Lifetime Brands (LCUT) Q2 2026 Earnings Call Transcript

• Chief Executive Officer - Robert Kay

• Chief Financial Officer - Laurence Winoker

Full Conference Call Transcript

Operator: Good morning, ladies and gentlemen, and welcome to the Lifetime Brands Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note that this conference today is being recorded. I would now like to turn the conference over to [ Jamie Kirchen]. Mr. [ Kirchen ], you may now go ahead.

Unknown Executive: Good morning, and thank you for joining Lifetime Brands Second Quarter 2026 Earnings Call. With us today from management are Rob Kay, Chief Executive Officer; and Laurence Winoker, Chief Financial Officer. Before we begin the call, I'd like to remind you that our remarks this morning may contain forward-looking statements that relate to the future of the company. These statements are intended to qualify for the safe harbor protection from liability established by the Private Securities Litigation Reform Act. Any such statements are not guarantees of future performance and factors that could influence our results are highlighted in our earnings release. Any other factors are contained in our filings with the Securities and Exchange Commission.

Such statements are based upon information available to the company as of the date hereof and are subject to change for future developments. Except as required by law, the company does not undertake any obligation to update such statements. Our remarks this morning and in our earnings release also contain non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. Included in such release is a reconciliation of these non-GAAP financial measures with the comparable financial measures calculated in accordance with GAAP. With that introduction, I'd like to turn the call over to Rob Kay. Please go ahead, Rob.

Robert Kay: Thank you, and good morning. We are pleased with our performance during the second quarter, which showed year-over-year growth as expected. The increase in gross margin and our bottom line was meaningfully driven by a benefit recognized from IEEPA tariff refunds. Top line growth was notable with net sales up 7.4% to $141.6 million despite some timing delays on a few programs, which shifted revenues from these programs into the third and fourth quarter. The earnings growth we generated includes a benefit for the expected recovery of $40.1 million of tariffs we paid in 2025.