Back to top


Lifetime Brands, Inc. recently hit a new multi-year high at $15.99 after returning to profitability in its early May, Q1 results. Estimates are on the rise as the company benefits from a strong consumer environment.

Company Description

Lifetime Brands, Inc. designs and sells a line of consumer goods for food preparation, tabletop and home decor in North America. The company was founded in 1945 and has a market cap of $191 million.

First-Quarter Results

Revenue for the period was down about $1.5 million from last year to $88.7 million, but earnings came in far better than expected at 6 cents per share, blowing past the Zacks Consensus Estimate calling for a loss of 5 cents. The solid earnings surprise pushed the company's average earnings surprise to 82% over the last four quarters.

Lifetime Brands drove its bottom line with some impressive margin growth, with gross margin expanding to 37% from 33% last year on a more favorable product mix and lower royalty and freight expenses.

The company also saw its sales, general and administrative costs drop, with CEO Jeffrey Siegel noting that "Our first-quarter 2010 results benefited from our 2008 and 2009 restructuring and inventory reduction efforts. Selling, General and Administrative Expenses in this year’s first quarter decreased 6.4% compared to the 2009 period."

Balance Sheet Improving

The company's strong cash flow has helped it strengthen its balance sheet, with its total debt load down $57 million from last year to $91 million.

Estimates Advance

Estimates took a nice jump forward on the solid performance, with the current year adding 14 cents to $1.09. The next-year estimate is up 9 cents in the same time to $1.26.


After a string of big gains, LCUT's forward P/E of 14.37X is a premium to its peers 11.64X.

The Chart

LCUT recently hit a new multi-year high at $15.99 after breaking above some short-term resistance at $15. The MACD below the chart is bullish too, with the short-term moving average advancing ahead of its long-term counterpart. Look for support from the trend line an any weakness, take a look below.

Michael Vodicka is the Momentum Stock Strategist for He is also the Editor in charge of the new Zacks Momentum Trader Service.

Please login to or register to post a comment.