Lifetime Brands, Inc.

Second-quarter 2026 net sales were $141.6 million, up 7.4% year over year. Net income was $19.6 million, or $0.87 per diluted share, versus a net loss of $39.7 million, or $1.83 per diluted share, last year; adjusted net income was $26.6 million, or $1.18 per diluted share, versus an adjusted net loss of $2.6 million, or $0.12 per share. Income from operations was $31.6 million versus a loss from operations of $37.2 million, and adjusted income from operations was $41.1 million versus $900,000. Gross margin was 65.9% versus 38.6%, driven by a $40.1 million tariff refund benefit. For the full year 2026, the company maintained net sales guidance of $650 million to $700 million and raised adjusted income from operations guidance to $81.5 million to $84 million, adjusted net income guidance to $46 million to $47.5 million, and adjusted EBITDA guidance to $90.5 million to $93 million.

Rob Kay framed the quarter as a good underlying performance and an exceptional reported one because of the tariff refund. He emphasized that the company is using the cash to pay taxes, restore some 2025 investment cuts, and strengthen the balance sheet through deleveraging, not simply to drop to the bottom line. He also pointed to progress on Farberware, the Dolly Parton license extension, International’s path to breakeven, and the Hagerstown distribution center moving toward full operation by the fourth quarter.

Laurence Winoker highlighted that the tariff refund drove the reported margin and earnings swing, with the company accruing $40.1 million and having received $36.4 million to date. He said net debt fell about $10 million in the quarter and about $39 million since year-end 2025, with liquidity of approximately $151 million and current net debt of about $121 million. He also noted lower interest expense from reduced borrowings and lower rates, and said the company is in the final stage of extending its revolver and refinancing its term loan, which would push debt maturities to 2031.

Analysts focused on how much of the guidance raise came from the tariff refund versus reinvestment, and management said the difference was mainly due to using part of the cash to delever, pay taxes, restore compensation, and invest in new products. Questions also centered on Hagerstown’s ramp, and management said the main inefficiencies have largely been solved, with some shipment delays expected to persist into Q3 before the facility is fully operational in Q4. On demand, management said shipment timing shifts and a still-soft consumer-durables market affected Q2, but they do not believe the missed timing means the business is being lost.