Lifetime Brands, Inc. reported consolidated net sales of $131.9 million for the second quarter ended June 30, 2025, a decrease of 6.9% compared to $141.7 million in the prior year period. Gross margin remained stable at 38.6%, compared to 38.5% in Q2 2024.
The company reported a loss from operations of $(37.2) million, which included a non-cash goodwill impairment charge of $33.2 million related to the U.S. segment. This impairment was triggered by the impacts of recently implemented tariffs, and the company's goodwill balance has now been reduced to zero. The net loss for the quarter was $(39.7) million, or $(1.83) per diluted share, a significant increase from a net loss of $(18.2) million, or $(0.85) per diluted share, in Q2 2024.
Management did not provide a formal outlook for the remainder of fiscal 2025, citing a 'tremendous lack of visibility' due to unpredictable tariff policies, retailer inventory shifts, and consumer demand. The company continues its supply chain diversification efforts, aiming to source 80% of manufacturing outside China by the end of 2025, and implemented product price increases of 6-16% in May 2025 due to tariffs.
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