Manufacturer of kitchenware, home and tableware products Lifetime Brands (LCUT 15.76, +1.31) trades about 9.1% higher in reaction to this morning’s Q4 report in which the company beat market expectations for earnings and revenues.
Before we get into the results, let’s take a quick look at LCUT. For those of you who may not be familiar, LCUT is the company behind the well-known KitchenAid and Farberware kitchenware brands. The company also owns tableware brands Mikasa and Pfaltzgraff as well as home brands like Bombay and Debbie Meyer. At the end of fiscal year 2016, the Garden City, New York-based company garnered nearly $592.62 million in net sales, a less than 1% gain company to the prior year.
Getting back to the results, LCUT reported a stellar quarter as earnings per share of $1.03 and revenues of $193.5 million both came in ahead of market expectations.
Gains in US Wholesale were slightly offset by losses in LCUT’s International segment as reported on a constant currency basis. In US Wholesale, net sales were up about 6.5% to $156.4 million in the period. International net sales slipped about -7.2% to $29.10 million with the smaller Retail Direct segment posting net sales growth better than 5% to $8.0 million in Q4. Additionally, gross margins were $75.0 million, or 38.8%, as compared to $69.0 million, or 37.1%, for the corresponding period in 2015.
Looking ahead, LCUT gave 2017 guidance of low-to mid-single digit overall organic sales growth, with expectations for the Lifetime Next initiative to drive operations.
Heading into the print this morning, LCUT was rather soft as thus far in 2017 shares have lost better than 12% of their value. The better than expected print fell on wanting ears today as investors have rewarded the stock thus far, despite the stock trading modestly off intraday highs.