Lifetime Brands Inc (LCUT) Q3 2025 Earnings Call Highlights: Strategic Shifts and Challenges …

Release Date: November 06, 2025

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

Positive Points

  • Lifetime Brands Inc (NASDAQ:LCUT) has successfully implemented a tariff mitigation strategy, which is now fully in place and performing as intended.

  • The company has expanded its sourcing in Mexico and Southeast Asia, providing flexibility in its supply chain.

  • Lifetime Brands Inc (NASDAQ:LCUT) has seen a favorable all-in cost basis from China for many product categories, which is expected to improve further with a 10% tariff reduction.

  • The company’s international segment showed progress on both top and bottom lines, benefiting from strategic shifts towards major retailers in Australia, New Zealand, and Europe.

  • Liquidity remains solid at $51 million, allowing the company to continue investing selectively in areas that will drive long-term profitability and shareholder value.

Negative Points

  • Lifetime Brands Inc (NASDAQ:LCUT) reported a net loss of $1.2 million for the third quarter of 2025, compared to a net income of $0.3 million in the same period of 2024.

  • Consolidated sales declined by 6.5% to $171.9 million, with the US segment sales decreasing by 7.1%.

  • The company experienced a decline in unit sales due to dampened consumer demand and a shift in the timing of retailer orders.

  • Gross margin decreased to 35.1% from 36.7%, primarily due to higher selling prices to offset tariffs.

  • The current macroeconomic backdrop and end market environment remain challenging, with a slightly downtrend expected for the holiday season.

Q & A Highlights

Q: Can you quantify the revenue shift for your large customers mentioned in your remarks? A: Not at this time.

Q: Can you provide more information on pricing versus unit volumes and how it should be viewed for the fourth quarter? A: Our price increase approximately offsets the additional tariffs, which was our objective. The impact of these price increases on sales is a couple of percentage points, and it will have additional impact in the fourth quarter as it is still being phased in.

Q: Are the Section 232 tariffs included in your outlook for the fourth quarter? A: By the end of the third quarter, except for the 232 tariffs, everything had been implemented, but it wasn’t implemented day one in Q3, so there’s not a full quarter impact.

Q: Can you give us a sense of your current product sourcing, especially regarding China? A: Production has fluctuated, with shifts to Southeast Asia and back to China due to infrastructure issues and favorable economics. We can flexibly move production, and many factories in Southeast Asia have overlapping ownership with those in China, allowing easy shifts.

Q: What types of M&A opportunities are you looking at, and what are you seeing in terms of valuation multiples? A: We are actively engaged in opportunities within our space that are highly synergistic. Valuations are favorable due to market conditions and the absence of financial buyers, allowing us to leverage synergies and cost eliminations.

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