was performing well, and the Dollar General partnership launched in 2024 was on track to approach $20 million in sales this year.

Selling, general and administrative expenses were $38.2 million, up 7.6% from $35.5 million a year earlier. Distribution expenses were $26.1 million, compared with $17.9 million a year earlier. Interest expense, net, was $2.1 million. The quarter also included a $2.5 million loss on extinguishment of debt.

For the year ending December 31, 2026, the company raised net sales guidance to $660 million–$700 million from $650 million–$700 million. It lowered net income guidance to $19 million–$20.5 million from $23 million–$24.5 million, and diluted income per common share to $0.84–$0.91 from $1.03–$1.10. Adjusted income from operations guidance of $81.5 million–$84 million, adjusted net income of $46 million–$47.5 million, and adjusted EBITDA before limitation of $90.5 million–$93 million were left unchanged. Weighted-average diluted shares were raised to 22.5 million from 22.3 million.

On November 3, 2026, the board authorized a $20 million share-repurchase program, after about $11.1 million had been available under the prior authorization. The board also declared a quarterly dividend of $0.0425 a share, payable February 12, 2027. Kay said this year’s refinancing lowered borrowing costs and strengthened financial flexibility. Liquidity as of September 30, 2026 was $123.3 million, consisting of $5.9 million of cash and cash equivalents, $96.4 million of availability under the ABL Agreement, and $21.0 million of available funding under the Receivables Purchase Agreement.

Kay said the company looks forward to sharing its capital allocation strategy and the tailwinds it sees for 2027 at an Investor Day on December 1.