GARDEN CITY, N.Y.-With sales down by almost double digits, Lifetime Brands reported a net loss of $632,000 in its first quarter, compared to net income of $1.3 million in the first quarter of last year.
Net sales in the quarter, which ended on March 31, dropped 9.5 percent to $98.7 million. This sales fall ended up influencing the behavior of the other key numbers in the quarter.
Even though cost of sales were down, gross margin slipped 30 basis points to 36.8 percent. Selling, general and administrative expenses edged up 0.6 percent but increased 261 basis points as a percentage of sales, to 26 percent.
Jeffrey Siegel, Lifetime’s chairman, president and CEO, said the first-quarter data was in line with what the company expected, and has not changed Lifetime’s projections for the remainder of the year. “We continue to foresee 2013 net sales increasing by 4 to 6 percent,” Siegel said, “based on modest improvements in the outlook for the U.S. economy and in the U.K., the rollout of new programs and promotions, and the inclusion of Fred & Friends (which Lifetime acquired last December). We expect this growth to occur primarily in the third and fourth quarters.”