Lifetime Brands’s growth initiative pays off in Q1
Lifetime Brands, a leading global provider of branded kitchenware, tableware and other products used in the home, is seeing the results of its aggressive growth strategy — which included the acquisition of four businesses during the period — in the first quarter ended March 31.
Consolidated net sales for the quarter were $118.4 million, soaring 20% from $98.7 million for the corresponding period in 2013.
Consolidated net sales for the company’s wholesale segment were $113.8 million, another two-digit increase, of 22.2% this time, compared to net sales of $93.1 million for the corresponding period in 2013. Consolidated net wholesale sales in the 2014 period included $17.1 million of net sales from Kitchen Craft and other acquisitions that were completed in the first quarter of 2014.
In January, the company acquired Thomas Plant (Birmingham) Limited. Trading as Kitchen Craft, Thomas Plant is one of the United Kingdom’s leading suppliers of kitchenware products and accessories. The company’s broad ranges of housewares products are marketed under what chairman and CEO Jeffrey Siegel called “well-known proprietary, customer-exclusive and private label brands” to more than 2,600 retailers in the U.K. and in upwards of 70 countries worldwide.
In February, the company purchased the intellectual property and certain assets of Built NY, a designer and distributor of lunch boxes, wine bags and baby accessories.
“The acquisition of Built brings us new and exciting product classifications and provides us access to a broad base of independent retailers in more than 60 countries worldwide,” said Siegel.
Also in February, the company acquired the intellectual property and certain assets of Empire Silver Company, a U.S. manufacturer of sterling silver and pewter gift items, principally baby cups, rattles and hollowware.
In March, it purchased the business and certain assets of La Cafetière Ltd., a supplier of products to brew and serve coffee and tea; further broadening the company’s product classifications and strengthening its presence in the U.K. and Continental Europe.
Of these acquisitions, only Kitchen Craft recorded any significant revenues during the first quarter. However, Siegel expects all four to be running smoothly in the second half of the year and to add more than $75 million in net sales and significantly to increase the company’s net income and diluted earnings per share in 2014.
“In addition, we will begin supplying kitchenware products to almost 400 Walmart stores in China in the second half of this year,” added Siegel. “On our last conference call, we stated that, for all of 2014, we foresaw sales increasing by approximately 5% organically and approximately 15% from acquisitions, to a total of approximately $600 million. Today, we are reaffirming that guidance.”