Boston, MA 03/14/2014 (wallstreetpr) – Lifetime Brands Inc (NASDAQ:LCUT) released fourth quarter performance results which showed the company drifted south in its earnings. Yet the management has come out candidly to explain exactly what happened and what they believe the future holds for the company.
But is it okay to take the management for its word? Savvy investors always seek to get to bottom of the matter before commit hard-earned money to investment in a company with many parts moving like Lifetime Brands Inc (NASDAQ:LCUT). So then, we take a closer look at the company and let you make an informed decision, but first, a recap of the fourth quarter performance data.
Income decline blamed on weak U.S. spending
Lifetime Brands Inc (NASDAQ:LCUT) reported Thursday that its fourth quarter income was down 38 percent to $9.4 million compared to the same quarter a year earlier. On per share basis, the net income was 72 cents per share diluted, compared with $1.19 in the fourth quarter of 2012.
The troubles in the fourth quarter which led to the poor income were weak disposable income in the U.S. and higher duties on ceramics in the European Union. Together, these challenges weighed heavily on earnings despite significant increase in sales.
Net sales in the fourth quarter came in at $164.9 million, topping the net sales in the corresponding quarter a year ago by $10.1 million.
For the full-year 2013, Lifetime Brands Inc (NASDAQ:LCUT) had its net sales up 3.3 percent to $502.7 million. Net income for the year was $9.3 million or $0.71 per share diluted. That compared with net income of $20.9 million or $1.64 per share diluted in 2012.
Upbeat management sentiments
Lifetime Brands Inc (NASDAQ:LCUT) management stated that they expect to earn better results in the years ahead. They cite their string of acquisitions such as Kitchen Craft (U.K. kitchen products supplier) in January, Built NY (neoprene bags distributor) in February and a brewing business from The Greenfield Group Ltd this month. The company is also set to begin supplying about 400 Wal-Mart stores in China.
