Q3 FY2026
Filed Nov 5, 2026Lifetime Brands Q3 2026: net sales up 3.4% and gross margin up 140 basis points, but GAAP operating result was break-even and full-year GAAP income guidance was lowered
Top-line growth, International sales growth and adjusted results were positive, and the company reports adjusted income from operations of $13.8 million against $11.5 million. GAAP operating income was $(20) thousand and Q3 GAAP net loss was $(4.2) million. The nine-month GAAP net income of $10.6 million depends on a $40.1 million tariff refund benefit. The GAAP income from operations and net income guidance ranges were lowered, while adjusted guidance was held.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, Q3 2026GAAP | $177.7M | – | $5.8 million, or 3.4% |
| Net sales increase, Q3 2026, constant currencynon-GAAP | $5.8 million, or 3.4% | – | – |
| Cost of sales, Q3 2026GAAP | $112.8M | – | – |
| Gross margin, Q3 2026GAAP | $64.9 million, or 36.5% | – | +140 basis points (CEO commentary) |
| Distribution expenses, Q3 2026GAAP | $26.11M | – | – |
| Selling, general and administrative expenses, Q3 2026GAAP | $38.2M | – | $2.7 million, or 7.6% |
| Restructuring expenses, Q3 2026GAAP | $640K | – | – |
| (Loss) income from operations, Q3 2026GAAP | −$20K | – | – |
| Adjusted income from operations, Q3 2026non-GAAP | $13.8 million ($13,756 thousand) | – | – |
| Interest expense, net, Q3 2026GAAP | −$2.11M | – | – |
| Loss on extinguishment of debt, Q3 2026GAAP | −$2.46M | – | – |
| Income tax benefit (provision), Q3 2026GAAP | $431 thousand benefit | – | – |
| Net loss, Q3 2026GAAP | $(4.2) million ($(4,195) thousand) | – | – |
| Diluted loss per share, Q3 2026GAAP | $(0.19) per diluted share | – | – |
| Adjusted net income, Q3 2026non-GAAP | $8.4 million ($8,402 thousand) | – | – |
| Adjusted diluted income per share, Q3 2026non-GAAP | $0.37 per diluted share | – | – |
| Net sales, nine months 2026GAAP | $462.8 million ($462,753 thousand) | – | $18.9 million, or 4.3% |
| Net sales increase, nine months 2026, constant currencynon-GAAP | $17.8 million, or 4.0% | – | – |
| Gross margin, nine months 2026GAAP | $212.3 million, or 45.9% | – | – |
| Cost of sales, nine months 2026GAAP | $250.4M | – | – |
| Distribution expenses, nine months 2026GAAP | $63.78M | – | – |
| Selling, general and administrative expenses, nine months 2026GAAP | $114.5 million ($114,517 thousand) | – | $10.0 million, or 9.6% |
| Restructuring expenses, nine months 2026GAAP | $4.65M | – | – |
| Income (loss) from operations, nine months 2026GAAP | $29.4 million ($29,375 thousand) | – | – |
| Adjusted income from operations, nine months 2026non-GAAP | $59.8 million ($59,765 thousand) | – | – |
| Interest expense, net, nine months 2026GAAP | −$10.74M | – | – |
| Tariff refund benefit, nine months 2026 (included in gross margin)GAAP | $40.1M | – | – |
| Net income, nine months 2026GAAP | $10.6 million ($10,642 thousand) | – | – |
| Diluted income per share, nine months 2026GAAP | $0.47 per diluted share | – | – |
| Adjusted net income, nine months 2026non-GAAP | $35.3 million ($35,282 thousand) | – | – |
| Adjusted diluted income per share, nine months 2026non-GAAP | $1.57 per diluted share | – | – |
| Adjusted EBITDA, trailing twelve months ended September 30, 2026non-GAAP | $84.5 million ($84,499 thousand) | – | – |
| Adjusted EBITDA, before limitation, trailing twelve months ended September 30, 2026non-GAAP | $92.37M | – | – |
| Adjusted EBITDA, less specified adjustment, trailing twelve months ended September 30, 2026non-GAAP | $44.4M | – | – |
| Net cash provided by operating activities, nine months 2026GAAP | $56.80M | – | – |
| Purchases of property and equipment, nine months 2026GAAP | −$8.67M | – | – |
| Liquidity as of September 30, 2026other | $123.3M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| U.S. segment, Q3 2026 net salesThe release prints no segment-level explanation for this change. | $161.3M | – | 2.0% |
| International segment, Q3 2026 net salesCEO statement: International sales grew 18.8% and the segment approached breakeven as Project Concord takes hold. The release prints no segment operating income. | $16.38M | – | 18.9% as reported; 18.8% in constant currency |
| U.S. segment, nine months 2026 net salesThe release prints no segment-level explanation for this change. The U.S. segment carried the warehouse relocation and redesign expenses and $2.0 million of the SKU rationalization charge, per the reconciliation footnotes. | $420.2M | – | 3.5% |
| International segment, nine months 2026 net salesThe release prints no segment-level explanation for this change. The International segment carried $1.3 million of the trailing twelve-month SKU rationalization charge, per the reconciliation footnotes. | $42.59M | – | 9.3% as reported; 12.3% in constant currency |
FY2026 (updated guidance, year ending December 31, 2026) outlook
- Revenue$660 to $700 million (previous $650 to $700 million)
- NoteIncome from operations: $42.5 to $45 million (previous $48 to $50.5 million)
- NoteAdjusted income from operations: $81.5 to $84 million (unchanged)
- NoteNet income: $19 to $20.5 million (previous $23 to $24.5 million)
- NoteAdjusted net income: $46 to $47.5 million (unchanged)
- NoteDiluted income per common share: $0.84 to $0.91 per share (previous $1.03 to $1.10 per share)
- NoteAdjusted diluted income per common share: $2.04 to $2.11 per share (previous $2.06 to $2.13 per share)
- NoteWeighted-average diluted shares: 22.5 million (previous 22.3 million)
- NoteAdjusted EBITDA, before limitation: $90.5 to $93 million (unchanged)
- NoteIncome tax expense in the Adjusted EBITDA reconciliation: $7.5 to $8.5 million (previous $8.5 to $9.5 million)
- NoteInterest expense, net, in the Adjusted EBITDA reconciliation: $13.5 million (previous $16.5 million, labelled interest expense)
Capital returns
- On November 3, 2026 the Board increased the share repurchase authorization so that $20 million (exclusive of fees and commissions) is available for repurchase as of the Effective Date. The release states that approximately $11.1 million was available before the Effective Date.
- The Repurchase Program has no expiration date and may be amended or terminated by the Board at any time without prior notice.
- On November 3, 2026 the Board declared a quarterly dividend of $0.0425 per share, payable February 12, 2027 to stockholders of record on January 29, 2027.
- Cash dividends paid in the nine months ended September 30, 2026 were $(2,936) thousand, compared with $(2,858) thousand in the nine months ended September 30, 2025.
- The cash flow statement prints no share repurchase line for the nine months ended September 30, 2026.
What drove it
- The release states that gross margin for the nine months ended September 30, 2026 included a tariff refund benefit of $40.1 million, and that net income for the period included a pre-tax tariff refund benefit of $40.1 million. The release links this benefit to the February 20, 2026 U.S. Supreme Court ruling on IEEPA tariffs.
- The release states that Q3 gross margin included a $3.3 million inventory reserve charge associated with a SKU rationalization.
- The release states that Q3 2026 loss from operations included the $3.3 million SKU rationalization charge, and that the Q3 net loss included the same charge.
- The release states that the prior-year nine-month SG&A included a net legal settlement gain of $6.4 million, and that the prior-year nine-month loss from operations included a non-cash goodwill impairment charge of $33.2 million related to the U.S. segment.
- The CEO states that the International segment approached breakeven as Project Concord takes hold, that home decor continues to grow, that the Farberware relaunch is performing well, and that the Dollar General partnership, launched in 2024, is on track to approach $20 million in sales this year.
- The CEO states that this year's refinancing lowered borrowing costs and strengthened financial flexibility. The release prints a Q3 loss on extinguishment of debt of $(2,456) thousand.
Concerns
- Q3 GAAP loss from operations was $(20) thousand, against income from operations of $6,693 thousand in Q3 2025. The release describes the period as zero, and the table prints $(20) thousand.
- Q3 GAAP net loss was $(4.2) million, or $(0.19) per diluted share, against a net loss of $(1.2) million, or $(0.05) per diluted share, in Q3 2025.
- The GAAP full-year guidance for income from operations was lowered to $42.5 to $45 million from $48 to $50.5 million. Net income guidance was lowered to $19 to $20.5 million from $23 to $24.5 million. Diluted EPS guidance was lowered to $0.84 to $0.91 from $1.03 to $1.10.
- Nine-month GAAP net income of $10.6 million includes the $40.1 million tariff refund benefit. The release does not split operating results excluding that benefit on a GAAP basis.
- Q3 warehouse relocation and redesign expenses were $5,341 thousand, against $76 thousand in Q3 2025, and are excluded from adjusted results.
- Cash was $5,934 thousand at September 30, 2026, and the revolving credit facility balance was $89,858 thousand. The release also prints $123.3 million of liquidity that includes $96.4 million of ABL availability and $21.0 million of Receivables Purchase Agreement funding.
- The release states that trailing twelve-month Adjusted EBITDA of $84.5 million reflects a permitted non-recurring charge limitation of $(7,873) thousand, and that Adjusted EBITDA less the IEEPA tariff refund adjustment for covenant purposes was $44.4 million.
- Inventory rose to $214,588 thousand from $194,046 thousand at December 31, 2025, and operating lease liabilities rose to $94,088 thousand from $42,442 thousand.
What to watch
- Investor Day on December 1, 2026, where the CEO said management will share its capital allocation strategy and 2027 tailwinds.
- Execution of the $20 million share repurchase authorization, given the release states the timing depends on share price, debt agreements and other factors.
- International segment progress toward breakeven and the Project Concord plan, including the 18.8% constant currency growth reported for Q3.
- Gross margin trend after the $3.3 million SKU rationalization charge and without the $40.1 million tariff refund benefit.
- Full-year GAAP guidance, which now carries higher warehouse relocation and redesign expenses of $9.5 million and restructuring expenses of $7 million.
- Revolving credit facility and term loan balances, and the covenant-defined Adjusted EBITDA of $44.4 million that excludes the tariff refund.
Balance sheet and cash flow
- Cash and cash equivalents: $5,934 thousand at September 30, 2026, compared with $4,267 thousand at December 31, 2025.
- Liquidity at September 30, 2026: $123.3 million, consisting of $5.9 million of cash, $96.4 million of ABL Agreement availability and $21.0 million of available funding under the Receivables Purchase Agreement.
- Revolving credit facility (non-current): $89,858 thousand at September 30, 2026, compared with $54,105 thousand at December 31, 2025.
- Term loan (non-current): $58,351 thousand at September 30, 2026, compared with $125,927 thousand at December 31, 2025. Current maturity of term loan: nil at September 30, 2026, compared with $5,022 thousand at December 31, 2025.
- Inventory: $214,588 thousand at September 30, 2026, compared with $194,046 thousand at December 31, 2025.
- Accounts receivable, net: $154,381 thousand at September 30, 2026, compared with $161,861 thousand at December 31, 2025.
- Operating lease liabilities (non-current): $94,088 thousand at September 30, 2026, compared with $42,442 thousand at December 31, 2025. Operating lease right-of-use assets: $92,024 thousand, compared with $48,506 thousand.
- Total assets: $629,851 thousand at September 30, 2026, compared with $572,555 thousand at December 31, 2025.
- Total stockholders' equity: $213,218 thousand at September 30, 2026, compared with $202,277 thousand at December 31, 2025.
- Payments on finance costs in the nine months ended September 30, 2026: $(4,653) thousand. Proceeds from term loan: $60,000 thousand. Repayments of term loan: $(135,000) thousand.
- Net cash provided by operating activities for the nine months ended September 30, 2026 was $56,797 thousand, compared with $3,870 thousand for the nine months ended September 30, 2025. The release prints a working-capital change of $31,645 thousand for accounts payable, accrued expenses and other liabilities, and a change of $(20,911) thousand for inventory.
Analysis
Lifetime Brands reported Q3 2026 net sales of $177.7 million, up $5.8 million or 3.4% from $171.9 million, with U.S. sales up 2.0% and International sales up 18.9% as reported (18.8% in constant currency). Nine-month net sales were $462.8 million, up 4.3%, or 4.0% in constant currency. The International segment is the fastest-growing line in the filing, and the CEO attributes its progress toward breakeven to Project Concord. The release does not print segment operating income, so the breakeven claim cannot be checked from the tables.
Q3 gross margin was $64.9 million, or 36.5%, against $60.4 million, or 35.1%, a year earlier. The CEO cites a 140 basis point expansion. This figure already includes a $3.3 million inventory reserve charge tied to the SKU rationalization. Q3 distribution expenses rose to $26,107 thousand from $17,939 thousand, and SG&A rose $2.7 million, or 7.6%, to $38.2 million. Q3 loss from operations was $(20) thousand against income of $6,693 thousand a year earlier, and the Q3 net loss was $(4.2) million, or $(0.19) per diluted share. The release attributes the operating result partly to the SKU charge and reports warehouse relocation and redesign expenses of $5,341 thousand in the quarter.
On an adjusted basis, Q3 income from operations was $13.8 million against $11.5 million, and adjusted diluted EPS was $0.37 against $0.11. Nine-month results are more favorable on a GAAP basis, with income from operations of $29.4 million and net income of $10.6 million, or $0.47 per diluted share. The nine-month gross margin of $212.3 million, or 45.9%, includes a $40.1 million tariff refund benefit, which the release ties to the February 20, 2026 U.S. Supreme Court ruling. Without that item, the filing does not print a GAAP figure, so the underlying nine-month margin is not stated.
Capital allocation changed in the period. Net cash from operations for nine months was $56,797 thousand, against $3,870 thousand a year earlier, and term loan balances fell to $58,351 thousand from $125,927 thousand, while the revolver rose to $89,858 thousand from $54,105 thousand. Cash was $5,934 thousand. The Board raised the repurchase authorization to $20 million from about $11.1 million, and declared a $0.0425 quarterly dividend. Inventory and operating lease liabilities both rose on the balance sheet.
The full-year guidance is mixed. Net sales guidance was narrowed to $660 to $700 million from $650 to $700 million. Income from operations guidance was lowered to $42.5 to $45 million from $48 to $50.5 million, net income guidance was lowered to $19 to $20.5 million from $23 to $24.5 million, and diluted EPS guidance was lowered to $0.84 to $0.91 from $1.03 to $1.10. Adjusted income from operations, adjusted net income and adjusted EBITDA guidance were held. The release does not state the reasons for the GAAP reductions beyond the reconciliation items, which add $9.5 million of warehouse relocation and redesign expenses and $3.5 million of SKU rationalization, and the higher interest expense and tax lines.
Management, verbatim
We delivered net sales growth of 3.4% and expanded gross margin by 140 basis points in the third quarter as momentum continues across key parts of the business. International sales grew 18.8% and the segment approached breakeven as Project Concord takes hold.
Rob Kay, Chief Executive Officer
This year’s refinancing lowered our borrowing costs and strengthened our financial flexibility, and our new $20 million share repurchase authorization provides additional flexibility to return capital to shareholders.
Rob Kay, Chief Executive Officer
Not in the filing
stated, not guessed- Prior-year Q3 figures for the change in cost of sales and distribution expenses were not printed as changes, so yoy_change is null for these lines.
- Q3 percentage change for adjusted income from operations, adjusted net income and adjusted EPS was not printed, so yoy_change is null.
- Q3 prior-quarter (sequential) figures were not printed, so qoq_change is null throughout.
- The Q3 gross margin change of 140 basis points is printed only in CEO commentary, not in the statements table.
- Segment operating income or segment profit was not printed for U.S. or International.
- Gross margin, operating expense and tax rate guidance was not printed for FY2026, so those guidance fields are null.
- The previous release's outlook was not supplied as a separate input, so vs_prior_guidance is empty. The filing does print a previous guidance table, which is summarized in the guidance field.
- Share repurchases executed in the nine months ended September 30, 2026 were not printed; the cash flow statement has no repurchase line.
- The release states loss from operations was zero for Q3 2026, but the statement of operations prints $(20) thousand. Both are reported as printed.
- Dividend payments reported in the cash flow statement are not reconciled to the declared quarterly dividend in the release.
- Income from operations and net income excluding the tariff refund benefit were not printed on a GAAP basis for the nine-month period.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.