Form 10-Q - Quarterly report [Sections 13 or 15(d)]

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

__________________________

FORM 10-Q

__________________________

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: March 31, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 0-19254

__________________________

LIFETIME BRANDS, INC.

(Exact name of registrant as specified in its charter)

__________________________


Delaware			11-2682486
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

1000 Stewart Avenue, Garden City, New York 11530

(Address of principal executive offices) (Zip Code)

(516) 683-6000

(Registrant’s telephone number, including area code)

__________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading
Symbol(s)

Name of each exchange
on which registered

Common Stock, $.01 par value

LCUT

The Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☒

Non-accelerated filer

☐

Smaller reporting company

☒

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares of the registrant’s common stock outstanding as of April 30, 2025 was 22,414,005.

Table of Contents

LIFETIME BRANDS, INC.

FORM 10-Q

FOR THE QUARTER ENDED MARCH 31, 2025

INDEX


		Page No.

Part I.	Financial Information

Item 1.	Financial Statements

	Condensed Consolidated Balance Sheets – March 31, 2025 (unaudited) and December 31, 2024	2

	Condensed Consolidated Statements of Operations (unaudited) – Three Months Ended March 31, 2025 and 2024	3

	Condensed Consolidated Statements of Comprehensive Loss (unaudited) – Three Months Ended March 31, 2025 and 2024	4

	Condensed Consolidated Statements of Stockholders’ Equity (unaudited) –Three Months Ended March 31, 2025 and 2024	5

	Condensed Consolidated Statements of Cash Flows (unaudited) – Three Months Ended March 31, 2025 and 2024	6

	Notes to Condensed Consolidated Financial Statements (unaudited)	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	38

Item 4.	Controls and Procedures	38

Part II.	Other Information

Item 1.	Legal Proceedings	38

Item 1A.	Risk Factors	38

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	39


Item 5.	Other Information	39

Item 6.	Exhibits	40

Signatures		41

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

LIFETIME BRANDS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)


	March 31, 2025		December 31, 2024
	(unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	10,375	$	2,929
Accounts receivable, less allowances of $13,861 at March 31, 2025 and $14,093 at December 31, 2024	105,710		156,743
Inventory	210,053		202,408
Prepaid expenses and other current assets	14,467		11,488

TOTAL CURRENT ASSETS	340,605		373,568
PROPERTY AND EQUIPMENT, net	15,481		15,049
OPERATING LEASE RIGHT-OF-USE ASSETS	56,914		59,571

INTANGIBLE ASSETS, net	179,197		183,527
OTHER ASSETS	2,396		2,595

TOTAL ASSETS	$	594,593	$	634,310
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Current maturity of term loan	$	4,926	$	4,891


Accounts payable	45,524		60,029
Accrued expenses	57,839		70,848
Income taxes payable	491		830
Current portion of operating lease liabilities	15,403		15,145
TOTAL CURRENT LIABILITIES	124,183		151,743
OTHER LONG-TERM LIABILITIES	16,023		15,955
INCOME TAXES PAYABLE, LONG-TERM	706		706
OPERATING LEASE LIABILITIES	53,305		56,740
DEFERRED INCOME TAXES	5,665		5,601
REVOLVING CREDIT FACILITY	39,328		42,693
TERM LOAN	129,707		130,949
STOCKHOLDERS’ EQUITY
Preferred stock, $1.00 par value, shares authorized: 100 shares of Series A and 2,000,000 shares of Series B; none issued and outstanding	—		—
Common stock, $0.01 par value, shares authorized: 50,000,000 at March 31, 2025 and December 31, 2024; shares issued and outstanding: 22,414,005 at March 31, 2025 and 22,155,735 at December 31, 2024	224		222
Paid-in capital	281,211		280,566
Accumulated deficit	(37,736)		(32,550)
Accumulated other comprehensive loss	(18,023)		(18,315)
TOTAL STOCKHOLDERS’ EQUITY	225,676		229,923
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	594,593	$	634,310

See accompanying notes to unaudited condensed consolidated financial statements.

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LIFETIME BRANDS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)


	Three Months Ended March 31,
	2025		2024
Net sales	$	140,085	$	142,242
Cost of sales	89,448		84,695
Gross margin	50,637		57,547
Distribution expenses	18,070		16,181
Selling, general and administrative expenses	31,468		39,536


Income from operations	1,099		1,830
Interest expense	(4,915)		(5,614)
Mark to market loss on interest rate derivatives	(527)		(174)


Loss before income taxes and equity in losses	(4,343)		(3,958)
Income tax benefit (provision)	142		(210)
Equity in losses, net of taxes	—		(2,092)

NET LOSS	$	(4,201)	$	(6,260)
BASIC LOSS PER COMMON SHARE	$	(0.19)	$	(0.29)
DILUTED LOSS PER COMMON SHARE	$	(0.19)	$	(0.29)

See accompanying notes to unaudited condensed consolidated financial statements.

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LIFETIME BRANDS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(in thousands)

(unaudited)


	Three Months Ended March 31,
	2025		2024
Net loss	$	(4,201)	$	(6,260)
Other comprehensive income, net of taxes:
Net change in translation adjustment	417		40
Net change in cash flow hedges	(129)		201
Effect of retirement benefit obligations	4		13
Other comprehensive income, net of taxes	292		254
Comprehensive loss	$	(3,909)	$	(6,006)

See accompanying notes to unaudited condensed consolidated financial statements.

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LIFETIME BRANDS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in thousands)

(unaudited)


	Common stock			Paid-in capital		Accumulated deficit		Accumulated other comprehensive loss		Total
	Shares	Amount
BALANCE AT DECEMBER 31, 2024	22,156	$	222	$	280,566	$	(32,550)	$	(18,315)	$	229,923
Net loss	—	—		—		(4,201)		—		(4,201)
Other comprehensive income, net of taxes	—	—		—		—		292		292

Net issuance of restricted shares granted to employees	338	3		(3)		—		—		—
Stock compensation expense	—	—		1,063		—		—		1,063
Shares effectively repurchased for required employee withholding taxes	(80)	(1)		(415)		—		—		(416)

Dividends (1)	—	—		—		(985)		—		(985)
BALANCE AT MARCH 31, 2025	22,414	$	224	$	281,211	$	(37,736)	$	(18,023)	$	225,676


	Common stock			Paid-in capital		Accumulated deficit		Accumulated other comprehensive loss		Total
	Shares	Amount
BALANCE AT DECEMBER 31, 2023	21,813	$	218	$	277,728	$	(13,568)	$	(33,499)	$	230,879
Net loss	—	—		—		(6,260)		—		(6,260)
Other comprehensive income, net of taxes	—	—		—		—		254		254
Performance shares issued to employees	152	2		(2)		—		—		—
Net issuance of restricted shares granted to employees	213	2		(2)		—		—		—
Stock compensation expense	—	—		799		—		—		799
Shares effectively repurchased for required employee withholding taxes	(105)	(1)		(1,027)		—		—		(1,028)

Dividends (1)	—	—		—		(943)		—		(943)
BALANCE AT MARCH 31, 2024	22,073	$	221	$	277,496	$	(20,771)	$	(33,245)	$	223,701

(1) Cash dividends declared per share of common stock were $0.0425 and $0.0425 in the three months ended March 31, 2025 and 2024, respectively.

See accompanying notes to unaudited condensed consolidated financial statements.

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LIFETIME BRANDS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands) (unaudited)


	Three Months Ended March 31,
	2025		2024
OPERATING ACTIVITIES
Net loss	$	(4,201)	$	(6,260)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	5,698		4,939

Amortization of financing costs	704		739
Mark to market loss on interest rate derivatives	527		174
Operating leases, net	(556)		(455)
Provision for doubtful accounts	704		195

Stock compensation expense	1,062		807
Equity in losses, net of taxes	—		2,092




Changes in operating assets and liabilities
Accounts receivable	50,832		41,119
Inventory	(6,324)		(1,566)
Prepaid expenses, other current assets and other assets	(3,345)		3,159
Accounts payable, accrued expenses and other liabilities	(28,038)		(34,359)

Income taxes payable	(352)		(71)

NET CASH PROVIDED BY OPERATING ACTIVITIES	16,711		10,513
INVESTING ACTIVITIES
Purchases of property and equipment	(1,573)		(600)



NET CASH USED IN INVESTING ACTIVITIES	(1,573)		(600)
FINANCING ACTIVITIES
Proceeds from revolving credit facility	88,894		51,484
Repayments of revolving credit facility	(93,363)		(70,822)
Repayments of term loan	(1,875)		—




Payments for finance lease obligations	(11)		(7)
Payments of tax withholding for stock based compensation	(416)		(1,028)


Cash dividends paid	(996)		(1,026)

NET CASH USED IN FINANCING ACTIVITIES	(7,767)		(21,399)
Effect of foreign exchange on cash	75		(64)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	7,446		(11,550)
Cash and cash equivalents at beginning of period	2,929		16,189
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	10,375	$	4,639

See accompanying notes to unaudited condensed consolidated financial statements.

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LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025

(unaudited)

NOTE 1 — BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES

Organization and business

Lifetime Brands, Inc. (“the Company”) designs, sources and sells branded kitchenware, tableware and other products used in the home and markets its products under a number of widely-recognized brand names and trademarks, which are either owned or licensed by the Company or through retailers’ private labels and their licensed brands. The Company’s products, which are targeted primarily towards consumers purchasing moderately priced kitchenware, tableware and housewares, are sold through nearly every major level of trade. The Company generally markets several lines within each of its product categories under more than one brand. The Company sells its products directly to retailers (who may resell the Company’s products through their websites) and, to a lesser extent, to distributors. The Company also sells a limited selection of its products directly to consumers through its own websites.

Basis of presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Quarterly Reports on Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments, which consist of normal recurring accruals and non-recurring adjustments, considered necessary for a fair presentation have been included.

These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

Operating results for the three months ended March 31, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025.

The Company’s business and working capital needs are seasonal, with a majority of sales occurring in the third and fourth quarters. In 2024 and 2023, net sales for the third and fourth quarters accounted for 58% and 57% of total annual net sales, respectively. In anticipation of the pre-holiday shipping season, inventory levels increase primarily in the June through October time period. The increase in inventory levels at March 31, 2025 compared to December 31, 2024 was due to preemptive measures taken in anticipation of, and designed to mitigate, the impact of the tariffs that went into effective in April 2025.

The Company’s current estimates contemplate current and expected future conditions, as applicable; however it is reasonably possible that actual conditions could differ from expectations, which could materially affect the Company’s results of operations and financial position.

Revenue recognition

The Company sells products wholesale, to retailers and distributors, and retail, directly to the consumer. Wholesale sales and retail sales are primarily recognized at the point in time the customer obtains control of the products, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products.

The Company offers various sales incentives and promotional programs to its customers in the normal course of business. These incentives and promotions typically include arrangements such as cooperative advertising, buydowns, volume rebates and discounts. These arrangements and an estimate for products expected to be returned are reflected as reductions of revenue at the time of sale. See NOTE 2 —REVENUE to the unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information.

Cost of sales

Cost of sales consist primarily of costs associated with the production and procurement of product, inbound freight costs, purchasing costs, handling costs, duties and tariffs, royalties, and other product procurement related charges.

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LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025

(unaudited)

Distribution expenses

Distribution expenses consist primarily of warehousing expenses and freight-out expenses.

Accounts receivable

The Company periodically reviews the collectability of its accounts receivable and establishes allowances for estimated credit losses that could result from the inability of its customers to make required payments, taking into consideration customer credit history and financial condition, industry and market segment information, credit reports, and expectations of current and future economic conditions. A considerable amount of judgment is required to assess the ultimate realization of these receivables including assessing the initial and on-going creditworthiness of the Company’s customers.

The Company also maintains an allowance for anticipated customer deductions. Contractual deductions for incentives and promotions granted to customers such as cooperative advertising, are recorded as a reduction to accounts receivable at the time of sale. These deductions are primarily fixed amounts; however, in certain cases, these deductions are not fixed and, therefore, the allowance is estimated based on currently available information and historical trends of deductions.

Receivable purchase agreement

The Company has an uncommitted Receivables Purchase Agreement with HSBC Bank USA, National Association (“HSBC”) as Purchaser (the “Receivables Purchase Agreement”). The sale of accounts receivable, under the Receivables Purchase Agreement with HSBC, is excluded from the Company’s unaudited condensed consolidated balance sheets at the time of sale and the related sale expense is included in selling, general and administrative expenses in the Company’s unaudited condensed consolidated statements of operations. The Company did not sell receivables to HSBC during the three months ended March 31, 2025 and March 31, 2024.

At March 31, 2025, $16.0 million of accounts receivables were available for sale to HSBC, net of applicable charges.

Inventory

Inventory consists principally of finished goods sourced from third-party suppliers. Inventory also includes finished goods, work in process and raw materials related to the Company’s manufacture of sterling silver products. Inventory is priced using the lower of cost (first-in, first-out basis) or net realizable value. The Company estimates the selling price of its inventory on a product-by-product basis based on the current selling environment. If the estimated selling price is lower than the inventory’s cost, the Company reduces the value of the inventory to its net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable cost of completion, disposal and transportation.

The components of inventory were as follows (in thousands):


	March 31, 2025		December 31, 2024
Finished goods	$	199,526	$	192,480
Work in process	141		62
Raw materials	10,386		9,866
Total	$	210,053	$	202,408

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LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025

(unaudited)

Fair value of financial instruments

The Company determined that the carrying amounts of cash and cash equivalents, accounts receivable and accounts payable are reasonable estimates of their fair values because of their short-term nature. The Company determined that the carrying amounts of borrowings outstanding under its ABL Agreement and Term Loan (each as defined in NOTE 6 — DEBT to the unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q) approximate fair value since such borrowings bear interest at variable market rates.

Derivatives

The Company accounts for derivative instruments in accordance with Accounting Standard Codification (“ASC”) Topic 815, Derivatives and Hedging (“ASC 815”). ASC 815 requires that all derivative instruments be recognized on the balance sheet at fair value as either an asset or liability. Changes in the fair value of derivatives that qualify as hedges and have been designated as part of a hedging relationship for accounting purposes are included in accumulated other comprehensive loss and are subsequently recognized in the Company’s unaudited condensed consolidated statements of operations in the same period that the hedged items are recognized in earnings. Changes in fair value of derivatives that do not qualify as hedging instruments for accounting purposes are recorded in the Company’s unaudited condensed consolidated statements of operations.

Goodwill, intangible assets and long-lived assets

Goodwill is not amortized but, instead, subject to an annual impairment assessment on October 1 or more frequently if events or conditions were to indicate the carrying value of a reporting unit may not be recoverable.

As it relates to the goodwill assessment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the quantitative goodwill impairment testing described in the Financial Accounting Standards Board's (“FASB”) ASC Topic 350, Intangibles – Goodwill and Other. If, after assessing qualitative factors, the Company determines that it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, then no further testing is performed for that reporting unit. However, if based on the Company’s qualitative assessment it concludes that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, or if the Company elects to bypass the qualitative assessment, the Company will proceed with performing the quantitative impairment test. Impairment testing is based upon the best information available, including estimates of fair value which incorporate assumptions marketplace participants would use in making their estimates of fair value. The Company performed its annual impairment assessment of its U.S. reporting unit as of October 1, 2024 by comparing the fair value of the reporting unit with its carrying value. The Company performed the analysis using a discounted cash flow and market multiple method. As of October 1, 2024, the fair value of the U.S. reporting unit exceeded the carrying value of goodwill by 5%.

The significant assumptions used under the income approach, or discounted cash flow method, are projected net sales, projected earnings before interest, tax, depreciation and amortization (“EBITDA”), and the cost of capital. Projected net sales and projected EBITDA were determined to be significant assumptions because they are the primary drivers of the projected cash flows in the discounted cash flow fair value model. Cost of capital was also determined to be a significant assumption as it is the discount rate used to calculate the current fair value of those projected cash flows. The calculation of cost of capital includes a number of subjective inputs, including a company-specific risk premium to capture the perceived risks associated with the reporting unit’s projected cash flows used in the discounted cash flow method.

Determining fair value using a market approach considers multiples of financial metrics based on both acquisitions and trading multiples of a selected peer group of companies. From the comparable companies, a representative market multiple is determined which is applied to financial metrics to estimate the fair value of a reporting unit.

Although the Company believes the assumptions and estimates made are reasonable and appropriate, different assumptions and estimates could materially impact its reported financial results. In addition, sustained declines in the Company’s stock price and related market capitalization could impact key assumptions in the overall estimated fair values of its reporting units and could result in non-cash impairment charges that could be material to the Company’s consolidated balance sheet or results of operations. Should the carrying value of a reporting unit be in excess of the estimated fair value of that reporting unit, an impairment charge will be recorded to reduce the reporting unit to fair value.

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LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025

(unaudited)

Long-lived assets, including intangible assets deemed to have finite lives, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Impairment indicators include, among other conditions, cash flow deficits, historic or anticipated declines in revenue or operating profit or material adverse changes in the business climate that indicate that the carrying amount of an asset may be impaired. When impairment indicators are present, the recoverability of the asset is measured by comparing the carrying value of the asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the asset is not recoverable, the impairment to be recognized is measured by the amount by which the carrying amount of each long-lived asset exceeds the fair value of the asset.

The Company purchases almost all of its product from third-party manufacturers outside the U.S., primarily in China. This concentration in suppliers exposes the Company to risks associated with doing business globally, including risks relating to the tariffs recently implemented and that may be implemented in the future.

As of April 9, 2025, the U.S. has imposed an aggregate 145% tariff on imports from China. Other recent tariff policy updates that went into effect in April 2025 include a 10% universal tariff for all countries and reciprocal tariffs for specific countries, which have been paused for 90 days. As the Company sources almost all of its products from suppliers located outside the United States, primarily in China, any new or increased tariffs, quotas, embargoes, or other trade barriers could impact our supply chain and cost structure. Additionally, retaliatory measures by affected countries, could further disrupt operations or reduce our competitiveness in international markets. The Company continues to monitor these changing tariffs and trade restrictions. The Company is developing a plan to mitigate the impact of the increase price of goods imported by the Company into the U.S. The Company may seek to increase prices to its customers, negotiate product costs with its suppliers and further diversify its imports to countries that are expected to be subject to lower tariffs. To the extent the tariffs remain in place and the Company cannot mitigate the impact of the increase on the price of goods imported by the Company into the U.S., it may result in lower gross margin that the Company realizes from the sale of its products which could materially adversely affect the Company’s results of operations and financial condition and result in an impairment of our long-lived assets, including goodwill within the U.S. segment reporting unit.

See NOTE 5 — INTANGIBLE ASSETS to the unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information.

Leases

The Company determines if an arrangement is a lease at the inception of a contract. Operating lease right-of-use (“ROU”) assets are included in operating lease right-of-use assets on the condensed consolidated balance sheets. The current and long-term components of operating lease liabilities are included in the current portion of operating lease liability and operating lease liabilities, respectively, on the condensed consolidated balance sheets. Finance leases are included in property and equipment, net, accrued expenses and other long-term liabilities. The Company’s finance leases are not material to the Company’s condensed consolidated balance sheets.

Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. The operating lease ROU asset may also include any lease payments made, adjusted for any prepaid or accrued rent payments, lease incentives, and initial direct costs incurred. Certain leases may include options to extend or terminate the lease. Periods to extend the lease are included in the lease term when the Company is reasonably certain that the extension option would be exercised, and the associated lease payments for such periods are reflected in the ROU asset and lease liability. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.

For certain equipment leases, the Company applies a portfolio approach to effectively account for any ROU assets and lease liabilities. Leases with an initial term of twelve months or less are not recorded on the balance sheet.

The Company has elected the practical expedient to account for each separate lease component of a contract and its associated non-lease components as a single lease component, thus causing all fixed payments to be capitalized.

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LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025

(unaudited)

New accounting pronouncements

Updates not listed below were assessed and either determined to not be applicable or are expected to have a minimal effect on the Company’s financial position, results of operations, and disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures: This guidance is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in ASU 2023-09 address investor requests for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. Early adoption is permitted. The new guidance is effective for public business entities for annual periods beginning after December 15, 2024 on a prospective basis. Retrospective application is permitted. Management is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The guidance requires additional disclosure in the notes to the financial statements for specified information about certain costs and expenses. The new guidance is effective for public business entities for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027. Early adoption is permitted. The amendments in this ASU may be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of this ASU or (2) retrospectively to all prior periods presented in the financial statements. Management is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures.

NOTE 2 —REVENUE

The Company sells products wholesale, to retailers and distributors, and retail, directly to consumers. Wholesale sales and retail sales are recognized at the point in time the customer obtains control of the products in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products. To indicate the transfer of control, the Company must have a present right to payment, legal title must have passed to the customer, the customer must have the significant risks and rewards of ownership, and where acceptance is not a formality, the customer must have accepted the product or service. The Company’s principal terms of sale are Free On Board (“FOB”) Shipping Point, or equivalent, and, as such, the Company primarily transfers control and records revenue for product sales upon shipment. Sales arrangements with delivery terms that are not FOB Shipping Point are not recognized upon shipment and the transfer of control for revenue recognition is evaluated based on the associated shipping terms and customer obligations. Shipping and handling fees that are billed to customers in sales transactions are included in net sales and amounted to $0.7 million and $0.6 million for the three months ended March 31, 2025 and 2024, respectively. Net sales exclude taxes that are collected from customers and remitted to the taxing authorities.

The Company offers various sales incentives and promotional programs to its wholesale customers from time to time in the normal course of business. These incentives and promotions typically include arrangements such as cooperative advertising, buydowns, volume rebates and discounts. These sales incentives and promotions represent variable consideration and are reflected as reductions in net sales in the Company’s unaudited condensed consolidated statements of operations. While many of the sales incentives and promotions are contractually agreed upon with the Company’s customers, certain of the sales incentives and promotions are non-contractual and require the Company to estimate the amount of variable consideration based on historical experience and other known factors or as the most likely amount in a range of possible outcomes. On a quarterly basis, variable consideration is assessed on a portfolio approach in estimating the extent to which the components of variable consideration are constrained. Payment terms vary by customer, but generally range from 30 to 90 days or at the point of sale for the Company’s retail direct sales.

The Company incurs certain direct incremental costs to obtain contracts with customers, such as sales-related commissions, where the recognition period for the related revenue is less than one year. These costs are expensed as incurred and recorded within selling, general and administrative expenses in the unaudited condensed consolidated statements of operations. Incidental items that are immaterial in the context of the contract are expensed as incurred.

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LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025

(unaudited)

The following tables present the Company’s net sales disaggregated by segment, product category and geographic region for the three months ended March 31, 2025 and 2024 (in thousands):


	Three Months Ended
	March 31,
	2025		2024
U.S. segment
Kitchenware	$	79,521	$	83,530
Tableware	27,577		25,759
Home Solutions	21,412		21,191
Total U.S. segment	128,510		130,480



International segment	11,575		11,762
Total net sales	$	140,085	$	142,242

United States	$	124,205	$	126,134
United Kingdom	6,954		7,466
Rest of World	8,926		8,642
Total net sales	$	140,085	$	142,242

NOTE 3 — LEASES

The Company has operating leases for corporate offices, distribution facilities, a manufacturing plant, and certain vehicles.

The components of lease expense for the three months ended March 31, 2025 and 2024 were as follows (in thousands):


	Three Months Ended March 31,
	2025		2024
Operating lease expenses(1):
Fixed lease expense	$	4,258	$	4,263
Variable lease expense	1,753		1,368
Total	$	6,011	$	5,631

(1) Expenses are recorded within distribution expenses and selling, general and administrative expenses on the unaudited condensed consolidated statement of operations.

Supplemental cash flow information for lease related liabilities and assets for the three months ended March 31, 2025 and 2024 were as follows (in thousands):


	Three Months Ended March 31,
	2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	4,814	$	4,718


	Three Months Ended March 31,
	2025		2024
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	—	$	—

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LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025

(unaudited)

The aggregate future lease payments for operating leases as of March 31, 2025 were as follows (in thousands):


	Operating
2025 (excluding the three months ended March 31, 2025)	$	14,458
2026	18,916
2027	14,678
2028	12,888
2029	6,735
2030	4,914
Thereafter	8,953
Total lease payments	81,542
Less: Interest	(12,834)
Present value of lease payments	$	68,708

Average lease terms and discount rates were as follows:


	March 31, 2025
Operating leases:
Weighted-average remaining lease term (years)	5.1
Weighted-average discount rate	6.6	%

On January 23, 2025, the Company entered into a lease agreement for a new distribution center in Hagerstown, Maryland

(“Hagerstown Facility”). The term of the lease is 180 months following the rent commencement date, which will occur in the first quarter of 2026. Base rent for the first year of the lease is $7.3 million, escalating by 3% annually. A portion of the base rent will be abated for the first 36 months at the annual prevailing rate for a total rent abatement of $7.2 million. The lease agreement also includes a total tenant improvement allowance of $5.1 million.

NOTE 4 —INVESTMENT

As of March 31, 2025, the Company has a 24.7% interest in Grupo Vasconia S.A.B. (“Vasconia”), an integrated manufacturer of aluminum products and a housewares company in Mexico. Shares of Vasconia’s capital stock are traded on the Bolsa Mexicana de Valores, the Mexican Stock Exchange. The Quotation Key is VASCONI. During the second quarter of 2024, Vasconia’s shareholders approved a resolution to a reorganization process in terms of the Law of Commercial Bankruptcy in Mexico and subsequently a bankruptcy suit was filed against Vasconia by one of its largest suppliers. The Company concluded that the recent events constituted a loss of significant influence and resulted in the discontinuation of the equity method of accounting. The Company accounts for its Vasconia investment at fair value in accordance with Accounting Standards Codification (“ASC”) Topic 321: Investments — Equity Securities, with any changes in fair value recorded within income (loss) on equity securities on the consolidated statements of operations. The fair value of the Vasconia investment was not material as of March 31, 2025.

Given Vasconia's limited trading activity, recent operating results of Vasconia and impact of the bankruptcy related activity, the fair value of the Vasconia investment was measured using the income approach based on Level 3 unobservable inputs.

Prior to accounting for the investment in Vasconia at fair value, equity in losses, net of taxes recognized for the three months ended March 31, 2024 was $2.1 million.

On March 13, 2025, the Company and Vasconia entered into Amendment No. 6 of the Shares Subscription Agreement, which among other items, terminated the Company’s rights to designate individuals to be nominated as members of the Vasconia board of directors. The Company did not have any designated members nominated to the Vasconia board of directors as of the date of the amendment.

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LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025

(unaudited)

NOTE 5 — INTANGIBLE ASSETS

Intangible assets consisted of the following as of March 31, 2025 and December 31, 2024 (in thousands):


	March 31, 2025				December 31, 2024
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Goodwill(1)	$	33,237	$	—	$	33,237	$	33,237	$	—	$	33,237


Finite-lived intangible assets:
Licenses	15,847		(12,680)		3,167		15,847		(12,566)		3,281
Trade names	104,528		(30,325)		74,203		104,459		(28,619)		75,840
Customer relationships	143,158		(75,966)		67,192		143,157		(73,505)		69,652
Other	5,879		(4,481)		1,398		5,868		(4,351)		1,517
Total	$	302,649	$	(123,452)	$	179,197	$	302,568	$	(119,041)	$	183,527

(1) The gross and net value at March 31, 2025 and December 31, 2024 reflect a reduction of $79.8 million impairment charges within U.S. segment and $11.9 million impairment charges within International segment.

NOTE 6 — DEBT

On August 26, 2022, the Company entered into Amendment No. 2 (the “Amendment”) to the Company’s credit agreement, dated as of March 2, 2018 (as amended, the “ABL Agreement”) among the Company, as a Borrower, certain subsidiaries of the Company, as Borrowers and/or Loan Parties, JPMorgan Chase Bank, N.A., as Administrative Agent and a Lender. The ABL Agreement provides for a senior secured asset-based revolving credit facility in the maximum aggregate principal amount of $200.0 million, which facility will mature on August 26, 2027.

On November 14, 2023, the Company entered into Amendment No. 2 to amend the Loan Agreement, dated as of March 2, 2018, among the Company, as borrower, the other loan parties from time to time party thereto, the lenders from time to time party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent (as amended, the “Term Loan” and together with the ABL Agreement, the “Debt Agreements”). The Term Loan has a principal amount of $150.0 million, and matures on August 26, 2027.

The Term Loan requires the Company to make quarterly payments of principal each equal to 1.25% of the aggregate principal amount of the Term Loan, which commenced on March 31, 2024, with the remaining balance payable on the maturity date. The Term Loan requires the Company to make an annual prepayment of principal, beginning with those for the fiscal year ending December 31, 2024, based upon a percentage of the Company’s excess cash flow, (“Excess Cash Flow”), if any. The percentage applied to the Company’s Excess Cash Flow is based on the Company’s Total Net Leverage Ratio (as defined in the Debt Agreements). When an Excess Cash Flow payment is required, each lender has the option to decline a portion or all of the prepayment amount payable to it. Per the Term Loan, when the Company makes an Excess Cash Flow prepayment, the payment is first applied to satisfy the next eight (8) scheduled future quarterly required payments of the Term Loan in order of maturity and then to the remaining scheduled installments on a pro rata basis.

The maximum borrowing amount under the ABL Agreement may be increased to up to $250.0 million if certain conditions are met. One or more tranches of additional term loans (the “Incremental Term Facilities”) may be added under the Term Loan if certain conditions are met. The Incremental Facilities may not exceed the sum of (i) $50.0 million plus (ii) an unlimited amount so long as, in the case of (ii) only, the Company’s secured net leverage ratio, as defined in and computed on a pro forma basis pursuant to the Term Loan, after giving effect to such increase, is no greater than 3.25 to 1.00, subject to certain limitations and for the period defined pursuant to the Term Loan but not to mature earlier than the maturity date of the then existing term loans.

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LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025

(unaudited)

As of March 31, 2025 and December 31, 2024, the total availability under the ABL Agreement were as follows (in thousands):


	March 31, 2025		December 31, 2024
Maximum aggregate principal allowed	$	150,571	$	176,329
Outstanding borrowings under the ABL Agreement	(39,328)		(42,693)
Standby letters of credit	(11,564)		(8,828)
Total availability under the ABL Agreement	$	99,679	$	124,808

Availability under the ABL Agreement is limited to the lesser of the $200.0 million commitment thereunder and the borrowing base and therefore depends on the valuation of certain current assets comprising the borrowing base. The borrowing capacity under the ABL Agreement will depend, in part, on eligible levels of accounts receivable and inventory that fluctuate regularly. Due to the seasonality of the Company’s business, the Company may have greater borrowing availability during the third and fourth quarters of each year. Consequently, the $200.0 million commitment thereunder may not represent actual borrowing capacity. The Company’s borrowing capacity may be further limited by the Term Loan financial covenant of 5.00 to 1.00 maximum Total Net Leverage Ratio. As of March 31, 2025, the availability under the ABL Agreement, limited by the Term Loan financial covenant, was $63.2 million.

The current and non-current portions of the Company’s Term Loan included in the condensed consolidated balance sheets were as follows (in thousands):


	March 31, 2025		December 31, 2024
Current portion of Term Loan:
Term Loan payment	$	7,500	$	7,500

Estimated unamortized debt issuance costs	(2,574)		(2,609)
Total Current portion of Term Loan	$	4,926	$	4,891

Non-current portion of Term Loan:
Term Loan, net of current portion	$	133,125	$	135,000
Estimated unamortized debt issuance costs	(3,418)		(4,051)
Total Non-current portion of Term Loan	$	129,707	$	130,949

The 2024 excess cash flow payment of $1.2 million was paid on April 4, 2025 and reduces the scheduled quarterly payment due on June 30, 2025. As of March 31, 2025, the Company estimates no excess cash flow payment will be due for 2025.

The Company’s payment obligations under its Debt Agreements are unconditionally guaranteed by its existing and future U.S. subsidiaries with certain minor exceptions. Certain payment obligations under the ABL Agreement are also direct obligations of its foreign subsidiary borrowers designated as such under the ABL Agreement and, subject to limitations on such guaranty, are guaranteed by the foreign subsidiary borrowers, as well as by the Company. The obligations of the foreign subsidiary borrowers under the ABL Agreement are secured by security interests in substantially all of the assets of, and stock in, such foreign subsidiary borrowers, subject to certain limitations. The obligations of the Company under the Debt Agreements and any hedging arrangements and cash management services and the guarantees by its domestic subsidiaries in respect of those obligations are secured by security interests in substantially all of the assets and stock (but in the case of foreign subsidiaries, limited to 65% of the capital stock in first-tier foreign subsidiaries and not including the stock of subsidiaries of such first-tier foreign subsidiaries) owned by the Company and the U.S. subsidiary guarantors, subject to certain exceptions. Such security interests consist of (1) a first-priority lien, subject to certain permitted liens, with respect to certain assets of the Company and certain of its subsidiaries (the “ABL Collateral”) pledged as collateral in favor of lenders under the ABL Agreement and a second-priority lien in the ABL Collateral in favor of the lenders under the Term Loan and (2) a first-priority lien, subject to certain permitted liens, with respect to certain assets of the Company and certain of its subsidiaries (the “Term Loan Collateral”) pledged as collateral in favor of lenders under the Term Loan and a second-priority lien in the Term Loan Collateral in favor of the lenders under the ABL Agreement.

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LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025

(unaudited)

Borrowings under the revolving credit facility bear interest, at the Company’s option, at one of the following rates: (i) an alternate base rate, defined, for any day, as the greater of the prime rate, a federal funds and overnight bank funding based rate plus 0.5% or one-month Adjusted Term Secured Overnight Financing Rate (“SOFR”) plus 1.0% as of a specified date in advance of the determination, but in each case not less than 1.0%, plus a margin of 0.25% to 0.50%, or (ii) Adjusted Term SOFR, which is the Term SOFR Rate for the selected 1, 3 or 6 month interest period plus 0.10% (or Euro Interbank Offered Rate “EURIBOR” for borrowings denominated in Euro; or Sterling Overnight Index Average “SONIA” for borrowings denominated in Pounds Sterling), but in each case not less than zero, plus a margin of 1.25% to 1.50%. The respective margins are based upon average quarterly availability, as defined in and computed pursuant to the ABL Agreement. In addition, the Company pays a commitment fee of 0.20% to 0.25% per annum based on the average daily unused portion of the aggregate commitment under the ABL Agreement. The interest rate on outstanding borrowings under the ABL Agreement at March 31, 2025 was between 3.79% and 5.86%. The Company paid a commitment fee of 0.25% on the unused portion of the ABL Agreement during the three months ended March 31, 2025.

The Term Loan bears interest, at the Company’s option, at one of the following rates: (i) alternate base rate, defined, for any day, as the greater of (x) the prime rate, (y) a federal funds and overnight bank funding based rate plus 0.5% or (z) one-month Adjusted Term SOFR, but not less than 1.0%, plus 1.0%, plus a margin of 4.5% or (ii) Adjusted Term SOFR (Term SOFR plus the Term SOFR Adjustment) for the applicable interest period, but not less than 1.0%, plus a margin of 5.5%. The interest rate on outstanding borrowings under the Term Loan at March 31, 2025 was 9.94%.

The Debt Agreements provide for customary restrictions and events of default. Restrictions include limitations on additional indebtedness, liens, acquisitions, investments and payment of dividends, among other things. Under the Term Loan, the Total Net Leverage Ratio is not permitted to be greater than 5.00 to 1.00 determined as of the end of each fiscal quarters. Further, the ABL Agreement provides that during any period (a) commencing on the last day of the most recently ended four consecutive fiscal quarters on or prior to the date availability under the ABL Agreement is less than the greater of $20.0 million and 10% of the aggregate commitment under the ABL Agreement at any time and (b) ending on the day after such availability has exceeded the greater of $20.0 million and 10% of the aggregate commitment under the ABL Agreement for 45 consecutive days, the Company is required to maintain a minimum fixed charge coverage ratio of 1.10 to 1.00 as of the last day of any period of four consecutive fiscal quarters.

The Company was in compliance with the covenants of the Debt Agreements at March 31, 2025.

The Company expects that it will continue to borrow, subject to availability, and repay funds under the ABL Agreement based on working capital and other corporate needs.

NOTE 7 — DERIVATIVES

The Company’s risk management strategy includes the use derivative financial instruments to manage its exposure to interest rate movements and to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates primarily to offset the earnings impact related to inventory purchases. The Company does not enter into derivative transactions for trading purposes. The Company classifies cash flows from its derivative transactions as cash flows from operating activities in the consolidated statements of cash flows.

The Company’s derivatives expose it to credit risks from possible non-performance by counterparties. The Company has limited its credit risk by entering into derivative transactions exclusively with investment-grade rated financial institutions and monitors the creditworthiness of these financial institutions on an ongoing basis. The Company utilizes standard counterparty master netting agreements that net certain foreign currency and interest rate swap transactions in the event of the insolvency of one of the parties to the transaction. These master netting arrangements permit the Company to net amounts due from the Company to counterparty with amounts due to the Company from the same counterparty. Although all of the Company’s recognized derivative assets and liabilities are subject to enforceable master netting arrangements, the Company has elected to present these assets and liabilities on a gross basis.

The Company does not anticipate non-performance by any of its counterparties.

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LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025

(unaudited)

Interest Rate Swap Agreements

To manage its exposures to interest rate movements, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. These interest rate swaps involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

In March 2024 and October 2024, the Company entered into interest rate swap agreements, each with an aggregate notional value of $25.0 million and expire in August 2027. These non-designated interest rate swaps serve as cash flow hedges of the Company’s exposure to the variability of the payment of interest on a portion of its Term Loan borrowings. The Company’s total outstanding notional value of interest rate swaps was $50.0 million at March 31, 2025.

Foreign Exchange Contracts

To reduce the impact of changes in foreign currency exchange rates on its results, from time to time the Company is a party to certain foreign exchange contracts, primarily to offset the earnings impact related to fluctuations in foreign currency exchange rates associated with inventory purchases. The Company designates these contracts for accounting purposes as cash flow hedges. The Company purchases foreign currency forward contracts with terms less than 18 months. The aggregate gross notional value of foreign exchange contracts at March 31, 2025 was $9.3 million.

The fair values of the Company’s derivative financial instruments included in the condensed consolidated balance sheets are presented as follows (in thousands):


Derivatives designated as hedging instruments	Balance Sheet Location	March 31, 2025		December 31, 2024




Foreign exchange contracts	Prepaid expenses and other current assets	$	20	$	256

	Accrued expenses	13		—


Derivatives not designated as hedging instruments	Balance Sheet Location	March 31, 2025		December 31, 2024
Interest rate swaps	Prepaid expenses and other current assets	$	—	$	102
	Other assets	144		379
	Other long-term liabilities	344		154

The fair values of the interest rate swaps have been obtained from the counterparties to the agreements and were based on Level 2 observable inputs using proprietary models and estimates about relevant future market conditions. The fair values of the foreign exchange contracts were based on Level 2 observable inputs using quoted market prices for similar assets in an active market.

The amounts of gains and losses, realized and unrealized, related to the Company’s derivative financial instruments designated as hedging instruments are recognized in other comprehensive income, net of taxes, as follows (in thousands):


	Three Months Ended March 31,
Derivatives designated as hedging instruments	2025		2024

Foreign exchange contracts	$	(129)	$	201

Realized gains and losses on foreign exchange contracts that are reported in other comprehensive income are reclassified into cost of sales as the underlying inventory purchased is sold.

During the three months ended March 31, 2025 and 2024, the Company reclassified $0.1 million of cash flow hedges in accumulated other comprehensive losses to earnings, related to foreign exchange contracts recognized in cost of sales. At March 31, 2025, the estimated amount of existing net gains expected to be reclassified into earnings within the next 12 months was below $0.1 million.

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Table of Contents

LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025

(unaudited)

Interest and mark to market losses related to the Company’s derivative financial instruments not designated as hedging instruments that were recognized in earnings are as follows (in thousands):


		Three Months Ended March 31,
Derivatives not designated as hedging instruments	Location of gain (loss)	2025		2024
Interest rate swaps	Mark to market loss on interest rate derivatives	$	(527)	$	(174)
	Interest expense	168		221
		$	(359)	$	47

NOTE 8 — STOCK COMPENSATION

As of March 31, 2025, there were 1,142,889 shares available for the grant of awards under the Company’s Amended and Restated 2000 Long Term Incentive Plan (“Plan”), assuming maximum performance of performance-based awards.

Option Awards

A summary of the Company’s stock option activity and related information for the three months ended March 31, 2025 is as follows:


	Options		Weighted- average exercise price		Weighted- average remaining contractual life (years)	Aggregate intrinsic value (in thousands)
Options outstanding, January 1, 2025	782,500		$	11.41
Grants	44,500		5.13



Options outstanding, March 31, 2025(1)	827,000		11.07		4.8	$	—
Options exercisable, March 31, 2025	688,750		$	11.74	3.9	$	—
Total unrecognized stock option expense remaining (in thousands)	$	426
Weighted-average years expected to be recognized over	1.7

(1) Includes a non-plan stock option award of 15,000 stock options granted in 2024.

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value that would have been received by the option holders had all option holders exercised their exercisable in-the-money stock options on March 31, 2025. The intrinsic value is calculated for each in-the-money stock option as the difference between the closing price of the Company’s common stock on March 31, 2025 and the exercise price.

Restricted Stock

A summary of the Company’s restricted stock activity and related information for the three months ended March 31, 2025 is as follows:


	Restricted Shares		Weighted- average grant date fair value
Non-vested restricted shares, January 1, 2025	593,526		$	9.46
Grants	338,705		5.15
Vested	(193,096)		10.42
Forfeitures	(188)		8.02
Non-vested restricted shares, March 31, 2025	738,947		$	7.23
Total unrecognized compensation expense remaining (in thousands)	$	4,564
Weighted-average years expected to be recognized over	1.9

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Table of Contents

LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025

(unaudited)

The total fair value of restricted stock that vested during the three months ended March 31, 2025 was $1.0 million.

Performance shares

Each performance award represents the right to receive up to 150% of the target number of shares of common stock. The number of shares of common stock earned will be determined based on the attainment of specified performance goals at the end of the performance period, as determined by the Compensation Committee of the Company’s board of directors (the “Board of Directors”). The shares are subject to the terms and conditions of the Company’s Plan.

A summary of the Company’s performance-based award activity and related information for the three months ended March 31, 2025 is as follows:


	Performance- based stock awards (1)		Weighted- average grant date fair value
Non-vested performance-based awards, January 1, 2025	529,407		$	8.96
Grants	331,561		5.13


Forfeitures(2)	(123,069)		12.19
Non-vested performance-based awards, March 31, 2025	737,899		$	6.70
Total unrecognized compensation expense remaining (in thousands)	$	3,197
Weighted-average years expected to be recognized over	2.2

(1)Represents the target number of shares to be issued for each performance-based award.

(2)Includes the forfeiture of performance-based awards granted in 2022 as the performance metric was not attained.

Cash-settled performance-based awards

Each cash-settled performance-based award represents the right to receive up to 150% of the target number of deferred stock units with payment in cash equivalent to the value of one share of the Company's common stock. The number of deferred stock units earned will be determined based on the attainment of specified performance goals at the end of the performance period, as determined by the Compensation Committee of the Board of Directors. The cash-settled performance-based awards are subject to the terms and conditions of the Company’s Plan.

A summary of the Company’s cash-settled performance-based awards activity and related information for the three months ended March 31, 2025 is as follows:


	Cash-settled performance-based awards (1)		Weighted- average fair value
Non-vested cash-settled performance-based awards, January 1, 2025	82,176		$	5.91


Forfeitures(2)	(82,176)		5.91
Non-vested cash-settled performance-based awards, March 31, 2025	—		$	—
Total unrecognized compensation expense remaining (in thousands)	$	—
Weighted-average years expected to be recognized over	0.0

(1) Represents the target number of units to be settled in cash.

(2) Includes the forfeiture of performance-based awards granted in 2022 as the performance metric was not attained.

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LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025

(unaudited)

The Company recorded stock compensation expense as follows (in thousands):


	Three Months Ended March 31,
Stock Compensation Expense Components	2025		2024
Equity based stock option expense	$	70	$	50
Restricted and performance-based stock awards expense	993		749
Stock compensation expense for equity based awards	1,063		799
Liability based stock option expense	(1)		8

Total Stock Compensation Expense	$	1,062	$	807

NOTE 9 —LOSS PER COMMON SHARE

Basic loss per common share has been computed by dividing net loss by the weighted-average number of shares of the Company’s common stock outstanding during the relevant period. Diluted loss per common share adjusts net loss and basic loss per common share for the effect of all potentially dilutive shares of the Company’s common stock. Anti-dilutive securities are not included in the computation of diluted earnings per share under the treasury stock method.

The calculations of basic and diluted loss per common share for the three months ended March 31, 2025 and 2024 are as follows:


	Three Months Ended March 31,
	2025		2024
	(in thousands, except per share amounts)
Net loss – Basic and Diluted	$	(4,201)	$	(6,260)
Weighted-average shares outstanding – Basic	21,592		21,377
Effect of dilutive securities:
Stock options and other stock awards	—		—
Weighted-average shares outstanding – Diluted	21,592		21,377
Basic loss per common share	$	(0.19)	$	(0.29)
Diluted loss per common share	$	(0.19)	$	(0.29)
Antidilutive Securities(1)	1,417		1,605

(1) Stock options and other stock awards that have been excluded from the denominator as their inclusion would have been anti-dilutive.

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Table of Contents

LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025

(unaudited)

NOTE 10— INCOME TAXES

Income tax benefit of $0.1 million and provision of $0.2 million for the three months ended March 31, 2025 and 2024, respectively, represent taxes on both U.S. and foreign earnings at a combined effective income tax benefit rate of 3.3% and provision rate of (5.3)%, respectively. The negative rate for the three months ended March 31, 2024 reflects tax expense on a pretax financial reporting loss. The effective tax rate for the three months ended March 31, 2025 differs from the federal statutory income tax rate of 21.0% primarily due to foreign losses for which no tax benefit is recognized as such amounts are fully offset with a valuation allowance. The effective tax rate for the three months ended March 31, 2024 differs from the federal statutory income tax rate of 21.0% primarily due to the expiration of non-qualified stock options and the vesting of equity-based awards, where the book expense exceeded the tax deduction upon vesting, and foreign losses for which no tax benefit is recognized as such amounts are fully offset with a valuation allowance.

The Company has identified the following jurisdictions as “major” tax jurisdictions: U.S. Federal, California, Massachusetts, New Jersey, New York and the United Kingdom.

The Company evaluates its tax positions on a quarterly basis and revises its estimates accordingly. There were no material changes to the Company’s uncertain tax positions, interest, or penalties during the three-month periods ended March 31, 2025 and March 31, 2024.

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LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025

(unaudited)

NOTE 11 – BUSINESS SEGMENTS

Segment information

The Company operates in two reportable segments: U.S. and International. The U.S. segment is the Company’s domestic business that designs, markets and distributes its products to retailers and distributors, as well as directly to consumers through third parties and its own internet websites primarily in the U.S.. The International segment is the Company’s international business that sells and distributes products to consumers primarily in the U.K., the European Union and the Asia Pacific region.

The Company’s chief operation decision maker (“CODM”) is the Company’s Chief Executive Officer. The Company has segmented its operations to reflect the manner in which the CODM reviews and evaluates the results of its operations. The CODM allocates operating and capital resources and evaluates the performance of the Company’s segments based on segment net sales, segment gross margin, and segment income from operations. Such measures give recognition to specifically identifiable operating costs. Significant segment expenses that are included in segment operating income consist of cost of sales, distribution expenses (which include freight-out expenses and warehouse expenses) and selling, general and administrative expenses.

Certain general and administrative expenses are not allocated to the Company’s segments as these represent corporate level activities and are reflected below as unallocated corporate expenses. These costs primarily include senior executive salaries and benefits, stock compensation, director fees and accounting, legal fees and consulting fees.


	Three Months Ended March 31,
	2025		2024
Segment Performance Measures:	(in thousands)
Net sales:
U.S.	$	128,510	$	130,480
International	11,575		11,762
Total net sales	$	140,085	$	142,242
Gross Margin:
U.S.	$	46,564	$	53,283
International	4,073		4,264
Total gross margin	$	50,637	$	57,547
Income from operations
U.S.	$	1,898	$	9,442
International	(2,952)		(3,089)
Unallocated corporate income (expenses)(1)	2,153		(4,523)
Income from operations	$	1,099	$	1,830

(1) Unallocated corporate income for the three months ended March 31, 2025 included a net legal settlement gain of $6.4 million. Details see NOTE 12 — CONTINGENCIES

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LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025

(unaudited)


	Three Months Ended March 31,
	2025		2024
Supplemental information for significant segment expenses:	(in thousands)
Cost of sales:
U.S.	$	81,946	$	77,197
International	7,502		7,498
Total cost of sales	$	89,448	$	84,695
Freight-out expenses:
U.S.	$	3,279	$	3,312
International	545		798
Total freight-out expenses	$	3,824	$	4,110
Warehouse expenses:
U.S.	$	11,512	$	9,691
International	2,734		2,380
Total warehouse expenses	$	14,246	$	12,071
Selling, general and administrative expenses:
U.S.	$	29,875	$	30,838
International	3,746		4,175
Unallocated corporate (income) expenses(1)	(2,153)		4,523
Total selling, general and administrative expenses	$	31,468	$	39,536

(1) Unallocated corporate income for the three months ended March 31, 2025 included a net legal settlement gain of $6.4 million. Details see NOTE 12 — CONTINGENCIES


	Three Months Ended March 31,
	2025		2024
	(in thousands)
Depreciation and amortization:
U.S.	$	5,379	$	4,656
International	319		283
Total depreciation and amortization	$	5,698	$	4,939
Capital expenditures:
U.S.	$	1,567	$	516
International	6		84
Total capital expenditures	$	1,573	$	600


	March 31, 2025		December 31, 2024
	(in thousands)
Assets
U.S.	$	500,419	$	542,420
International	83,799		88,961
Unallocated corporate	10,375		2,929
Total Assets	$	594,593	$	634,310

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LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025

(unaudited)

NOTE 12 — CONTINGENCIES

Wallace EPA Matter

Wallace Silversmiths de Puerto Rico, Ltd. (“WSPR”), a wholly-owned subsidiary of the Company, operates a manufacturing facility in San Germán, Puerto Rico that is leased from the Puerto Rico Industrial Development Company (“PRIDCO”). In March 2008, the U.S. Environmental Protection Agency (the “EPA”) announced that the San Germán Ground Water Contamination site in Puerto Rico (the “Site”) had been added to the Superfund National Priorities List due to organic compounds present in the local drinking water supply.

In May 2008, WSPR received from the EPA a Notice of Potential Liability and Request for Information pursuant to 42 U.S.C. Sections 9607(a) and 9604(e) of the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”). In July 2011, WSPR received a letter from the EPA requesting access to the property that it leases from PRIDCO to conduct an environmental investigation, and the Company granted such access. In February 2013, the EPA requested access to conduct a further environmental investigation at the property. PRIDCO agreed to such access and the Company consented. The EPA conducted a further investigation during 2013 and, in April 2015, notified the Company and PRIDCO that the results from vapor intrusion sampling may warrant the implementation of measures to mitigate potential exposure to sub-slab soil gas. The Company reviewed the information provided by the EPA and requested that PRIDCO, as the property owner, find and implement a solution acceptable to the EPA. In order to protect the health of its employees and continue its business operations, WSPR has implemented corrective action measures to respond to vapor intrusion, such as sealing the floors of the building and conducting periodic air monitoring to address potential exposure.

On August 13, 2015, the EPA released its remedial investigation and feasibility study (“RI/FS”) for the Site. On December 11, 2015, the EPA issued the Record of Decision (“ROD”) for an initial operable unit (“OU-1”), electing to implement its preferred remedy which consists of soil vapor extraction and dual-phase extraction/in-situ treatment. This selected remedy includes soil vapor extraction (“SVE”) to address soil (vadose zone) source areas at the Site, impermeable cover as necessary for the implementation of SVE, dual phase extraction in the shallow saprolite zone, and in-situ treatment as needed to address residual sources. The EPA’s total net present worth estimated cost for its selected remedy is $7.3 million. In February 2017, the EPA indicated that it planned to expand its field investigation for the RI/FS to a second operable unit (“OU-2”) to determine the nature and extent of the groundwater damage at and from the Site and to determine the nature of the remedial action needed to address the damage. The EPA requested access to the property occupied by WSPR to install monitoring wells and to undertake groundwater sampling as part of this expanded investigation. WSPR consented to the EPA’s access request, provided that the EPA received PRIDCO’s consent as the property owner. The EPA has also issued notices of potential liability to a number of other entities affiliated with the Site, which used the organic compounds of concern.

In December 2018, the Company, WSPR, and other identified potentially responsible parties affiliated with the Site entered into tolling agreements with the U.S. government to extend the statute of limitations for potential claims for the recovery of response costs for the initial operable unit under Section 107 of CERCLA. The tolling agreements have been extended multiple times and currently expire in November 2025. The tolling agreements do not constitute in any way an admission or acknowledgment of any fact, conclusion of law, or liability by the parties to the agreements.

The EPA released its proposed plan for OU-2 in July 2019, and on September 30, 2019, the EPA issued the ROD for OU-2. The EPA elected to implement its preferred remedy consisting of in-situ treatment of groundwater and a monitored natural attenuation program including monitoring of the plume fringe at the Site. The EPA’s estimated total net present worth cost for its selected remedy for OU-2 is $17.3 million, and the EPA is currently leading remediation of OU-2.

In August 2021, WSPR received a Notice of Liability for the Site from the Department of Justice on behalf of the EPA, and in September 2021, WSPR responded with a good faith offer to conduct additional testing and remedial design work for OU-1. WSPR has actively participated in negotiations among the U.S. Government (the Department of Justice and the EPA) and other potentially responsible parties with respect to the remedial work at OU-1, which negotiations culminated in the finalization of a Consent Decree for Remedial Design and Remedial Action at Operable Unit One of the San German Groundwater Contamination Site (“Decree”). On July 26, 2023, the U.S. Government filed a complaint in United States District Court for the District of Puerto Rico for the purpose of seeking judicial approval of the Decree. As required by applicable regulations, the U.S. Government simultaneously lodged the Decree for public comment. No comments were received during the public comment period. On September 6, 2023, at the conclusion of the public comment period, the U.S. Government filed a Motion

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LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025

(unaudited)

to Enter the Decree, and the court entered the Decree into order on December 14, 2023, thereby effectuating the Decree. On January 10, 2024, EPA issued a notice to proceed with the OU-1 remedial work. The Company thereafter commenced remedial work on OU-1 in accordance with the Decree.

The Company reserved $5.6 million to cover probable and estimable liabilities with respect to the above remedial design and remedial action for the initial operable unit. However, it is not possible at this time for the Company to estimate its share of its ultimate liability for the Site. In the event of one or more adverse determinations related to this matter, it is possible that the ultimate liability resulting from this matter and the impact on the Company’s results of operations could be material. As of March 31, 2025, the remaining liability is $5.4 million.

Legal Settlement Gain

In 2015, Taylor Precision Products, Inc. (“Taylor” and/or the “Plaintiff”), acquired by the Company on March 2, 2018, commenced a legal action related to a 2013 acquisition, alleging that the seller failed to sufficiently disclose certain adverse information as part of the acquisition. In February 2025, the Company received a net settlement of $6.4 million, which consisted of a $7.0 million settlement less $0.6 million in legal fees related to this case. The Company recognized the gain in selling, general and administrative expenses in the condensed consolidated statement of operations for the quarter ended March 31, 2025.

Other

The Company is, from time to time, involved in other legal proceedings. The Company believes that other current litigation is routine in nature and incidental to the conduct of the Company’s business and that none of this litigation, individually or collectively, would have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows.

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LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025

(unaudited)

NOTE 13 — OTHER

Cash dividends

Dividends declared in the three months ended March 31, 2025 were as follows:

Dividend per share

Date declared

Date of record

Payment date

$0.0425

3/11/2025

5/1/2025

5/15/2025

During the three months ended March 31, 2025, the Company paid dividends of $1.0 million. This included payments made on February 14, 2025 of $0.9 million to stockholders of record on January 31, 2025 and payments of $0.1 million for dividends payable upon the vesting of restricted shares.

In the three months ended March 31, 2025, the Company reduced retained earnings for the accrual of $1.0 million relating to the dividend payable on May 15, 2025.

Stock repurchase program

On March 14, 2022, the Company announced that its Board of Directors of the Company authorized the repurchase of up to $20.0 million of the Company’s common stock, replacing the Company’s previously-authorized $10.0 million share repurchase program. The repurchase authorization permits the Company to effect repurchases from time to time through open market purchases and privately negotiated transactions. No shares were repurchased during the three months ended March 31, 2025. As of March 31, 2025, the remaining dollar amount available for repurchases under the Board of Directors’ authorized plan was $11.1 million.

Supplemental cash flow information


	Three Months Ended March 31,
	2025		2024
	(in thousands)
Supplemental disclosure of cash flow information:
Cash paid for interest	$	4,286	$	5,105
Cash paid for taxes, net of refunds	211		282

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LIFETIME BRANDS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025

(unaudited)

Components of accumulated other comprehensive loss, net


	Three Months Ended March 31,
	2025		2024
	(in thousands)
Accumulated translation adjustment:
Balance at beginning of period	$	(18,384)	$	(32,614)
Translation adjustment during period	417		40


Balance at end of period	$	(17,967)	$	(32,574)
Accumulated deferred gains on cash flow hedges:
Balance at beginning of period	$	247	$	(134)
Change in unrealized (losses) gains	(192)		70
Amounts reclassified from accumulated other comprehensive loss:
Settlement of cash flow hedge (1)	63		131
Net change in cash flow hedges, net of taxes of $0, $0	(129)		201
Balance at end of period	$	118	$	67
Accumulated effect of retirement benefit obligations:
Balance at beginning of period	$	(178)	$	(751)
Amounts reclassified from accumulated other comprehensive loss: (2)
Amortization of actuarial loss, net of taxes of $(1), $(4)	4		13
Balance at end of period	$	(174)	$	(738)
Total accumulated other comprehensive loss at end of period	$	(18,023)	$	(33,245)

(1)Amounts reclassified are recorded in cost of sales on the unaudited condensed consolidated statement of operations.

(2)Amounts are recorded in selling, general and administrative expense on the unaudited condensed consolidated statements of operations.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This Quarterly Report on Form 10-Q of Lifetime Brands, Inc. (the “Company” and, unless the context otherwise requires, references to the “Company” shall include its consolidated subsidiaries), contains “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q are forward-looking statements. These forward-looking statements include information concerning the Company’s plans, objectives, goals, strategies, future events, future revenues, performance, capital expenditures, financing needs and other information that is not historical information. Many of these statements appear, in particular, in Management’s Discussion and Analysis of Financial Condition and Results of Operations. When used in this Quarterly Report on Form 10-Q, the words “estimates,” “expects,” “intends,” “predicts,” “plans,” “believes,” “may,” “should,” “would,” and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements, including, without limitation, those based on the Company’s examination of historical operating trends, are based upon the Company’s current expectations and various assumptions. The Company believes there is a reasonable basis for its expectations and assumptions, but there can be no assurance that the Company will realize its expectations or that the Company’s assumptions will prove correct.

There are a number of risks and uncertainties that could cause the Company’s actual results to differ materially from the forward-looking statements contained in this Quarterly Report on Form 10-Q. Important factors that could cause the Company’s actual results to differ materially from those expressed as forward-looking statements include, without limitation, those set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (the “2024 Annual Report on Form 10-K”) in Part I, Item 1A under the heading Risk Factors, and in the Company’s subsequent filings with the U.S. Securities and Exchange Commission (the “SEC”). Such risks, uncertainties and other important factors include, among others, risks related to:

•Macroeconomic conditions, including labor disputes, depreciation of the U.S. dollar, volatility in the capital markets, inflationary impacts and disruptions to the global supply chain;

•Increase in supply chain costs, including raw materials, sourcing, transportation and energy;

•The impact of tariffs and trade policies, particularly with respect to China;

•Indebtedness, compliance with credit agreements, and access to credit markets;

•Access to the capital markets and credit markets;

•The seasonality of the Company’s cash flows;

•The Company’s ability to complete acquisitions or successfully integrate acquisitions;

•Intense market competition, changing customer practices or preferences and inventory rationalization among retailers;

•Dependence on third-party manufacturers;

•Technology, cybersecurity and data privacy risks;

•Geopolitical conditions, including political instability in the U.S. and abroad, unrest and sanctions, war, conflict, including the ongoing conflicts between Russia and the Ukraine, conflicts in the Middle East, and increasing tensions between China and Taiwan;

•Product liability claims; and

•Reputational risks.

There may be other factors that may cause the Company’s actual results to differ materially from the forward-looking statements. Except as may be required by law, the Company undertakes no obligation to publicly update or revise forward-looking statements which may be made to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.

The Company is required to file its Annual Reports on Forms 10-K, Quarterly Reports on Forms 10-Q, Current Reports on Form 8-K, and other reports and documents as required from time to time with the SEC. The Company also maintains a website at http://www.lifetimebrands.com. Information contained on this website is not a part of or incorporated by reference into this Quarterly Report on Form 10-Q. The Company makes available on its website the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and any amendments to these reports as soon as reasonably practicable after these reports are filed with or furnished to the SEC. Users can access these reports free of charge on the Company’s website. The SEC also maintains a website that contains reports, proxy and information statements, and other information regarding the Company’s electronic filings with the SEC at http://www.sec.gov.

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The Company intends to use its website as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Such disclosures will be included on the Company’s website in the ‘Investor Relations’ section. Accordingly, investors should monitor such portion of the Company’s website, in addition to following the Company's press releases, SEC filings and public conference calls and webcasts.

ABOUT THE COMPANY

The Company designs, sources and sells branded kitchenware, tableware and other products used in the home. The Company’s product categories include two categories of products used to prepare, serve, and consume foods: Kitchenware (kitchen tools, cutlery, kitchen scales, thermometers, cutting boards, shears, cookware, pantryware, spice racks, and bakeware) and Tableware (dinnerware, stemware, flatware, and giftware); and one category, Home Solutions, which comprises other products used in the home (thermal beverageware, bath scales, weather and outdoor household products, food storage, neoprene travel products and home décor).

The Company markets several product lines within each of its product categories and under most of the Company’s brands, primarily targeting moderate price points through virtually every major level of trade. The Company believes it possesses certain competitive advantages based on its brands, its emphasis on innovation and new product development, and its sourcing capabilities. The Company owns or licenses a number of leading brands in its industry, including Farberware®, KitchenAid® Mikasa®, Taylor®, Pfaltzgraff®, Built NY®, S’well®, Fred® & Friends, KitchenCraft® , Rabbit®, Kamenstein®, and Dolly®. Historically, the Company’s sales growth has come from expanding product offerings within its product categories, by developing existing brands, acquiring new brands (including complementary brands in markets outside the United States), and establishing new product categories. Key factors in the Company’s growth strategy have been the selective use and management of the Company’s brands and the Company’s ability to provide a stream of new products and designs. A significant element of this strategy is the Company’s in-house design and development teams that create new products, packaging and merchandising concepts.

RECENT DEVELOPMENTS

In January 2025, the Company announced the relocation of the Company’s east coast distribution facility currently located in Robbinsville, NJ (the “Robbinsville Facility”) to a warehouse and distribution space in Hagerstown, Maryland (the “Hagerstown Facility”). In connection with the relocation, the Company will exit the Robbinsville Facility. The Company expects to incur one-time exit costs up to $7.0 million for employee severance, certain employee relocation costs, and remaining lease costs for the Robbinsville Facility, which costs are expected to be incurred in 2025 and 2026.

The Hagerstown Facility will require capital expenditures for equipment and certain leasehold improvements of approximately $10.0 million. One-time relocation costs are estimated to be up to $7.0 million, which includes recruitment, relocation of inventory, set up costs and lease expenses prior to the Hagerstown Facility being fully operational. These one-time costs are expected to be incurred in 2026. The Company expects that the Hagerstown Facility will be operational by the second quarter of 2026. Additionally, in connection with the relocation to the Hagerstown Facility, the Company will receive tax abatement and incentives over the term of the Lease from the State of Maryland and Washington County, Maryland totaling approximately

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$13.1 million. These incentives include real property tax abatement, employee state withholding tax credit, conditional grants and income tax credits.

In January 2025, the Company launched Project Concord, management's comprehensive plan to propel growth and streamline the cost structure of the International segment. The Company expects this plan to improve future results in its International segment through sales growth and the identification costs efficiencies.

BUSINESS SEGMENTS

Additional information regarding the Company’s reportable segments is included in NOTE 11 – BUSINESS SEGMENTS of the Notes to the condensed consolidated financial statements included in Item 1.

SEASONALITY

Consistent with the seasonality of the Company’s net sales and inventory levels, the Company also experiences seasonality in its inventory turnover and turnover days from one quarter to the next.

CRITICAL ACCOUNTING ESTIMATES

There have been no material changes to the Company’s critical accounting estimates discussed in the 2024 Annual Report on Form 10-K in Item 7 under the heading Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies and Estimates.

RESULTS OF OPERATIONS

The following table sets forth statements of operations data of the Company as a percentage of net sales for the periods indicated:


	Three Months Ended March 31,
	2025		2024
Net sales	100.0	%	100.0	%
Cost of sales	63.9		59.5
Gross margin	36.1		40.5
Distribution expenses	12.9		11.4
Selling, general and administrative expenses	22.4		27.8



Income from operations	0.8		1.3
Interest expense	(3.5)		(3.9)
Mark to market loss on interest rate derivatives	(0.4)		(0.2)


Loss before income taxes and equity in losses	(3.1)		(2.8)
Income tax benefit (provision)	0.1		(0.1)
Equity in losses, net of taxes	—		(1.5)

Net loss	(3.0)	%	(4.4)	%

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MANAGEMENT’S DISCUSSION AND ANALYSIS

THREE MONTHS ENDED MARCH 31, 2025 COMPARED TO THE THREE MONTHS ENDED

MARCH 31, 2024

Net Sales

Consolidated net sales for the three months ended March 31, 2025 were $140.1 million, representing a decrease of $2.1 million, or 1.5%, as compared to net sales of $142.2 million for the corresponding period in 2024. In constant currency, a non-GAAP financial measure, which excludes the impact of foreign exchange fluctuations and was determined by applying 2025 average rates to 2024 local currency amounts, consolidated net sales decreased by $2.0 million, or 1.4%, as compared to consolidated net sales in the corresponding period in 2024.

Net sales for the U.S. segment for the three months ended March 31, 2025 were $128.5 million, a decrease of $2.0 million, or 1.5%, as compared to net sales of $130.5 million for the corresponding period in 2024.

Net sales for the U.S. segment’s Kitchenware product category were $79.5 million for the three months ended March 31, 2025, a decrease of $4.0 million, or 4.8%, as compared to $83.5 million for the corresponding period in 2024. The decrease was driven by a reduction in sales for kitchen tools and cutlery and boards, partially offset by higher sales for bakeware.

Net sales for the U.S. segment’s Tableware product category were $27.6 million for the three months ended March 31, 2025, an increase of $1.8 million, or 7.0%, as compared to $25.8 million for the corresponding period in 2024. The increase was attributable to dinnerware sales in the dollar channel, partially offset by a flatware warehouse club program not repeated in Q1 2025.

Net sales for the U.S. segment’s Home Solutions product category were $21.4 million for the three months ended March 31, 2025, an increase of $0.2 million, or 0.9%, as compared to $21.2 million for the corresponding period in 2024. The increase was attributable to higher sales for Home Décor products driven in the dollar channel and a new warehouse program. The increase was partially offset by lower sales of bath measurement products.

Net sales for the International segment were $11.6 million for the three months ended March 31, 2025, a decrease of $0.1 million, or 0.9%, as compared to net sales of $11.7 million for the corresponding period in 2024. In constant currency, a non-GAAP financial measure, which excludes the impact of foreign exchange fluctuations, net sales decreased by 0.2%, as compared to consolidated net sales in the corresponding period in 2024. The decrease was driven by lower sales in the U.K. and continental Europe.

Gross margin

Gross margin for the three months ended March 31, 2025 was $50.6 million, or 36.1%, as compared to $57.5 million, or 40.5%, for the corresponding period in 2024.

Gross margin for the U.S. segment was $46.5 million, or 36.2%, for the three months ended March 31, 2025, as compared to $53.3 million, or 40.8%, for the corresponding period in 2024. The decrease in the gross margin percentage was driven by customer and product mix.

Gross margin for the International segment was $4.1 million, or 35.3%, for the three months ended March 31, 2025, as compared to $4.2 million, or 35.9%, for the corresponding period in 2024. The gross margin percentage remained consistent period over period.

Distribution expenses

Distribution expenses for the three months ended March 31, 2025 were $18.1 million, as compared to $16.2 million for the corresponding period in 2024. Distribution expenses as a percentage of net sales were 12.9% for the three months ended March 31, 2025, as compared to 11.4% for the three months ended March 31, 2024.

Distribution expenses as a percentage of net sales for the U.S. segment were 11.5% and 10.0% for the three months ended March 31, 2025 and 2024, respectively. As a percentage of sales shipped from the Company’s U.S. warehouses, distribution expenses were 11.9% and 10.5% for the three months ended March 31, 2025 and 2024, respectively. The increase in expenses as a percentage of sales was attributable to an increase in employee expenses as a result of less labor management efficiencies due to higher inventory levels, higher software expenses due to the launch of a new warehouse management system at the

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Company's west coast distribution center in September 2024. These increases were partially offset by lower freight-out expenses.

Distribution expenses as a percentage of net sales for the International segment were 28.3% for the three months ended March 31, 2025, compared to 27.2% for the corresponding period in 2024. As a percentage of sales shipped from the Company’s international warehouses distribution expenses were 25.0% and 23.6% for the three months ended March 31, 2025 and 2024, respectively. The increase in expenses as a percentage of net sales was primarily attributed to an increase in warehouse rent expense, partially offset by lower freight out-expenses.

Selling, general and administrative expenses

Selling, general and administrative expenses for the three months ended March 31, 2025 were $31.5 million, a decrease of $8.0 million, or 20.3%, as compared to $39.5 million for the corresponding period in 2024.

Selling, general and administrative expenses for the U.S. segment were $30.0 million for the three months ended March 31, 2025, as compared to $30.8 million for the corresponding period in 2024. As a percentage of net sales, selling, general and administrative expenses were 23.3% and 23.6% for the three months ended March 31, 2025 and 2024, respectively. The decrease in expenses was attributable to lower employee expenses, including incentive compensation, and legal expenses. This was partially offset by an increase in the provision for doubtful accounts in the current period and an increase in amortization expense related to an indefinite-lived trade name, which was reclassified to a finite-lived trade name in the fourth quarter 2024.

Selling, general and administrative expenses for the International segment were $3.7 million for the three months ended March 31, 2025, as compared to $4.2 million for the corresponding period in 2024. As a percentage of net sales, selling, general and administrative expenses were 31.9% and 35.9% for the three months ended March 31, 2025 and 2024, respectively. The decrease in expenses was attributable to lower commission expenses, and foreign currency exchange gains.

Unallocated corporate income for the three months ended March 31, 2025 was $2.2 million, as compared to expenses of $4.5 million for the corresponding period in 2024. The current period income was driven by the recognition of a net legal settlement gain of $6.4 million. The remaining decrease compared to the prior period was due to lower incentive compensation and legal expenses, partially offset by an increase in stock compensation expense.

Interest expense

Interest expense was $4.9 million and $5.6 million for the three months ended March 31, 2025 and 2024, respectively. The decrease in expense was a result of lower average outstanding borrowings in the current period, and lower interest rates on outstanding borrowings.

Mark to market loss on interest rate derivatives

Mark to market loss on interest rate derivatives was $0.5 million for the three months ended March 31, 2025, as compared to a mark to market loss on interest rate derivatives of $0.2 million for the three months ended March 31, 2024. The loss recognized for the three months ended March 31, 2025 and 2024, respectively, was attributable to the change in the fair value due to the change in the projected interest rate environment. The mark to market amount represents the change in fair value on the Company’s interest rate derivatives that have not been designated as hedging instruments. These derivatives were entered into for purposes of locking-in a fixed interest rate on a portion of the Company’s variable interest rate debt. As of March 31, 2025, the intent of the Company is to hold these derivative contracts until their maturity.

Income taxes

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Equity in losses, net of taxes

Equity in losses of Vasconia, net of taxes, was $2.1 million for the three months ended March 31, 2024.

LIQUIDITY AND CAPITAL RESOURCES

The Company’s principal sources of cash to fund liquidity needs are: (i) cash provided by operating activities and (ii) borrowings available under its revolving credit facility under the ABL Agreement, as defined below. The Company’s primary uses of funds consist of working capital requirements, capital expenditures, acquisitions and investments, payments of dividends, and payments of principal and interest on its debt.

At March 31, 2025, the Company had cash and cash equivalents of $10.4 million, compared to $2.9 million at December 31, 2024. Working capital was $216.4 million at March 31, 2025, compared to $221.8 million at December 31, 2024. Liquidity as of March 31, 2025 was $89.6 million, consisting of $10.4 million of cash and cash equivalents, $63.2 million of availability under the ABL Agreement, limited by the Term Loan financial covenant, and $16.0 million of available funding under the Receivables Purchase Agreement.

Inventory, a large component of the Company’s working capital, is expected to fluctuate from period to period, with inventory levels higher primarily in the June through October time period. The Company also expects inventory turnover to fluctuate from period to period based on product and customer mix. Certain product categories have lower inventory turnover rates as a result of minimum order quantities from the Company’s vendors or customer replenishment needs. Certain other product categories experience higher inventory turns due to lower minimum order quantities or trending sale demands. For the three months ended March 31, 2025, inventory turnover was 1.8 times, or 208 days, as compared to 1.8 times, or 203 days, for the three months ended March 31, 2024. Inventory turns have remained relatively consistent.

The Company believes that availability under the revolving credit facility under its ABL Agreement, cash on hand and cash flows from operations are sufficient to fund the Company’s operations for the next twelve months. However, if circumstances were to adversely change, the Company may seek alternative sources of liquidity including debt and/or equity financing. However, there can be no assurance that any such alternative sources would be available or sufficient.

The Company closely monitors the creditworthiness of its customers. Based upon its evaluation of changes in customers’ creditworthiness, the Company may modify credit limits and/or terms of sale. However, notwithstanding the Company’s efforts to monitor its customers’ financial condition, the Company could be materially adversely affected by future changes in these conditions.

Indebtedness

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As of March 31, 2025 and December 31, 2024, the total availability under the ABL Agreement were as follows (in thousands):


	March 31, 2025		December 31, 2024
Maximum aggregate principal allowed	$	150,571	$	176,329
Outstanding borrowings under the ABL Agreement	(39,328)		(42,693)
Standby letters of credit	(11,564)		(8,828)
Total availability under the ABL Agreement	$	99,679	$	124,808

The current and non-current portions of the Company’s Term Loan included in the condensed consolidated balance sheets were as follows (in thousands):


	March 31, 2025		December 31, 2024
Current portion of Term Loan:
Term Loan payment	$	7,500	$	7,500

Estimated unamortized debt issuance costs	(2,574)		(2,609)
Total Current portion of Term Loan	$	4,926	$	4,891

Non-current portion of Term Loan:
Term Loan, net of current portion	$	133,125	$	135,000
Estimated unamortized debt issuance costs	(3,418)		(4,051)
Total Non-current portion of Term Loan	$	129,707	$	130,949

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Collateral”) pledged as collateral in favor of lenders under the Term Loan and a second-priority lien in the Term Loan Collateral in favor of the lenders under the ABL Agreement.

The Company was in compliance with the covenants of the Debt Agreements at March 31, 2025.

The Company expects that it will continue to borrow, subject to availability, and repay funds under the ABL Agreement based on working capital and other corporate needs.

Covenant Calculations

Adjusted EBITDA (a non-GAAP financial measure), which is defined in the Company’s Debt Agreements, is used in the calculation of the Fixed Charge Coverage Ratio, Secured Net Leverage Ratio, Total Leverage Ratio and Total Net Leverage Ratio, which are required to be provided to the Company’s lenders pursuant to its Debt Agreements.

The Company’s adjusted EBITDA for the trailing twelve months ended March 31, 2025 was $51.0 million.

Capital expenditures for the three months ended March 31, 2025 were $1.6 million.

Non-GAAP financial measure

Adjusted EBITDA is a non-GAAP financial measure within the meaning of Regulation G and Item 10(e) of Regulation S-K, each promulgated by the SEC. This measure is provided because management of the Company uses this financial measure in evaluating the Company’s on-going financial results and trends, and management believes that exclusion of certain items allows for more accurate period-to-period comparison of the Company’s operating performance by investors and analysts. Management also uses this non-GAAP information as an indicator of business performance. Adjusted EBITDA, as discussed above, is also one of the measures used to calculate financial covenants required to be provided to the Company’s lenders pursuant to its Debt Agreements.

Investors should consider this non-GAAP financial measure in addition to, and not as a substitute for, the Company’s financial performance measures prepared in accordance with U.S. GAAP. Further, the Company’s non-GAAP information may be

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different from the non-GAAP information provided by other companies including other companies within the home retail industry.

The following is a reconciliation of the net (loss) income, as reported, to Adjusted EBITDA, for each of the last four quarters and the 12 months ended March 31, 2025:


	Quarter Ended								Twelve Months Ended March 31, 2025
	June 30, 2024		September 30, 2024		December 31, 2024		March 31, 2025
	(in thousands)
Net (loss) income as reported	$	(18,167)	$	344	$	8,918	$	(4,201)	$	(13,106)
Loss on equity securities	14,152		—		—		—		14,152

Income tax (benefit) provision	(57)		1,507		1,671		(142)		2,979
Interest expense	5,157		5,834		5,603		4,915		21,509
Depreciation and amortization	4,894		6,408		6,073		5,698		23,073
Mark to market loss (gain) on interest rate derivatives	82		928		(718)		527		819

Stock compensation expense	1,037		1,042		1,034		1,062		4,175



Legal settlement gain, net(1)	—		—		—		(4,578)		(4,578)
Acquisition related expenses	641		210		143		—		994

Warehouse redesign expenses(2)	35		662		249		—		946




Adjusted EBITDA(3)	$	7,774	$	16,935	$	22,973	$	3,281	$	50,963

(1)For the twelve months ended March 31, 2025, legal settlement gain, net included a net settlement of $6.4 million discussed in NOTE 12 — CONTINGENCIES, and adjusted for legal fees incurred from March 2, 2018 through March 31, 2025 of $1.8 million.

(2) For the twelve months ended March 31, 2025, the warehouse redesign expenses were related to the U.S. segment.

(3) Adjusted EBITDA is a non-GAAP financial measure that is defined in the Company’s debt agreements. Adjusted EBITDA is defined as net (loss) income, adjusted to exclude loss on equity securities, income tax (benefit) provision, interest expense, depreciation and amortization, mark to market loss (gain) on interest rate derivatives, stock compensation expense, legal settlement gain, net and other items detailed in the table above that are consistent with exclusions permitted by our debt agreements.

Accounts Receivable Purchase Agreement

To improve its liquidity during seasonally high working capital periods, the Company has an uncommitted Receivables Purchase Agreement with HSBC Bank USA, National Association (“HSBC”) as Purchaser (the “Receivables Purchase Agreement”). Under the Receivables Purchase Agreement, the Company may offer to sell certain eligible accounts receivable (the “Receivables”) to HSBC, which may accept such offer, and purchase the offered Receivables. Under the Receivables Purchase Agreement, following each purchase of Receivables, the outstanding aggregate purchased Receivables shall not exceed $30.0 million. HSBC will assume the credit risk of the Receivables purchased, and the Company will continue to be responsible for all non-credit risk matters. The Company will service the Receivables, and as such servicer, collect and otherwise enforce the Receivables on behalf of HSBC. The term of the agreement is for 364 days and shall automatically be extended for annual successive terms unless terminated. Either party may terminate the agreement at any time upon sixty days’ prior written notice to the other party.

The Company did not sell receivables to HSBC during the three months ended March 31, 2025 and March 31, 2024. At March 31, 2025, $16.0 million of accounts receivables were available for sale to HSBC, net of applicable charges.

Derivatives

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one of the parties to the transaction. These master netting arrangements permit the Company to net amounts due from the Company to counterparty with amounts due to the Company from the same counterparty. Although all of the Company’s recognized derivative assets and liabilities are subject to enforceable master netting arrangements, the Company has elected to present these assets and liabilities on a gross basis.

The Company does not anticipate non-performance by any of its counterparties.

Interest Rate Swaps

Foreign Exchange Contracts

Operating activities

Net cash provided by operating activities was $16.7 million for the three months ended March 31, 2025, as compared to net cash provided by operating activities of $10.5 million for the three months ended March 31, 2024. The increase from 2025 compared to 2024 was attributable to a net legal settlement gain received in the current period, timing of collections related to the Company's accounts receivables and timing of payments for accounts payable and accrued expenses, partially offset by increased use of cash related to inventory purchases.

Investing activities

Net cash used in investing activities was $1.6 million and $0.6 million for the three months ended March 31, 2025 and 2024, respectively. The increase in investment activities was driven by purchases of equipment for the Hagerstown Facility.

Financing activities

Net cash used in financing activities was $7.8 million for the three months ended March 31, 2025, as compared to net cash used in financing activities of $21.4 million for the three months ended March 31, 2024. The change was attributable to lower net repayments of revolving credit facility in the 2025 period, partially offset by the principal repayment of term loan due to timing.

Stock repurchase program

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

There were no material changes in market risk for changes in foreign currency exchange rates and interest rates from the information provided in Item 7A – Quantitative and Qualitative Disclosures About Market Risk in the 2024 Annual Report on Form 10-K.

Item 4. Controls and Procedures

(a)Evaluation of Disclosure Controls and Procedures

The Chief Executive Officer and the Chief Financial Officer of the Company (its principal executive officer and principal financial officer, respectively) have concluded, based on their evaluation as of March 31, 2025, that the Company’s disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in the reports filed by it under the Securities and Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and include controls and procedures designed to ensure that information required to be disclosed by the Company in such reports is accumulated and communicated to the Company’s management, including the Chief Executive Officer and Chief Financial Officer of the Company, as appropriate to allow timely decisions regarding required disclosure.

(b)Changes in Internal Controls

There were no changes in the Company’s internal controls over financial reporting that occurred during the Company’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal controls over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

For a description of the Company’s legal proceedings, please see NOTE 12 — CONTINGENCIES, to the Company's condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.

Item 1A. Risk Factors

In addition to the other information set forth in this Quarterly Report on Form 10-Q, readers should carefully consider the factors discussed in Part I, Item 1A—Risk Factors in the 2024 Annual Report on Form 10-K, and in the Company’s other filings with the SEC, which could materially affect the Company’s business, financial condition, cash flows or future results. Except as noted below, there have been no material changes from the risk factors previously disclosed in Part I, Item 1A—Risk Factors in the 2024 Annual Report on Form 10-K.

We face risks related to the uncertainty regarding the future of international trade agreements and the United States’ position on international trade. Significant political, trade, regulatory developments, and other circumstances beyond our control, are expected to have a material impact on our business, financial condition, and results of operations if we are unable to successfully implement various mitigating actions.

The Company sources almost all of its products from suppliers located outside the United States, primarily in China. Additionally, the Company has a presence in international markets through subsidiaries and affiliate companies that are based outside of the United States, including in China. As a result of the tariffs announced on April 2, 2025 by the Trump Administration, we are anticipating increased supply chain challenges, cost volatility, and consumer and economic uncertainty due to rapid changes in global trade policies. We continue to analyze the impact of these tariffs on our business and actions we can take to minimize their impact. We expect these new tariffs to have a material impact on our business and results of operations in fiscal year 2025 and in the longer term if we are unable to successfully implement various mitigating actions noted below.

Uncertainty regarding policies of the Trump Administration with respect to the future of trade partnerships and relations, including as a result of the tariffs announced on April 2, 2025 and additional tariffs that may be announced or implemented in the future, are expected to impact our market share, revenue and gross margins and reduce our competitiveness in countries that will be affected by those policies. In addition, these developments may also negatively impact the carrying value of our reporting units.

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As a result of the tariffs announced on April 2, 2025 or additional tariffs or other restrictions, quotas, embargoes, or safeguards that are placed on goods imported into the United States, or any related counter-measures that are taken by other countries, we expect to take actions which may include, but not be limited to, pricing of our products, product configurations, and inventory management. The actions that we take may not fully offset the impact of tariffs and, as a result, our market share, revenue, gross margins, and results of operations may be materially harmed.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities


Period	Total number of shares purchased(1)	Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs(2)	Maximum approximate dollar value of shares that may yet be purchased under the plans or programs subsequent to end of period (2)


March 1 - March 31, 2025	80,247	$	5.18	—	$	11,140,752

(1)The repurchased shares were acquired other than as part of a publicly announced plan or program. The Company repurchased these securities in connection with its Amended and Restated 2000 Long Term Incentive Plan, which allows participants to use shares to satisfy the exercise price of options exercised, certain tax liabilities arising from the exercise of options, and certain tax liabilities arising from the vesting of restricted stock. The foregoing number does not include unvested shares forfeited back to the Company pursuant to the terms of its stock compensation plans.

(2)On March 14, 2022, the Company announced that its Board of Directors’ authorized the repurchase of up to $20.0 million of the Company’s common stock, replacing the Company’s previously-authorized $10 million share repurchase program. The repurchase authorization permits the Company to effect the repurchases from time to time through open market purchases and privately negotiated transactions. No repurchases under the program occurred during the three months ended March 31, 2025.

Item 5. Other Information

Rule 10b5-1 Trading Plans

None of the Company’s directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the Company’s fiscal quarter ended March 31, 2025.

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Item 6. Exhibits

See the Exhibit Index below, which is incorporated by reference herein.

Exhibit Index


Exhibit No.



31.1*						Certification by Robert B. Kay, Chief Executive Officer and Director, pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities and Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*						Certification by Laurence Winoker, Executive Vice President, Treasurer and Chief Financial Officer, pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities and Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1**						Certification by Robert B. Kay, Chief Executive Officer and Director, and Laurence Winoker, Executive Vice President, Treasurer and Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

10.1+						Lease Agreement, dated January 23, 2025, by and between the Company and CRP/TCC Rhoton Owner LLC (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed January 29, 2025)

10.2						Amendment Agreement No.6, dated as of March 13, 2025 to the Shares Subscription Agreement by and among the Company, Grupo Vasconia, S.A.B. and Mr. José Ramón Elizondo Anaya and Mr. Miguel Ángel Huerta Pando (incorporated by reference to Exhibit 10.55 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2024)

101.INS*						Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)

101.SCH*						Inline XBRL Taxonomy Extension Schema Document

101.DEF*						Inline XBRL Taxonomy Extension Definition Linkbase Document

101.CAL*						Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.LAB*						Inline XBRL Taxonomy Extension Labels Linkbase Document


101.PRE*						Inline XBRL Taxonomy Extension Presentation Linkbase Document
104						The cover page from this Quarterly Report on Form 10-Q, formatted in Inline XBRL and contained in Exhibit 101

* Filed herewith

** Furnished herewith

+ Portions of this exhibit are redacted in accordance with Regulation S-K Item 601(b)(10)(iv).

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


			Lifetime Brands, Inc.

			/s/ Robert B. Kay			May 8, 2025
			Robert B. Kay
			Chief Executive Officer and Director
			(Principal Executive Officer)

			/s/ Laurence Winoker			May 8, 2025
			Laurence Winoker
			Executive Vice President, Treasurer and Chief Financial Officer
			(Principal Financial and Accounting Officer)

- 41 -

Exhibit 31.1

CERTIFICATION

I, Robert B. Kay, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Lifetime Brands, Inc. (“the registrant”);

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)4) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b.designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected or is reasonably likely to materially affect the registrant’s internal control over financial reporting; and

1.The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.




/s/ Robert B. Kay
Robert B. Kay Chief Executive Officer and Director
Date: May 8, 2025

Exhibit 31.2

CERTIFICATION

I, Laurence Winoker, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Lifetime Brands, Inc. (“the registrant”);

2.Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3.Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4.The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)4) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

5.The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

b.any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


/s/ Laurence Winoker
Laurence Winoker Executive Vice President, Treasurer and Chief Financial Officer

Date: May 8, 2025

Exhibit 32.1

Certification by Robert B. Kay, Chief Executive Officer and Director, and Laurence Winoker, Executive Vice President, Treasurer and Chief Financial Officer, Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

I, Robert B. Kay, Chief Executive Officer and Director, and I, Laurence Winoker, Executive Vice President, Treasurer and Chief Financial Officer, of Lifetime Brands, Inc., a Delaware corporation (the “Company”), each hereby certify that:

(1)The Company’s periodic report on Form 10-Q for the period ended March 31, 2025 (the “Form 10-Q”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2)The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.


/s/ Robert B. Kay						/s/ Laurence Winoker
Robert B. Kay Chief Executive Officer and Director						Laurence Winoker Executive Vice President, Treasurer and Chief Financial Officer

Date: May 8, 2025						Date: May 8, 2025

A signed original of this certification required by 18 U.S.C. Section 1350 has been provided to Lifetime Brands, Inc. and will be retained by Lifetime Brands, Inc. and furnished to the SEC or its staff upon request.

Cover - shares	3 Months Ended
Cover - shares	Mar. 31, 2025	Apr. 30, 2025
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2025
Document Transition Report	false
Entity File Number	0-19254
Entity Registrant Name	LIFETIME BRANDS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	11-2682486
Entity Address, Address Line One	1000 Stewart Avenue
Entity Address, City or Town	Garden City
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	11530
City Area Code	(516)
Local Phone Number	683-6000
Title of 12(b) Security	Common Stock, $.01 par value
Trading Symbol	LCUT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		22,414,005
Amendment Flag	false
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0000874396

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands

Mar. 31, 2025

Dec. 31, 2024

CURRENT ASSETS

Cash and cash equivalents

$ 10,375

$ 2,929

Accounts receivable, less allowances of $13,861 at March 31, 2025 and $14,093 at December 31, 2024

105,710

156,743

Inventory

210,053

202,408

Prepaid expenses and other current assets

14,467

11,488

TOTAL CURRENT ASSETS

340,605

373,568

PROPERTY AND EQUIPMENT, net

15,481

15,049

OPERATING LEASE RIGHT-OF-USE ASSETS

56,914

59,571

INTANGIBLE ASSETS, net

179,197

183,527

OTHER ASSETS

2,396

2,595

TOTAL ASSETS

594,593

634,310

CURRENT LIABILITIES

Current maturity of term loan

4,926

4,891

Accounts payable

45,524

60,029

Accrued expenses

57,839

70,848

Income taxes payable

491

830

Current portion of operating lease liabilities

15,403

15,145

TOTAL CURRENT LIABILITIES

124,183

151,743

OTHER LONG-TERM LIABILITIES

16,023

15,955

INCOME TAXES PAYABLE, LONG-TERM

706

OPERATING LEASE LIABILITIES

53,305

56,740

DEFERRED INCOME TAXES

5,665

5,601

REVOLVING CREDIT FACILITY

39,328

42,693

TERM LOAN

129,707

130,949

STOCKHOLDERS’ EQUITY

Preferred stock, $1.00 par value, shares authorized: 100 shares of Series A and 2,000,000 shares of Series B; none issued and outstanding

Common stock, $0.01 par value, shares authorized: 50,000,000 at March 31, 2025 and December 31, 2024; shares issued and outstanding: 22,414,005 at March 31, 2025 and 22,155,735 at December 31, 2024

224

222

Paid-in capital

281,211

280,566

Accumulated deficit

(37,736)

(32,550)

Accumulated other comprehensive loss

(18,023)

(18,315)

TOTAL STOCKHOLDERS’ EQUITY

225,676

^[1]

229,923

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$ 594,593

$ 634,310

[1]	Cash dividends declared per share of common stock were $0.0425 and $0.0425 in the three months ended March 31, 2025 and 2024, respectively.

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Accounts receivable, allowances	$ 13,861	$ 14,093
Common stock, par value (usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	22,414,005	22,155,735
Common stock, shares outstanding (in shares)	22,414,005	22,155,735
Preferred stock Series A
Preferred stock, par value (usd per share)	$ 1.00	$ 1.00
Preferred stock, shares authorized (in shares)	100	100
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Preferred stock Series B
Preferred stock, par value (usd per share)	$ 1.00	$ 1.00
Preferred stock, shares authorized (in shares)	2,000,000	2,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Net sales:	$ 140,085	$ 142,242
Cost of sales	89,448	84,695
Gross margin	50,637	57,547
Distribution expenses	18,070	16,181
Selling, general and administrative expenses	31,468	39,536
Income from operations	1,099	1,830
Interest expense	(4,915)	(5,614)
Mark to market loss on interest rate derivatives	(527)	(174)
Loss before income taxes and equity in losses	(4,343)	(3,958)
Income tax benefit (provision)	142	(210)
Gain (Loss) on Investments	0
Equity in losses, net of taxes		(2,092)
NET LOSS	$ (4,201)	$ (6,260)
Basic income (loss) per common share (usd per share)	$ (0.19)	$ (0.29)
Diluted income (loss) per common share (usd per share)	$ (0.19)	$ (0.29)

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Statement of Comprehensive Income [Abstract]
Net loss	$ (4,201)	$ (6,260)
Other comprehensive income, net of taxes:
Net change in translation adjustment	417	40
Net change in cash flow hedges	(129)	201
Effect of retirement benefit obligations	4	13
Other comprehensive income, net of taxes	292	254
Comprehensive loss	$ (3,909)	$ (6,006)

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
shares in Thousands, $ in Thousands

Total

Common stock

Employee [Member]

Paid-in capital

Employee [Member]

Accumulated deficit

Accumulated other comprehensive loss

Beginning Balance (in shares) at Dec. 31, 2023

21,813

Balance at beginning of year at Dec. 31, 2023

$ 230,879

$ 218

$ 277,728

$ (13,568)

$ (33,499)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Net loss

(6,260)

Other Comprehensive Income (Loss), Net of Tax

254

Performance shares issued to employees (in shares)

152

Performance shares issued to employees

$ 2

$ (2)

Net issuance of restricted shares to employees and directors (in shares)

213

Net issuance of restricted shares granted to employees

$ 2

(2)

Stock compensation expense

799

Shares Repurchased For Tax Withholding For Share Based Compensation

105

Shares effectively repurchased for required employee withholding taxes

(1,028)

$ (1)

(1,027)

Dividends accrued

943

^[1]

943

^[1]

Ending Balance (in shares) at Mar. 31, 2024

22,073

Balance at end of year at Mar. 31, 2024

223,701

^[1]

$ 221

277,496

(20,771)

^[1]

(33,245)

Beginning Balance (in shares) at Dec. 31, 2024

22,156

Balance at beginning of year at Dec. 31, 2024

229,923

$ 222

280,566

(32,550)

(18,315)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Net loss

(4,201)

Other Comprehensive Income (Loss), Net of Tax

292

Net issuance of restricted shares to employees and directors (in shares)

338

Net issuance of restricted shares granted to employees

$ 3

$ (3)

Stock compensation expense

1,063

Shares Repurchased For Tax Withholding For Share Based Compensation

Shares effectively repurchased for required employee withholding taxes

(416)

$ (1)

(415)

Dividends accrued

985

^[1]

Ending Balance (in shares) at Mar. 31, 2025

22,414

Balance at end of year at Mar. 31, 2025

$ 225,676

^[1]

$ 224

$ 281,211

$ (37,736)

^[1]

$ (18,023)

[1]	Cash dividends declared per share of common stock were $0.0425 and $0.0425 in the three months ended March 31, 2025 and 2024, respectively.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Statement of Stockholders' Equity [Abstract]
Dividend per share of common stock (usd per share)	$ 0.0425	$ 0.0425

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
OPERATING ACTIVITIES
Net loss	$ (4,201)	$ (6,260)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	5,698	4,939
Amortization of financing costs	704	739
Mark to market loss on interest rate derivatives	527	174
Operating leases, net	(556)	(455)
Provision for doubtful accounts	704	195
Stock compensation expense	1,062	807
Equity in losses, net of taxes	0	2,092
Changes in operating assets and liabilities
Accounts receivable	50,832	41,119
Inventory	(6,324)	(1,566)
Prepaid expenses, other current assets and other assets	(3,345)	3,159
Accounts payable, accrued expenses and other liabilities	(28,038)	(34,359)
Income taxes payable	(352)	(71)
NET CASH PROVIDED BY OPERATING ACTIVITIES	16,711	10,513
INVESTING ACTIVITIES
Purchases of property and equipment	(1,573)	(600)
NET CASH USED IN INVESTING ACTIVITIES	(1,573)	(600)
FINANCING ACTIVITIES
Payments for finance lease obligations	(11)	(7)
Payments of tax withholding for stock based compensation	(416)	(1,028)
Cash dividends paid	(996)	(1,026)
NET CASH USED IN FINANCING ACTIVITIES	(7,767)	(21,399)
Effect of foreign exchange on cash	75	(64)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	7,446	(11,550)
Cash and cash equivalents at beginning of period	2,929	16,189
CASH AND CASH EQUIVALENTS AT END OF PERIOD	10,375	4,639
Revolving Credit Facility
FINANCING ACTIVITIES
Proceeds from revolving credit facility	88,894	51,484
Repayments of Long-Term Lines of Credit	(93,363)	(70,822)
Term Loan
FINANCING ACTIVITIES
Repayments of Long-Term Lines of Credit	$ (1,875)	$ 0

BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2025

Accounting Policies [Abstract]

BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES

Organization and business

Basis of presentation

Operating results for the three months ended March 31, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025.

Revenue recognition

Cost of sales

Distribution expenses

Distribution expenses consist primarily of warehousing expenses and freight-out expenses.

Accounts receivable

Receivable purchase agreement

At March 31, 2025, $16.0 million of accounts receivables were available for sale to HSBC, net of applicable charges.

Inventory

The components of inventory were as follows (in thousands):


	March 31, 2025		December 31, 2024
Finished goods	$	199,526	$	192,480
Work in process	141		62
Raw materials	10,386		9,866
Total	$	210,053	$	202,408

Fair value of financial instruments

Derivatives

Goodwill, intangible assets and long-lived assets

See NOTE 5 — INTANGIBLE ASSETS to the unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information.

Leases

New accounting pronouncements

REVENUE

3 Months Ended

Mar. 31, 2025

Revenue from Contract with Customer [Abstract]

REVENUE

The following tables present the Company’s net sales disaggregated by segment, product category and geographic region for the three months ended March 31, 2025 and 2024 (in thousands):


	Three Months Ended
	March 31,
	2025		2024
U.S. segment
Kitchenware	$	79,521	$	83,530
Tableware	27,577		25,759
Home Solutions	21,412		21,191
Total U.S. segment	128,510		130,480



International segment	11,575		11,762
Total net sales	$	140,085	$	142,242

United States	$	124,205	$	126,134
United Kingdom	6,954		7,466
Rest of World	8,926		8,642
Total net sales	$	140,085	$	142,242

LEASES

3 Months Ended

Mar. 31, 2025

Leases [Abstract]

LEASES

The Company has operating leases for corporate offices, distribution facilities, a manufacturing plant, and certain vehicles.

The components of lease expense for the three months ended March 31, 2025 and 2024 were as follows (in thousands):


	Three Months Ended March 31,
	2025		2024
Operating lease expenses(1):
Fixed lease expense	$	4,258	$	4,263
Variable lease expense	1,753		1,368
Total	$	6,011	$	5,631

(1) Expenses are recorded within distribution expenses and selling, general and administrative expenses on the unaudited condensed consolidated statement of operations.

Supplemental cash flow information for lease related liabilities and assets for the three months ended March 31, 2025 and 2024 were as follows (in thousands):


	Three Months Ended March 31,
	2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	4,814	$	4,718


	Three Months Ended March 31,
	2025		2024
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	—	$	—

The aggregate future lease payments for operating leases as of March 31, 2025 were as follows (in thousands):


	Operating
2025 (excluding the three months ended March 31, 2025)	$	14,458
2026	18,916
2027	14,678
2028	12,888
2029	6,735
2030	4,914
Thereafter	8,953
Total lease payments	81,542
Less: Interest	(12,834)
Present value of lease payments	$	68,708

Average lease terms and discount rates were as follows:


	March 31, 2025
Operating leases:
Weighted-average remaining lease term (years)	5.1
Weighted-average discount rate	6.6	%

On January 23, 2025, the Company entered into a lease agreement for a new distribution center in Hagerstown, Maryland

INVESTMENTS	3 Months Ended
INVESTMENTS	Mar. 31, 2025
Equity Method Investments and Joint Ventures [Abstract]
Investment	INVESTMENT As of March 31, 2025, the Company has a 24.7% interest in Grupo Vasconia S.A.B. (“Vasconia”), an integrated manufacturer of aluminum products and a housewares company in Mexico. Shares of Vasconia’s capital stock are traded on the Bolsa Mexicana de Valores, the Mexican Stock Exchange. The Quotation Key is VASCONI. During the second quarter of 2024, Vasconia’s shareholders approved a resolution to a reorganization process in terms of the Law of Commercial Bankruptcy in Mexico and subsequently a bankruptcy suit was filed against Vasconia by one of its largest suppliers. The Company concluded that the recent events constituted a loss of significant influence and resulted in the discontinuation of the equity method of accounting. The Company accounts for its Vasconia investment at fair value in accordance with Accounting Standards Codification (“ASC”) Topic 321: Investments — Equity Securities, with any changes in fair value recorded within income (loss) on equity securities on the consolidated statements of operations. The fair value of the Vasconia investment was not material as of March 31, 2025. Given Vasconia's limited trading activity, recent operating results of Vasconia and impact of the bankruptcy related activity, the fair value of the Vasconia investment was measured using the income approach based on Level 3 unobservable inputs. Prior to accounting for the investment in Vasconia at fair value, equity in losses, net of taxes recognized for the three months ended March 31, 2024 was $2.1 million. On March 13, 2025, the Company and Vasconia entered into Amendment No. 6 of the Shares Subscription Agreement, which among other items, terminated the Company’s rights to designate individuals to be nominated as members of the Vasconia board of directors. The Company did not have any designated members nominated to the Vasconia board of directors as of the date of the amendment.

INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

Intangible assets consisted of the following as of March 31, 2025 and December 31, 2024 (in thousands):


	March 31, 2025				December 31, 2024
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Goodwill(1)	$	33,237	$	—	$	33,237	$	33,237	$	—	$	33,237


Finite-lived intangible assets:
Licenses	15,847		(12,680)		3,167		15,847		(12,566)		3,281
Trade names	104,528		(30,325)		74,203		104,459		(28,619)		75,840
Customer relationships	143,158		(75,966)		67,192		143,157		(73,505)		69,652
Other	5,879		(4,481)		1,398		5,868		(4,351)		1,517
Total	$	302,649	$	(123,452)	$	179,197	$	302,568	$	(119,041)	$	183,527

DEBT

3 Months Ended

Mar. 31, 2025

Debt Disclosure [Abstract]

DEBT

As of March 31, 2025 and December 31, 2024, the total availability under the ABL Agreement were as follows (in thousands):


	March 31, 2025		December 31, 2024
Maximum aggregate principal allowed	$	150,571	$	176,329
Outstanding borrowings under the ABL Agreement	(39,328)		(42,693)
Standby letters of credit	(11,564)		(8,828)
Total availability under the ABL Agreement	$	99,679	$	124,808

The current and non-current portions of the Company’s Term Loan included in the condensed consolidated balance sheets were as follows (in thousands):


	March 31, 2025		December 31, 2024
Current portion of Term Loan:
Term Loan payment	$	7,500	$	7,500

Estimated unamortized debt issuance costs	(2,574)		(2,609)
Total Current portion of Term Loan	$	4,926	$	4,891

Non-current portion of Term Loan:
Term Loan, net of current portion	$	133,125	$	135,000
Estimated unamortized debt issuance costs	(3,418)		(4,051)
Total Non-current portion of Term Loan	$	129,707	$	130,949

The Company was in compliance with the covenants of the Debt Agreements at March 31, 2025.

The Company expects that it will continue to borrow, subject to availability, and repay funds under the ABL Agreement based on working capital and other corporate needs

DERIVATIVES

3 Months Ended

Mar. 31, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVES

The Company does not anticipate non-performance by any of its counterparties.

Interest Rate Swap Agreements

Foreign Exchange Contracts

The fair values of the Company’s derivative financial instruments included in the condensed consolidated balance sheets are presented as follows (in thousands):


Derivatives designated as hedging instruments	Balance Sheet Location	March 31, 2025		December 31, 2024




Foreign exchange contracts	Prepaid expenses and other current assets	$	20	$	256

	Accrued expenses	13		—


Derivatives not designated as hedging instruments	Balance Sheet Location	March 31, 2025		December 31, 2024
Interest rate swaps	Prepaid expenses and other current assets	$	—	$	102
	Other assets	144		379
	Other long-term liabilities	344		154


	Three Months Ended March 31,
Derivatives designated as hedging instruments	2025		2024

Foreign exchange contracts	$	(129)	$	201

Realized gains and losses on foreign exchange contracts that are reported in other comprehensive income are reclassified into cost of sales as the underlying inventory purchased is sold.

Interest and mark to market losses related to the Company’s derivative financial instruments not designated as hedging instruments that were recognized in earnings are as follows (in thousands):


		Three Months Ended March 31,
Derivatives not designated as hedging instruments	Location of gain (loss)	2025		2024
Interest rate swaps	Mark to market loss on interest rate derivatives	$	(527)	$	(174)
	Interest expense	168		221
		$	(359)	$	47

STOCK COMPENSATION

3 Months Ended

Mar. 31, 2025

Share-Based Payment Arrangement [Abstract]

STOCK COMPENSATION

Option Awards

A summary of the Company’s stock option activity and related information for the three months ended March 31, 2025 is as follows:


	Options		Weighted- average exercise price		Weighted- average remaining contractual life (years)	Aggregate intrinsic value (in thousands)
Options outstanding, January 1, 2025	782,500		$	11.41
Grants	44,500		5.13



Options outstanding, March 31, 2025(1)	827,000		11.07		4.8	$	—
Options exercisable, March 31, 2025	688,750		$	11.74	3.9	$	—
Total unrecognized stock option expense remaining (in thousands)	$	426
Weighted-average years expected to be recognized over	1.7

(1) Includes a non-plan stock option award of 15,000 stock options granted in 2024.

Restricted Stock

A summary of the Company’s restricted stock activity and related information for the three months ended March 31, 2025 is as follows:


	Restricted Shares		Weighted- average grant date fair value
Non-vested restricted shares, January 1, 2025	593,526		$	9.46
Grants	338,705		5.15
Vested	(193,096)		10.42
Forfeitures	(188)		8.02
Non-vested restricted shares, March 31, 2025	738,947		$	7.23
Total unrecognized compensation expense remaining (in thousands)	$	4,564
Weighted-average years expected to be recognized over	1.9

The total fair value of restricted stock that vested during the three months ended March 31, 2025 was $1.0 million.

Performance shares

A summary of the Company’s performance-based award activity and related information for the three months ended March 31, 2025 is as follows:


	Performance- based stock awards (1)		Weighted- average grant date fair value
Non-vested performance-based awards, January 1, 2025	529,407		$	8.96
Grants	331,561		5.13


Forfeitures(2)	(123,069)		12.19
Non-vested performance-based awards, March 31, 2025	737,899		$	6.70
Total unrecognized compensation expense remaining (in thousands)	$	3,197
Weighted-average years expected to be recognized over	2.2

(1)Represents the target number of shares to be issued for each performance-based award.

(2)Includes the forfeiture of performance-based awards granted in 2022 as the performance metric was not attained.

Cash-settled performance-based awards

A summary of the Company’s cash-settled performance-based awards activity and related information for the three months ended March 31, 2025 is as follows:


	Cash-settled performance-based awards (1)		Weighted- average fair value
Non-vested cash-settled performance-based awards, January 1, 2025	82,176		$	5.91


Forfeitures(2)	(82,176)		5.91
Non-vested cash-settled performance-based awards, March 31, 2025	—		$	—
Total unrecognized compensation expense remaining (in thousands)	$	—
Weighted-average years expected to be recognized over	0.0

(1) Represents the target number of units to be settled in cash.

(2) Includes the forfeiture of performance-based awards granted in 2022 as the performance metric was not attained.

The Company recorded stock compensation expense as follows (in thousands):


	Three Months Ended March 31,
Stock Compensation Expense Components	2025		2024
Equity based stock option expense	$	70	$	50
Restricted and performance-based stock awards expense	993		749
Stock compensation expense for equity based awards	1,063		799
Liability based stock option expense	(1)		8

Total Stock Compensation Expense	$	1,062	$	807

INCOME (LOSS) PER COMMON SHARE

3 Months Ended

Mar. 31, 2025

Earnings Per Share [Abstract]

INCOME (LOSS) PER COMMON SHARE

LOSS PER COMMON SHARE

The calculations of basic and diluted loss per common share for the three months ended March 31, 2025 and 2024 are as follows:


	Three Months Ended March 31,
	2025		2024
	(in thousands, except per share amounts)
Net loss – Basic and Diluted	$	(4,201)	$	(6,260)
Weighted-average shares outstanding – Basic	21,592		21,377
Effect of dilutive securities:
Stock options and other stock awards	—		—
Weighted-average shares outstanding – Diluted	21,592		21,377
Basic loss per common share	$	(0.19)	$	(0.29)
Diluted loss per common share	$	(0.19)	$	(0.29)
Antidilutive Securities(1)	1,417		1,605

(1) Stock options and other stock awards that have been excluded from the denominator as their inclusion would have been anti-dilutive.

INCOME TAXES	3 Months Ended
INCOME TAXES	Mar. 31, 2025
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Income tax benefit of $0.1 million and provision of $0.2 million for the three months ended March 31, 2025 and 2024, respectively, represent taxes on both U.S. and foreign earnings at a combined effective income tax benefit rate of 3.3% and provision rate of (5.3)%, respectively. The negative rate for the three months ended March 31, 2024 reflects tax expense on a pretax financial reporting loss. The effective tax rate for the three months ended March 31, 2025 differs from the federal statutory income tax rate of 21.0% primarily due to foreign losses for which no tax benefit is recognized as such amounts are fully offset with a valuation allowance. The effective tax rate for the three months ended March 31, 2024 differs from the federal statutory income tax rate of 21.0% primarily due to the expiration of non-qualified stock options and the vesting of equity-based awards, where the book expense exceeded the tax deduction upon vesting, and foreign losses for which no tax benefit is recognized as such amounts are fully offset with a valuation allowance. The Company has identified the following jurisdictions as “major” tax jurisdictions: U.S. Federal, California, Massachusetts, New Jersey, New York and the United Kingdom. The Company evaluates its tax positions on a quarterly basis and revises its estimates accordingly. There were no material changes to the Company’s uncertain tax positions, interest, or penalties during the three-month periods ended March 31, 2025 and March 31, 2024.

BUSINESS SEGMENTS

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

BUSINESS SEGMENTS

Segment information


	Three Months Ended March 31,
	2025		2024
Segment Performance Measures:	(in thousands)
Net sales:
U.S.	$	128,510	$	130,480
International	11,575		11,762
Total net sales	$	140,085	$	142,242
Gross Margin:
U.S.	$	46,564	$	53,283
International	4,073		4,264
Total gross margin	$	50,637	$	57,547
Income from operations
U.S.	$	1,898	$	9,442
International	(2,952)		(3,089)
Unallocated corporate income (expenses)(1)	2,153		(4,523)
Income from operations	$	1,099	$	1,830

(1) Unallocated corporate income for the three months ended March 31, 2025 included a net legal settlement gain of $6.4 million. Details see NOTE 12 — CONTINGENCIES


	Three Months Ended March 31,
	2025		2024
Supplemental information for significant segment expenses:	(in thousands)
Cost of sales:
U.S.	$	81,946	$	77,197
International	7,502		7,498
Total cost of sales	$	89,448	$	84,695
Freight-out expenses:
U.S.	$	3,279	$	3,312
International	545		798
Total freight-out expenses	$	3,824	$	4,110
Warehouse expenses:
U.S.	$	11,512	$	9,691
International	2,734		2,380
Total warehouse expenses	$	14,246	$	12,071
Selling, general and administrative expenses:
U.S.	$	29,875	$	30,838
International	3,746		4,175
Unallocated corporate (income) expenses(1)	(2,153)		4,523
Total selling, general and administrative expenses	$	31,468	$	39,536

(1) Unallocated corporate income for the three months ended March 31, 2025 included a net legal settlement gain of $6.4 million. Details see NOTE 12 — CONTINGENCIES


	Three Months Ended March 31,
	2025		2024
	(in thousands)
Depreciation and amortization:
U.S.	$	5,379	$	4,656
International	319		283
Total depreciation and amortization	$	5,698	$	4,939
Capital expenditures:
U.S.	$	1,567	$	516
International	6		84
Total capital expenditures	$	1,573	$	600


	March 31, 2025		December 31, 2024
	(in thousands)
Assets
U.S.	$	500,419	$	542,420
International	83,799		88,961
Unallocated corporate	10,375		2,929
Total Assets	$	594,593	$	634,310

CONTINGENCIES	3 Months Ended
CONTINGENCIES	Mar. 31, 2025
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES	CONTINGENCIES Wallace EPA Matter Wallace Silversmiths de Puerto Rico, Ltd. (“WSPR”), a wholly-owned subsidiary of the Company, operates a manufacturing facility in San Germán, Puerto Rico that is leased from the Puerto Rico Industrial Development Company (“PRIDCO”). In March 2008, the U.S. Environmental Protection Agency (the “EPA”) announced that the San Germán Ground Water Contamination site in Puerto Rico (the “Site”) had been added to the Superfund National Priorities List due to organic compounds present in the local drinking water supply. In May 2008, WSPR received from the EPA a Notice of Potential Liability and Request for Information pursuant to 42 U.S.C. Sections 9607(a) and 9604(e) of the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”). In July 2011, WSPR received a letter from the EPA requesting access to the property that it leases from PRIDCO to conduct an environmental investigation, and the Company granted such access. In February 2013, the EPA requested access to conduct a further environmental investigation at the property. PRIDCO agreed to such access and the Company consented. The EPA conducted a further investigation during 2013 and, in April 2015, notified the Company and PRIDCO that the results from vapor intrusion sampling may warrant the implementation of measures to mitigate potential exposure to sub-slab soil gas. The Company reviewed the information provided by the EPA and requested that PRIDCO, as the property owner, find and implement a solution acceptable to the EPA. In order to protect the health of its employees and continue its business operations, WSPR has implemented corrective action measures to respond to vapor intrusion, such as sealing the floors of the building and conducting periodic air monitoring to address potential exposure. On August 13, 2015, the EPA released its remedial investigation and feasibility study (“RI/FS”) for the Site. On December 11, 2015, the EPA issued the Record of Decision (“ROD”) for an initial operable unit (“OU-1”), electing to implement its preferred remedy which consists of soil vapor extraction and dual-phase extraction/in-situ treatment. This selected remedy includes soil vapor extraction (“SVE”) to address soil (vadose zone) source areas at the Site, impermeable cover as necessary for the implementation of SVE, dual phase extraction in the shallow saprolite zone, and in-situ treatment as needed to address residual sources. The EPA’s total net present worth estimated cost for its selected remedy is $7.3 million. In February 2017, the EPA indicated that it planned to expand its field investigation for the RI/FS to a second operable unit (“OU-2”) to determine the nature and extent of the groundwater damage at and from the Site and to determine the nature of the remedial action needed to address the damage. The EPA requested access to the property occupied by WSPR to install monitoring wells and to undertake groundwater sampling as part of this expanded investigation. WSPR consented to the EPA’s access request, provided that the EPA received PRIDCO’s consent as the property owner. The EPA has also issued notices of potential liability to a number of other entities affiliated with the Site, which used the organic compounds of concern. In December 2018, the Company, WSPR, and other identified potentially responsible parties affiliated with the Site entered into tolling agreements with the U.S. government to extend the statute of limitations for potential claims for the recovery of response costs for the initial operable unit under Section 107 of CERCLA. The tolling agreements have been extended multiple times and currently expire in November 2025. The tolling agreements do not constitute in any way an admission or acknowledgment of any fact, conclusion of law, or liability by the parties to the agreements. The EPA released its proposed plan for OU-2 in July 2019, and on September 30, 2019, the EPA issued the ROD for OU-2. The EPA elected to implement its preferred remedy consisting of in-situ treatment of groundwater and a monitored natural attenuation program including monitoring of the plume fringe at the Site. The EPA’s estimated total net present worth cost for its selected remedy for OU-2 is $17.3 million, and the EPA is currently leading remediation of OU-2. In August 2021, WSPR received a Notice of Liability for the Site from the Department of Justice on behalf of the EPA, and in September 2021, WSPR responded with a good faith offer to conduct additional testing and remedial design work for OU-1. WSPR has actively participated in negotiations among the U.S. Government (the Department of Justice and the EPA) and other potentially responsible parties with respect to the remedial work at OU-1, which negotiations culminated in the finalization of a Consent Decree for Remedial Design and Remedial Action at Operable Unit One of the San German Groundwater Contamination Site (“Decree”). On July 26, 2023, the U.S. Government filed a complaint in United States District Court for the District of Puerto Rico for the purpose of seeking judicial approval of the Decree. As required by applicable regulations, the U.S. Government simultaneously lodged the Decree for public comment. No comments were received during the public comment period. On September 6, 2023, at the conclusion of the public comment period, the U.S. Government filed a Motion to Enter the Decree, and the court entered the Decree into order on December 14, 2023, thereby effectuating the Decree. On January 10, 2024, EPA issued a notice to proceed with the OU-1 remedial work. The Company thereafter commenced remedial work on OU-1 in accordance with the Decree. The Company reserved $5.6 million to cover probable and estimable liabilities with respect to the above remedial design and remedial action for the initial operable unit. However, it is not possible at this time for the Company to estimate its share of its ultimate liability for the Site. In the event of one or more adverse determinations related to this matter, it is possible that the ultimate liability resulting from this matter and the impact on the Company’s results of operations could be material. As of March 31, 2025, the remaining liability is $5.4 million. Legal Settlement Gain In 2015, Taylor Precision Products, Inc. (“Taylor” and/or the “Plaintiff”), acquired by the Company on March 2, 2018, commenced a legal action related to a 2013 acquisition, alleging that the seller failed to sufficiently disclose certain adverse information as part of the acquisition. In February 2025, the Company received a net settlement of $6.4 million, which consisted of a $7.0 million settlement less $0.6 million in legal fees related to this case. The Company recognized the gain in selling, general and administrative expenses in the condensed consolidated statement of operations for the quarter ended March 31, 2025. Other The Company is, from time to time, involved in other legal proceedings. The Company believes that other current litigation is routine in nature and incidental to the conduct of the Company’s business and that none of this litigation, individually or collectively, would have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows.

OTHER

3 Months Ended

Mar. 31, 2025

Organization, Consolidation and Presentation of Financial Statements [Abstract]

OTHER

Cash dividends

Dividends declared in the three months ended March 31, 2025 were as follows:

Dividend per share

Date declared

Date of record

Payment date

$0.0425

3/11/2025

5/1/2025

5/15/2025

In the three months ended March 31, 2025, the Company reduced retained earnings for the accrual of $1.0 million relating to the dividend payable on May 15, 2025.

Stock repurchase program

Supplemental cash flow information


	Three Months Ended March 31,
	2025		2024
	(in thousands)
Supplemental disclosure of cash flow information:
Cash paid for interest	$	4,286	$	5,105
Cash paid for taxes, net of refunds	211		282

Components of accumulated other comprehensive loss, net


	Three Months Ended March 31,
	2025		2024
	(in thousands)
Accumulated translation adjustment:
Balance at beginning of period	$	(18,384)	$	(32,614)
Translation adjustment during period	417		40


Balance at end of period	$	(17,967)	$	(32,574)
Accumulated deferred gains on cash flow hedges:
Balance at beginning of period	$	247	$	(134)
Change in unrealized (losses) gains	(192)		70
Amounts reclassified from accumulated other comprehensive loss:
Settlement of cash flow hedge (1)	63		131
Net change in cash flow hedges, net of taxes of $0, $0	(129)		201
Balance at end of period	$	118	$	67
Accumulated effect of retirement benefit obligations:
Balance at beginning of period	$	(178)	$	(751)
Amounts reclassified from accumulated other comprehensive loss: (2)
Amortization of actuarial loss, net of taxes of $(1), $(4)	4		13
Balance at end of period	$	(174)	$	(738)
Total accumulated other comprehensive loss at end of period	$	(18,023)	$	(33,245)

(1)Amounts reclassified are recorded in cost of sales on the unaudited condensed consolidated statement of operations.

(2)Amounts are recorded in selling, general and administrative expense on the unaudited condensed consolidated statements of operations.

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Mar. 31, 2025	Mar. 31, 2024
Pay vs Performance Disclosure
Net loss	$ (4,201)	$ (6,260)

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2025
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false

BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2025
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Quarterly Reports on Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments, which consist of normal recurring accruals and non-recurring adjustments, considered necessary for a fair presentation have been included. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024. Operating results for the three months ended March 31, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025. The Company’s business and working capital needs are seasonal, with a majority of sales occurring in the third and fourth quarters. In 2024 and 2023, net sales for the third and fourth quarters accounted for 58% and 57% of total annual net sales, respectively. In anticipation of the pre-holiday shipping season, inventory levels increase primarily in the June through October time period. The increase in inventory levels at March 31, 2025 compared to December 31, 2024 was due to preemptive measures taken in anticipation of, and designed to mitigate, the impact of the tariffs that went into effective in April 2025. The Company’s current estimates contemplate current and expected future conditions, as applicable; however it is reasonably possible that actual conditions could differ from expectations, which could materially affect the Company’s results of operations and financial position.
Revenue recognition and Cost of sales	Revenue recognition The Company sells products wholesale, to retailers and distributors, and retail, directly to the consumer. Wholesale sales and retail sales are primarily recognized at the point in time the customer obtains control of the products, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products. The Company offers various sales incentives and promotional programs to its customers in the normal course of business. These incentives and promotions typically include arrangements such as cooperative advertising, buydowns, volume rebates and discounts. These arrangements and an estimate for products expected to be returned are reflected as reductions of revenue at the time of sale. See NOTE 2 —REVENUE to the unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information. Cost of sales Cost of sales consist primarily of costs associated with the production and procurement of product, inbound freight costs, purchasing costs, handling costs, duties and tariffs, royalties, and other product procurement related charges.
Distribution expenses	Distribution expenses Distribution expenses consist primarily of warehousing expenses and freight-out expenses.
Accounts receivable	Accounts receivable The Company periodically reviews the collectability of its accounts receivable and establishes allowances for estimated credit losses that could result from the inability of its customers to make required payments, taking into consideration customer credit history and financial condition, industry and market segment information, credit reports, and expectations of current and future economic conditions. A considerable amount of judgment is required to assess the ultimate realization of these receivables including assessing the initial and on-going creditworthiness of the Company’s customers. The Company also maintains an allowance for anticipated customer deductions. Contractual deductions for incentives and promotions granted to customers such as cooperative advertising, are recorded as a reduction to accounts receivable at the time of sale. These deductions are primarily fixed amounts; however, in certain cases, these deductions are not fixed and, therefore, the allowance is estimated based on currently available information and historical trends of deductions.
Receivable purchase agreement	Receivable purchase agreement The Company has an uncommitted Receivables Purchase Agreement with HSBC Bank USA, National Association (“HSBC”) as Purchaser (the “Receivables Purchase Agreement”). The sale of accounts receivable, under the Receivables Purchase Agreement with HSBC, is excluded from the Company’s unaudited condensed consolidated balance sheets at the time of sale and the related sale expense is included in selling, general and administrative expenses in the Company’s unaudited condensed consolidated statements of operations. The Company did not sell receivables to HSBC during the three months ended March 31, 2025 and March 31, 2024. At March 31, 2025, $16.0 million of accounts receivables were available for sale to HSBC, net of applicable charges.
Inventory	Inventory Inventory consists principally of finished goods sourced from third-party suppliers. Inventory also includes finished goods, work in process and raw materials related to the Company’s manufacture of sterling silver products. Inventory is priced using the lower of cost (first-in, first-out basis) or net realizable value. The Company estimates the selling price of its inventory on a product-by-product basis based on the current selling environment. If the estimated selling price is lower than the inventory’s cost, the Company reduces the value of the inventory to its net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable cost of completion, disposal and transportation.
Fair value of financial instruments	Fair value of financial instruments The Company determined that the carrying amounts of cash and cash equivalents, accounts receivable and accounts payable are reasonable estimates of their fair values because of their short-term nature. The Company determined that the carrying amounts of borrowings outstanding under its ABL Agreement and Term Loan (each as defined in NOTE 6 — DEBT to the unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q) approximate fair value since such borrowings bear interest at variable market rates.
Derivatives	Derivatives The Company accounts for derivative instruments in accordance with Accounting Standard Codification (“ASC”) Topic 815, Derivatives and Hedging (“ASC 815”). ASC 815 requires that all derivative instruments be recognized on the balance sheet at fair value as either an asset or liability. Changes in the fair value of derivatives that qualify as hedges and have been designated as part of a hedging relationship for accounting purposes are included in accumulated other comprehensive loss and are subsequently recognized in the Company’s unaudited condensed consolidated statements of operations in the same period that the hedged items are recognized in earnings. Changes in fair value of derivatives that do not qualify as hedging instruments for accounting purposes are recorded in the Company’s unaudited condensed consolidated statements of operations.
Goodwill, intangible assets and long-lived assets	Goodwill, intangible assets and long-lived assets Goodwill is not amortized but, instead, subject to an annual impairment assessment on October 1 or more frequently if events or conditions were to indicate the carrying value of a reporting unit may not be recoverable. As it relates to the goodwill assessment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the quantitative goodwill impairment testing described in the Financial Accounting Standards Board's (“FASB”) ASC Topic 350, Intangibles – Goodwill and Other. If, after assessing qualitative factors, the Company determines that it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, then no further testing is performed for that reporting unit. However, if based on the Company’s qualitative assessment it concludes that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, or if the Company elects to bypass the qualitative assessment, the Company will proceed with performing the quantitative impairment test. Impairment testing is based upon the best information available, including estimates of fair value which incorporate assumptions marketplace participants would use in making their estimates of fair value. The Company performed its annual impairment assessment of its U.S. reporting unit as of October 1, 2024 by comparing the fair value of the reporting unit with its carrying value. The Company performed the analysis using a discounted cash flow and market multiple method. As of October 1, 2024, the fair value of the U.S. reporting unit exceeded the carrying value of goodwill by 5%. The significant assumptions used under the income approach, or discounted cash flow method, are projected net sales, projected earnings before interest, tax, depreciation and amortization (“EBITDA”), and the cost of capital. Projected net sales and projected EBITDA were determined to be significant assumptions because they are the primary drivers of the projected cash flows in the discounted cash flow fair value model. Cost of capital was also determined to be a significant assumption as it is the discount rate used to calculate the current fair value of those projected cash flows. The calculation of cost of capital includes a number of subjective inputs, including a company-specific risk premium to capture the perceived risks associated with the reporting unit’s projected cash flows used in the discounted cash flow method. Determining fair value using a market approach considers multiples of financial metrics based on both acquisitions and trading multiples of a selected peer group of companies. From the comparable companies, a representative market multiple is determined which is applied to financial metrics to estimate the fair value of a reporting unit. Although the Company believes the assumptions and estimates made are reasonable and appropriate, different assumptions and estimates could materially impact its reported financial results. In addition, sustained declines in the Company’s stock price and related market capitalization could impact key assumptions in the overall estimated fair values of its reporting units and could result in non-cash impairment charges that could be material to the Company’s consolidated balance sheet or results of operations. Should the carrying value of a reporting unit be in excess of the estimated fair value of that reporting unit, an impairment charge will be recorded to reduce the reporting unit to fair value. Long-lived assets, including intangible assets deemed to have finite lives, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Impairment indicators include, among other conditions, cash flow deficits, historic or anticipated declines in revenue or operating profit or material adverse changes in the business climate that indicate that the carrying amount of an asset may be impaired. When impairment indicators are present, the recoverability of the asset is measured by comparing the carrying value of the asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the asset is not recoverable, the impairment to be recognized is measured by the amount by which the carrying amount of each long-lived asset exceeds the fair value of the asset. The Company purchases almost all of its product from third-party manufacturers outside the U.S., primarily in China. This concentration in suppliers exposes the Company to risks associated with doing business globally, including risks relating to the tariffs recently implemented and that may be implemented in the future. As of April 9, 2025, the U.S. has imposed an aggregate 145% tariff on imports from China. Other recent tariff policy updates that went into effect in April 2025 include a 10% universal tariff for all countries and reciprocal tariffs for specific countries, which have been paused for 90 days. As the Company sources almost all of its products from suppliers located outside the United States, primarily in China, any new or increased tariffs, quotas, embargoes, or other trade barriers could impact our supply chain and cost structure. Additionally, retaliatory measures by affected countries, could further disrupt operations or reduce our competitiveness in international markets. The Company continues to monitor these changing tariffs and trade restrictions. The Company is developing a plan to mitigate the impact of the increase price of goods imported by the Company into the U.S. The Company may seek to increase prices to its customers, negotiate product costs with its suppliers and further diversify its imports to countries that are expected to be subject to lower tariffs. To the extent the tariffs remain in place and the Company cannot mitigate the impact of the increase on the price of goods imported by the Company into the U.S., it may result in lower gross margin that the Company realizes from the sale of its products which could materially adversely affect the Company’s results of operations and financial condition and result in an impairment of our long-lived assets, including goodwill within the U.S. segment reporting unit. See NOTE 5 — INTANGIBLE ASSETS to the unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information.
Leases	Leases The Company determines if an arrangement is a lease at the inception of a contract. Operating lease right-of-use (“ROU”) assets are included in operating lease right-of-use assets on the condensed consolidated balance sheets. The current and long-term components of operating lease liabilities are included in the current portion of operating lease liability and operating lease liabilities, respectively, on the condensed consolidated balance sheets. Finance leases are included in property and equipment, net, accrued expenses and other long-term liabilities. The Company’s finance leases are not material to the Company’s condensed consolidated balance sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. The operating lease ROU asset may also include any lease payments made, adjusted for any prepaid or accrued rent payments, lease incentives, and initial direct costs incurred. Certain leases may include options to extend or terminate the lease. Periods to extend the lease are included in the lease term when the Company is reasonably certain that the extension option would be exercised, and the associated lease payments for such periods are reflected in the ROU asset and lease liability. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. For certain equipment leases, the Company applies a portfolio approach to effectively account for any ROU assets and lease liabilities. Leases with an initial term of twelve months or less are not recorded on the balance sheet. The Company has elected the practical expedient to account for each separate lease component of a contract and its associated non-lease components as a single lease component, thus causing all fixed payments to be capitalized.
New accounting pronouncements	New accounting pronouncements Updates not listed below were assessed and either determined to not be applicable or are expected to have a minimal effect on the Company’s financial position, results of operations, and disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures: This guidance is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in ASU 2023-09 address investor requests for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. Early adoption is permitted. The new guidance is effective for public business entities for annual periods beginning after December 15, 2024 on a prospective basis. Retrospective application is permitted. Management is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The guidance requires additional disclosure in the notes to the financial statements for specified information about certain costs and expenses. The new guidance is effective for public business entities for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027. Early adoption is permitted. The amendments in this ASU may be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of this ASU or (2) retrospectively to all prior periods presented in the financial statements. Management is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures.

BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2025

Accounting Policies [Abstract]

Components of Inventory

The components of inventory were as follows (in thousands):


	March 31, 2025		December 31, 2024
Finished goods	$	199,526	$	192,480
Work in process	141		62
Raw materials	10,386		9,866
Total	$	210,053	$	202,408

REVENUE (Tables)

3 Months Ended

Mar. 31, 2025

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following tables present the Company’s net sales disaggregated by segment, product category and geographic region for the three months ended March 31, 2025 and 2024 (in thousands):


	Three Months Ended
	March 31,
	2025		2024
U.S. segment
Kitchenware	$	79,521	$	83,530
Tableware	27,577		25,759
Home Solutions	21,412		21,191
Total U.S. segment	128,510		130,480



International segment	11,575		11,762
Total net sales	$	140,085	$	142,242

United States	$	124,205	$	126,134
United Kingdom	6,954		7,466
Rest of World	8,926		8,642
Total net sales	$	140,085	$	142,242

LEASES (Tables)

3 Months Ended

Mar. 31, 2025

Leases [Abstract]

Lease, Cost

The components of lease expense for the three months ended March 31, 2025 and 2024 were as follows (in thousands):


	Three Months Ended March 31,
	2025		2024
Operating lease expenses(1):
Fixed lease expense	$	4,258	$	4,263
Variable lease expense	1,753		1,368
Total	$	6,011	$	5,631

(1) Expenses are recorded within distribution expenses and selling, general and administrative expenses on the unaudited condensed consolidated statement of operations.

Schedule Of Supplemental Cash Flow Information Related To Leases

Supplemental cash flow information for lease related liabilities and assets for the three months ended March 31, 2025 and 2024 were as follows (in thousands):


	Three Months Ended March 31,
	2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	4,814	$	4,718


	Three Months Ended March 31,
	2025		2024
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	—	$	—

Lessee, Operating Lease, Liability, Maturity

The aggregate future lease payments for operating leases as of March 31, 2025 were as follows (in thousands):


	Operating
2025 (excluding the three months ended March 31, 2025)	$	14,458
2026	18,916
2027	14,678
2028	12,888
2029	6,735
2030	4,914
Thereafter	8,953
Total lease payments	81,542
Less: Interest	(12,834)
Present value of lease payments	$	68,708

Schedule Of Average Lease Terms And Discount Rates

Average lease terms and discount rates were as follows:


	March 31, 2025
Operating leases:
Weighted-average remaining lease term (years)	5.1
Weighted-average discount rate	6.6	%

INTANGIBLE ASSETS (Tables)

3 Months Ended

Mar. 31, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets and Goodwill [Table Text Block]

Intangible assets consisted of the following as of March 31, 2025 and December 31, 2024 (in thousands):


	March 31, 2025				December 31, 2024
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Goodwill(1)	$	33,237	$	—	$	33,237	$	33,237	$	—	$	33,237


Finite-lived intangible assets:
Licenses	15,847		(12,680)		3,167		15,847		(12,566)		3,281
Trade names	104,528		(30,325)		74,203		104,459		(28,619)		75,840
Customer relationships	143,158		(75,966)		67,192		143,157		(73,505)		69,652
Other	5,879		(4,481)		1,398		5,868		(4,351)		1,517
Total	$	302,649	$	(123,452)	$	179,197	$	302,568	$	(119,041)	$	183,527

DEBT (Tables)

3 Months Ended

Mar. 31, 2025

Debt Disclosure [Abstract]

Schedule of Line of Credit Facilities

As of March 31, 2025 and December 31, 2024, the total availability under the ABL Agreement were as follows (in thousands):


	March 31, 2025		December 31, 2024
Maximum aggregate principal allowed	$	150,571	$	176,329
Outstanding borrowings under the ABL Agreement	(39,328)		(42,693)
Standby letters of credit	(11,564)		(8,828)
Total availability under the ABL Agreement	$	99,679	$	124,808

Schedule of Long-term Debt Instruments

The current and non-current portions of the Company’s Term Loan included in the condensed consolidated balance sheets were as follows (in thousands):


	March 31, 2025		December 31, 2024
Current portion of Term Loan:
Term Loan payment	$	7,500	$	7,500

Estimated unamortized debt issuance costs	(2,574)		(2,609)
Total Current portion of Term Loan	$	4,926	$	4,891

Non-current portion of Term Loan:
Term Loan, net of current portion	$	133,125	$	135,000
Estimated unamortized debt issuance costs	(3,418)		(4,051)
Total Non-current portion of Term Loan	$	129,707	$	130,949

DERIVATIVES (Tables)

3 Months Ended

Mar. 31, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Values of Derivative Financial Instruments Included in Unaudited Condensed Consolidated Balance Sheets

The fair values of the Company’s derivative financial instruments included in the condensed consolidated balance sheets are presented as follows (in thousands):


Derivatives designated as hedging instruments	Balance Sheet Location	March 31, 2025		December 31, 2024




Foreign exchange contracts	Prepaid expenses and other current assets	$	20	$	256

	Accrued expenses	13		—


Derivatives not designated as hedging instruments	Balance Sheet Location	March 31, 2025		December 31, 2024
Interest rate swaps	Prepaid expenses and other current assets	$	—	$	102
	Other assets	144		379
	Other long-term liabilities	344		154

Gains and Losses Related to Derivative Financial Instruments Designated as Hedging Instruments


	Three Months Ended March 31,
Derivatives designated as hedging instruments	2025		2024

Foreign exchange contracts	$	(129)	$	201

Derivatives Not Designated as Hedging Instruments

Interest and mark to market losses related to the Company’s derivative financial instruments not designated as hedging instruments that were recognized in earnings are as follows (in thousands):


		Three Months Ended March 31,
Derivatives not designated as hedging instruments	Location of gain (loss)	2025		2024
Interest rate swaps	Mark to market loss on interest rate derivatives	$	(527)	$	(174)
	Interest expense	168		221
		$	(359)	$	47

STOCK COMPENSATION (Tables)

3 Months Ended

Mar. 31, 2025

Share-Based Payment Arrangement [Abstract]

Summary of Stock Option Activity and Related Information

A summary of the Company’s stock option activity and related information for the three months ended March 31, 2025 is as follows:


	Options		Weighted- average exercise price		Weighted- average remaining contractual life (years)	Aggregate intrinsic value (in thousands)
Options outstanding, January 1, 2025	782,500		$	11.41
Grants	44,500		5.13



Options outstanding, March 31, 2025(1)	827,000		11.07		4.8	$	—
Options exercisable, March 31, 2025	688,750		$	11.74	3.9	$	—
Total unrecognized stock option expense remaining (in thousands)	$	426
Weighted-average years expected to be recognized over	1.7

Summary of Restricted Stock Activity

A summary of the Company’s restricted stock activity and related information for the three months ended March 31, 2025 is as follows:


	Restricted Shares		Weighted- average grant date fair value
Non-vested restricted shares, January 1, 2025	593,526		$	9.46
Grants	338,705		5.15
Vested	(193,096)		10.42
Forfeitures	(188)		8.02
Non-vested restricted shares, March 31, 2025	738,947		$	7.23
Total unrecognized compensation expense remaining (in thousands)	$	4,564
Weighted-average years expected to be recognized over	1.9

Summary of Performance-based Award Activity

A summary of the Company’s performance-based award activity and related information for the three months ended March 31, 2025 is as follows:


	Performance- based stock awards (1)		Weighted- average grant date fair value
Non-vested performance-based awards, January 1, 2025	529,407		$	8.96
Grants	331,561		5.13


Forfeitures(2)	(123,069)		12.19
Non-vested performance-based awards, March 31, 2025	737,899		$	6.70
Total unrecognized compensation expense remaining (in thousands)	$	3,197
Weighted-average years expected to be recognized over	2.2

(1)Represents the target number of shares to be issued for each performance-based award.

(2)Includes the forfeiture of performance-based awards granted in 2022 as the performance metric was not attained.

Share-based Payment Arrangement, Cash Settled Performance Shares, Activity [Table Text Block]

A summary of the Company’s cash-settled performance-based awards activity and related information for the three months ended March 31, 2025 is as follows:


	Cash-settled performance-based awards (1)		Weighted- average fair value
Non-vested cash-settled performance-based awards, January 1, 2025	82,176		$	5.91


Forfeitures(2)	(82,176)		5.91
Non-vested cash-settled performance-based awards, March 31, 2025	—		$	—
Total unrecognized compensation expense remaining (in thousands)	$	—
Weighted-average years expected to be recognized over	0.0

(1) Represents the target number of units to be settled in cash.

(2) Includes the forfeiture of performance-based awards granted in 2022 as the performance metric was not attained.

Summary of Stock Compensation Expense

The Company recorded stock compensation expense as follows (in thousands):


	Three Months Ended March 31,
Stock Compensation Expense Components	2025		2024
Equity based stock option expense	$	70	$	50
Restricted and performance-based stock awards expense	993		749
Stock compensation expense for equity based awards	1,063		799
Liability based stock option expense	(1)		8

Total Stock Compensation Expense	$	1,062	$	807

INCOME (LOSS) PER COMMON SHARE (Tables)

3 Months Ended

Mar. 31, 2025

Earnings Per Share [Abstract]

Calculations of Basic and Diluted Income (Loss) per Common Share

The calculations of basic and diluted loss per common share for the three months ended March 31, 2025 and 2024 are as follows:


	Three Months Ended March 31,
	2025		2024
	(in thousands, except per share amounts)
Net loss – Basic and Diluted	$	(4,201)	$	(6,260)
Weighted-average shares outstanding – Basic	21,592		21,377
Effect of dilutive securities:
Stock options and other stock awards	—		—
Weighted-average shares outstanding – Diluted	21,592		21,377
Basic loss per common share	$	(0.19)	$	(0.29)
Diluted loss per common share	$	(0.19)	$	(0.29)
Antidilutive Securities(1)	1,417		1,605

(1) Stock options and other stock awards that have been excluded from the denominator as their inclusion would have been anti-dilutive.

BUSINESS SEGMENTS (Tables)

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

Segment Reporting Information


	Three Months Ended March 31,
	2025		2024
Segment Performance Measures:	(in thousands)
Net sales:
U.S.	$	128,510	$	130,480
International	11,575		11,762
Total net sales	$	140,085	$	142,242
Gross Margin:
U.S.	$	46,564	$	53,283
International	4,073		4,264
Total gross margin	$	50,637	$	57,547
Income from operations
U.S.	$	1,898	$	9,442
International	(2,952)		(3,089)
Unallocated corporate income (expenses)(1)	2,153		(4,523)
Income from operations	$	1,099	$	1,830

(1) Unallocated corporate income for the three months ended March 31, 2025 included a net legal settlement gain of $6.4 million. Details see NOTE 12 — CONTINGENCIES


	Three Months Ended March 31,
	2025		2024
Supplemental information for significant segment expenses:	(in thousands)
Cost of sales:
U.S.	$	81,946	$	77,197
International	7,502		7,498
Total cost of sales	$	89,448	$	84,695
Freight-out expenses:
U.S.	$	3,279	$	3,312
International	545		798
Total freight-out expenses	$	3,824	$	4,110
Warehouse expenses:
U.S.	$	11,512	$	9,691
International	2,734		2,380
Total warehouse expenses	$	14,246	$	12,071
Selling, general and administrative expenses:
U.S.	$	29,875	$	30,838
International	3,746		4,175
Unallocated corporate (income) expenses(1)	(2,153)		4,523
Total selling, general and administrative expenses	$	31,468	$	39,536

(1) Unallocated corporate income for the three months ended March 31, 2025 included a net legal settlement gain of $6.4 million. Details see NOTE 12 — CONTINGENCIES


	Three Months Ended March 31,
	2025		2024
	(in thousands)
Depreciation and amortization:
U.S.	$	5,379	$	4,656
International	319		283
Total depreciation and amortization	$	5,698	$	4,939
Capital expenditures:
U.S.	$	1,567	$	516
International	6		84
Total capital expenditures	$	1,573	$	600


	March 31, 2025		December 31, 2024
	(in thousands)
Assets
U.S.	$	500,419	$	542,420
International	83,799		88,961
Unallocated corporate	10,375		2,929
Total Assets	$	594,593	$	634,310

OTHER (Tables)

3 Months Ended

Mar. 31, 2025

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Cash Dividends Declared

Dividends declared in the three months ended March 31, 2025 were as follows:

Dividend per share

Date declared

Date of record

Payment date

$0.0425

3/11/2025

5/1/2025

5/15/2025

Supplemental Cash Flow Information

Supplemental cash flow information


	Three Months Ended March 31,
	2025		2024
	(in thousands)
Supplemental disclosure of cash flow information:
Cash paid for interest	$	4,286	$	5,105
Cash paid for taxes, net of refunds	211		282

Components of Accumulated Other Comprehensive Loss, Net

Components of accumulated other comprehensive loss, net


	Three Months Ended March 31,
	2025		2024
	(in thousands)
Accumulated translation adjustment:
Balance at beginning of period	$	(18,384)	$	(32,614)
Translation adjustment during period	417		40


Balance at end of period	$	(17,967)	$	(32,574)
Accumulated deferred gains on cash flow hedges:
Balance at beginning of period	$	247	$	(134)
Change in unrealized (losses) gains	(192)		70
Amounts reclassified from accumulated other comprehensive loss:
Settlement of cash flow hedge (1)	63		131
Net change in cash flow hedges, net of taxes of $0, $0	(129)		201
Balance at end of period	$	118	$	67
Accumulated effect of retirement benefit obligations:
Balance at beginning of period	$	(178)	$	(751)
Amounts reclassified from accumulated other comprehensive loss: (2)
Amortization of actuarial loss, net of taxes of $(1), $(4)	4		13
Balance at end of period	$	(174)	$	(738)
Total accumulated other comprehensive loss at end of period	$	(18,023)	$	(33,245)

(1)Amounts reclassified are recorded in cost of sales on the unaudited condensed consolidated statement of operations.

(2)Amounts are recorded in selling, general and administrative expense on the unaudited condensed consolidated statements of operations.

BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES - Additional Information (Details) - USD ($) $ in Millions	6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Mar. 31, 2025	Oct. 01, 2024
Schedule Of Significant Accounting Policies [Line Items]
Percentage of total annual net sales in the third and fourth quarters	58.00%	57.00%
U.S.
Schedule Of Significant Accounting Policies [Line Items]
Goodwill, percentage of fair value in excess of carrying value				5.00%
Receivables Purchase Agreement
Schedule Of Significant Accounting Policies [Line Items]
Receivables available for sale			$ 16.0

BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES - Components of Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Accounting Policies [Abstract]
Finished goods	$ 199,526	$ 192,480
Work in process	141	62
Raw materials	10,386	9,866
Total	$ 210,053	$ 202,408

REVENUE - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Disaggregation of Revenue [Line Items]
Net sales:	$ 140,085	$ 142,242
Shipping and Handling
Disaggregation of Revenue [Line Items]
Net sales:	$ 700	$ 600

REVENUE - Summary of Company's Revenue Disaggregated by Geographic Region and Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Disaggregation of Revenue [Line Items]
Net sales:	$ 140,085	$ 142,242
United States
Disaggregation of Revenue [Line Items]
Net sales:	124,205	126,134
United Kingdom
Disaggregation of Revenue [Line Items]
Net sales:	6,954	7,466
Rest of World
Disaggregation of Revenue [Line Items]
Net sales:	8,926	8,642
U.S. segment
Disaggregation of Revenue [Line Items]
Net sales:	128,510	130,480
U.S. segment \| Kitchenware
Disaggregation of Revenue [Line Items]
Net sales:	79,521	83,530
U.S. segment \| Tableware
Disaggregation of Revenue [Line Items]
Net sales:	27,577	25,759
U.S. segment \| Home Solutions
Disaggregation of Revenue [Line Items]
Net sales:	21,412	21,191
International segment
Disaggregation of Revenue [Line Items]
Net sales:	$ 11,575	$ 11,762

LEASES - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended
LEASES - Lease Cost (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Mar. 31, 2024
Operating lease expenses:
Fixed lease expense	$ 4,258	$ 4,263
Variable lease expense	1,753	1,368
Total	$ 6,011	$ 5,631

LEASES - Supplemental Cash Flow Information Related To Leases (Details) - USD ($) $ in Thousands		3 Months Ended
	Jan. 23, 2025	Mar. 31, 2025	Mar. 31, 2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$ 7,300	$ 4,814	$ 4,718
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		$ 0	$ 0

LEASES - Maturities of Operating Lease Liability (Details) $ in Thousands	Mar. 31, 2025 USD ($)
Leases [Abstract]
2025 (excluding the three months ended March 31, 2025)	$ 14,458
2026	18,916
2027	14,678
2028	12,888
2029	6,735
2030	4,914
Thereafter	8,953
Total lease payments	81,542
Less: Interest	(12,834)
Present value of lease payments	$ 68,708

LEASES - Average Lease Terms And Discount Rates (Details)	Mar. 31, 2025
Leases [Abstract]
Operating lease, weighted average remaining lease term (in years)	5 years 1 month 6 days
Operating lease, weighted average discount rate, percent	6.60%

LEASES - Narrative (Details) - USD ($)		3 Months Ended
LEASES - Narrative (Details) - USD ($)	Jan. 23, 2025	Mar. 31, 2025	Mar. 31, 2024
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Term of Contract	180 months
Operating cash flows for operating leases	$ 7,300,000	$ 4,814,000	$ 4,718,000
Annual escalations in rent	0.03
Rental Abatement	7,200,000
Tenant Improvements	$ 5,100,000

INVESTMENTS - Summarized Equity in Earnings, Net of Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2025
Schedule of Equity Method Investments [Line Items]
Equity in losses, net of taxes	$ (2,092)
Grupo Vasconia S.A.B.
Schedule of Equity Method Investments [Line Items]
Equity in losses, net of taxes	$ (2,100)
Equity Ownership, Excluding Consolidated Entity and Equity Method Investee, Percentage		24.70%

INTANGIBLE ASSETS - Components of Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Schedule of Intangible Assets Disclosure [Line Items]
Goodwill, Gross	$ 33,237	$ 33,237
Goodwill	33,237	33,237
Finite-lived intangible assets, Accumulated Amortization	(123,452)	(119,041)
Total, Gross	302,649	302,568
Total, Net	179,197	183,527
U.S. segment
Schedule of Intangible Assets Disclosure [Line Items]
Goodwill, Impaired, Accumulated Impairment Loss	(79,800)	(79,800)
International segment
Schedule of Intangible Assets Disclosure [Line Items]
Goodwill, Impaired, Accumulated Impairment Loss	(11,900)	(11,900)
Licenses
Schedule of Intangible Assets Disclosure [Line Items]
Finite-lived intangible assets, Gross	15,847	15,847
Finite-lived intangible assets, Accumulated Amortization	(12,680)	(12,566)
Finite-lived intangible assets, Net	3,167	3,281
Trade name
Schedule of Intangible Assets Disclosure [Line Items]
Finite-lived intangible assets, Gross	104,528	104,459
Finite-lived intangible assets, Accumulated Amortization	(30,325)	(28,619)
Finite-lived intangible assets, Net	74,203	75,840
Customer relationships
Schedule of Intangible Assets Disclosure [Line Items]
Finite-lived intangible assets, Gross	143,158	143,157
Finite-lived intangible assets, Accumulated Amortization	(75,966)	(73,505)
Finite-lived intangible assets, Net	67,192	69,652
Other
Schedule of Intangible Assets Disclosure [Line Items]
Finite-lived intangible assets, Gross	5,879	5,868
Finite-lived intangible assets, Accumulated Amortization	(4,481)	(4,351)
Finite-lived intangible assets, Net	$ 1,398	$ 1,517

DEBT - Additional Information (Details) - USD ($)	3 Months Ended
DEBT - Additional Information (Details) - USD ($)	Mar. 31, 2025	Dec. 31, 2024
Debt Instrument [Line Items]
Quarterly payments, percentage of principal amount	1.25%
Maximum debt instrument leverage ratio	3.25
line of credit facility, maximum borrowing capacity, limited by covenant	$ 63,200,000
Extended Term Loan [Member]
Debt Instrument [Line Items]
Debt instrument, face amount	150,000,000.0
ABL Credit Agreement
Debt Instrument [Line Items]
Maximum aggregate principal allowed	150,571,000	$ 176,329,000
Minimum availability under revolving credit to maintain minimum fixed charge ratio for four consecutive months	$ 20,000,000.0
Commitment fee percentage	10.00%
Maximum fixed charge coverage ratio	1.10
Debt Agreements
Debt Instrument [Line Items]
Percentage of capital stock of foreign subsidiaries pledged as collateral	65.00%
Minimum term under revolving credit to maintain minimum fixed charge ratio	45 days
Term Loan
Debt Instrument [Line Items]
Debt Instrument, Covenant, Maximum Total Net Leverage Ratio	5.00
Estimated Excess Cash Flow principal payment	$ 0
Interest rates on outstanding borrowings	9.94%
Term Loan \| Federal Funds And Overnight Bank Funding Based Rate
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%
Term Loan \| Alternate Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate	4.50%
Term Loan \| One Month Adjusted Term SEcured Overnight Financing Rate ("SOFR")
Debt Instrument [Line Items]
Basis spread on variable rate	1.00%
Term Loan \| SOFR
Debt Instrument [Line Items]
Basis spread on variable rate	5.50%
Minimum \| Term Loan \| One Month Adjusted Term SEcured Overnight Financing Rate ("SOFR")
Debt Instrument [Line Items]
Debt instrument, stated rate	1.00%
Minimum \| Term Loan \| SOFR
Debt Instrument [Line Items]
Debt instrument, stated rate	1.00%
Senior Secured Asset Based Revolving Credit Facilities \| ABL Credit Agreement
Debt Instrument [Line Items]
Maximum aggregate principal allowed	$ 200,000,000.0
Increase in maximum borrowing capacity	250,000,000.0
Debt instrument, stated amount	$ 50,000,000.0
Revolving Credit Facility \| ABL Credit Agreement
Debt Instrument [Line Items]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage Paid	0.25%
Revolving Credit Facility \| ABL Credit Agreement \| Federal Funds And Overnight Bank Funding Based Rate
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%
Revolving Credit Facility \| ABL Credit Agreement \| One Month Adjusted Term SEcured Overnight Financing Rate ("SOFR")
Debt Instrument [Line Items]
Debt instrument, stated rate	1.00%
Revolving Credit Facility \| ABL Credit Agreement \| 1, 3 or 6 month interest period
Debt Instrument [Line Items]
Debt instrument, stated rate	0.10%
Revolving Credit Facility \| Minimum \| ABL Credit Agreement
Debt Instrument [Line Items]
Commitment fee percentage	0.20%
Revolving Credit Facility \| Minimum \| ABL Credit Agreement \| Alternate Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate	0.25%
Revolving Credit Facility \| Minimum \| ABL Credit Agreement \| One Month Adjusted Term SEcured Overnight Financing Rate ("SOFR")
Debt Instrument [Line Items]
Debt instrument, stated rate	1.00%
Revolving Credit Facility \| Minimum \| ABL Credit Agreement \| Adjusted Term SOFR
Debt Instrument [Line Items]
Basis spread on variable rate	1.25%
Revolving Credit Facility \| Minimum \| ABL Credit Agreement \| SOFR
Debt Instrument [Line Items]
Interest rates on outstanding borrowings	3.79%
Revolving Credit Facility \| Maximum \| ABL Credit Agreement
Debt Instrument [Line Items]
Commitment fee percentage	0.25%
Revolving Credit Facility \| Maximum \| ABL Credit Agreement \| Alternate Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%
Revolving Credit Facility \| Maximum \| ABL Credit Agreement \| Adjusted Term SOFR
Debt Instrument [Line Items]
Basis spread on variable rate	1.50%
Revolving Credit Facility \| Maximum \| ABL Credit Agreement \| SOFR
Debt Instrument [Line Items]
Interest rates on outstanding borrowings	5.86%

DEBT - Total Availability Under ABL Agreement (Details) - ABL Credit Agreement - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Debt Instrument [Line Items]
Maximum aggregate principal allowed	$ 150,571	$ 176,329
Line of Credit, Current	(39,328)	(42,693)
Standby letters of credit	(11,564)	(8,828)
Total availability under the ABL Agreement	$ 99,679	$ 124,808

DEBT - Schedule of Term Loan Facility (Details) - USD ($) $ in Thousands	Apr. 04, 2025	Mar. 31, 2025	Dec. 31, 2024
Debt Instrument [Line Items]
Total Current portion of Term Loan facility		$ 4,926	$ 4,891
Subsequent Event
Debt Instrument [Line Items]
Excess Cash Flow Payment	$ 1,200
Term Loan
Debt Instrument [Line Items]
Term Loan payment		7,500	7,500
Estimated Excess Cash Flow principal payment		0
Estimated unamortized debt issuance costs		(2,574)	(2,609)
Total Current portion of Term Loan facility		4,926	4,891
Total Non Current portion of Term Loan facility		133,125	135,000
Estimated unamortized debt issuance costs		(3,418)	(4,051)
Total Non-current portion of Term Loan		$ 129,707	$ 130,949

DERIVATIVES - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024	Mar. 13, 2024
Derivative [Line Items]
Gain (loss) reclassified into earnings	$ 100,000	$ (100,000)
Loss to be reclassified within 12 months	100,000
Interest rate swaps
Derivative [Line Items]
Notional amount	50,000,000.0
Derivatives designated as hedging instruments \| Foreign exchange contracts
Derivative [Line Items]
Notional amount	$ 9,300,000
Derivatives not designated as hedging instruments \| Interest rate swaps
Derivative [Line Items]
Notional amount			$ 25,000,000.0

DERIVATIVES - Fair Values of Derivative Financial Instruments Included in Consolidated Balance Sheets (Details) - Fair Value, Observable inputs, Level 2 - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Prepaid expenses and other current assets \| Foreign exchange contracts \| Derivatives designated as hedging instruments
Derivatives, Fair Value [Line Items]
Fair value of derivative assets	$ 20	$ 256
Prepaid expenses and other current assets \| Interest rate swaps \| Derivatives not designated as hedging instruments
Derivatives, Fair Value [Line Items]
Fair value of derivative assets	0	102
Accrued expenses \| Foreign exchange contracts \| Derivatives designated as hedging instruments
Derivatives, Fair Value [Line Items]
Fair value of derivative assets	13	0
Other Noncurrent Assets \| Interest rate swaps \| Derivatives not designated as hedging instruments
Derivatives, Fair Value [Line Items]
Fair value of derivative assets	144	379
Other long-term liabilities \| Interest rate swaps \| Derivatives not designated as hedging instruments
Derivatives, Fair Value [Line Items]
Fair value of derivative liability	$ 344	$ 154

DERIVATIVES - Gains and Losses Related to Derivative Financial Instruments Designated as Hedging Instruments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Derivative Instruments, Gain (Loss) [Line Items]
Net change in cash flow hedges	$ (129)	$ 201
Foreign exchange contracts
Derivative Instruments, Gain (Loss) [Line Items]
Net change in cash flow hedges	$ (129)	$ 201

DERIVATIVES - Gains and Losses Related to Derivative Financial Instruments Not Designated as Hedging Instruments (Details) - Interest rate swaps - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on derivative financial instruments not designated as hedging instruments	$ (359)	$ 47
Mark to market loss on interest rate derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on derivative financial instruments not designated as hedging instruments	(527)	(174)
Interest expense
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) on derivative financial instruments not designated as hedging instruments	$ 168	$ 221

STOCK COMPENSATION - Summary of Stock Option (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2025 USD ($) $ / shares shares
Options
Beginning balance (in shares) \| shares	782,500
Grants (in shares) \| shares	44,500
Ending balance (in shares) \| shares	827,000
Options exercisable, end of period (in shares) \| shares	688,750
Weighted- average exercise price
Beginning balance (usd per share) \| $ / shares	$ 11.41
Grants (usd per share) \| $ / shares	5.13
Ending balance (usd per share) \| $ / shares	11.07
Weighted-average exercise price, Options exercisable, end of period (usd per share) \| $ / shares	$ 11.74
Weighted- average remaining contractual life (years)
Options outstanding, end of period	4 years 9 months 18 days
Options exercisable, end of period	3 years 10 months 24 days
Aggregate intrinsic value (in thousands)
Options outstanding, aggregate intrinsic Value \| $	$ 0
Options exercisable, aggregate intrinsic Value \| $	0
Total unrecognized stock option expense remaining (in thousands) \| $	$ 426
Weighted-average years expected to be recognized over (in years)	1 year 8 months 12 days

STOCK COMPENSATION - Summary of Restricted Stock Activity (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2025 USD ($) $ / shares shares
Restricted Shares
Weighted-average years expected to be recognized over (in years)	1 year 8 months 12 days
Restricted Stock
Restricted Shares
Beginning balance (in shares) \| shares	593,526
Grants (in shares) \| shares	338,705
Vested (in shares) \| shares	(193,096)
Cancellations (in shares) \| shares	(188)
Ending balance (in shares) \| shares	738,947
Total unrecognized compensation expense remaining (in thousands) \| $	$ 4,564
Weighted-average years expected to be recognized over (in years)	1 year 10 months 24 days
Weighted- average grant date fair value
Beginning balance (usd per share) \| $ / shares	$ 9.46
Grants (usd per share) \| $ / shares	5.15
Vested (usd per share) \| $ / shares	10.42
Cancellations (usd per share) \| $ / shares	8.02
Ending balance (usd per share) \| $ / shares	$ 7.23
Fair value of equity instruments \| $	$ 1,000

STOCK COMPENSATION - Additional Information (Details)	3 Months Ended
STOCK COMPENSATION - Additional Information (Details)	Mar. 31, 2025 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Non-plan stock options	15,000
Performance Shares \| Amended and Restated Long Term Incentive Plan Two Thousand
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)	1,142,889

STOCK COMPENSATION - Summary of Performance-based Award Activity (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2025 USD ($) $ / shares shares
Restricted Shares
Weighted-average years expected to be recognized over (in years)	1 year 8 months 12 days
Performance Shares
Restricted Shares
Beginning balance (in shares) \| shares	529,407
Grants (in shares) \| shares	331,561
Cancellations (in shares) \| shares	(123,069)
Ending balance (in shares) \| shares	737,899
Total unrecognized compensation expense remaining (in thousands) \| $	$ 3,197
Weighted-average years expected to be recognized over (in years)	2 years 2 months 12 days
Weighted- average grant date fair value
Beginning balance (usd per share) \| $ / shares	$ 8.96
Grants (usd per share) \| $ / shares	5.13
Cancellations (usd per share) \| $ / shares	12.19
Ending balance (usd per share) \| $ / shares	$ 6.70
Number of shares range percentage	150.00%

STOCK COMPENSATION - Stock Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock compensation expense	$ 1,062	$ 807
Equity based stock option expense
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock compensation expense	70	50
Restricted and performance-based stock awards expense
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock compensation expense	993	749
Equity based awards
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock compensation expense	1,063	799
Liability based stock option expense
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock compensation expense	$ (1)	$ 8

STOCK COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2025	Dec. 31, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average years expected to be recognized over (in years)	1 year 8 months 12 days
Cash Settled Performance Based Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Liability Instruments Other Than Options, Forfeited in Period	(82,176)
Share-based Compensation Arrangement by Share-based Payment Award, Liability Instruments Other than Options, Forfeiteds in Period, Weighted Average Grant Date Fair Value	$ 5.91
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	0	82,176
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value	$ 0	$ 5.91
Total unrecognized compensation expense remaining (in thousands)	$ 0
Weighted-average years expected to be recognized over (in years)	0 years
Number of shares range percentage	150.00%
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation expense remaining (in thousands)	$ 3,197
Weighted-average years expected to be recognized over (in years)	2 years 2 months 12 days
Number of shares range percentage	150.00%

INCOME (LOSS) PER COMMON SHARE - Calculations of Basic and Diluted Loss per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Net loss	$ (4,201)	$ (6,260)
Weighted-average shares outstanding - Basic (in shares)	21,592	21,377
Effect of dilutive securities:
Weighted-average shares outstanding - diluted (in shares)	21,592	21,377
Basic income (loss) per common share (usd per share)	$ (0.19)	$ (0.29)
Diluted income (loss) per common share (usd per share)	$ (0.19)	$ (0.29)
Antidilutive securities (in shares)	1,417	1,605
Stock options and other stock awards
Effect of dilutive securities:
Stock options and other stock awards (in shares)	0	0

INCOME TAXES - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Income tax benefit (provision)	$ 142	$ (210)
Effective income tax benefit rate on US and foreign earnings, percent	3.30%	(5.30%)
Corporate income tax rate	21.00%	21.00%

BUSINESS SEGMENTS - Segment Reporting Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024	Dec. 31, 2024
Segment Reporting Information [Line Items]
Net sales:	$ 140,085	$ 142,242
Gross profit	50,637	57,547
Income from operations	1,099	1,830
Cost of sales	89,448	84,695
Freight Out Costs	3,824	4,110
Warehouse Expenses	14,246	12,071
Selling, general and administrative expenses	31,468	39,536
Depreciation and amortization	5,698	4,939
Segment, Expenditure, Addition to Long-Lived Assets	1,573	600
Assets	594,593		$ 634,310
U.S.
Segment Reporting Information [Line Items]
Net sales:	124,205	126,134
Operating segments \| U.S.
Segment Reporting Information [Line Items]
Assets	500,419		542,420
Operating segments \| International
Segment Reporting Information [Line Items]
Assets	83,799		88,961
Unallocated corporate income (expenses)(1)
Segment Reporting Information [Line Items]
Income from operations	2,153	(4,523)
Selling, general and administrative expenses	(2,153)	4,523
Assets	10,375		$ 2,929
U.S. \| Operating segments
Segment Reporting Information [Line Items]
Net sales:	128,510	130,480
Gross profit	46,564	53,283
Income from operations	1,898	9,442
Cost of sales	81,946	77,197
Freight Out Costs	3,279	3,312
Warehouse Expenses	11,512	9,691
Selling, general and administrative expenses	29,875	30,838
Depreciation and amortization	5,379	4,656
Segment, Expenditure, Addition to Long-Lived Assets	1,567	516
International \| Operating segments
Segment Reporting Information [Line Items]
Net sales:	11,575	11,762
Gross profit	4,073	4,264
Income from operations	(2,952)	(3,089)
Cost of sales	7,502	7,498
Freight Out Costs	545	798
Warehouse Expenses	2,734	2,380
Selling, general and administrative expenses	3,746	4,175
Depreciation and amortization	319	283
Segment, Expenditure, Addition to Long-Lived Assets	$ 6	$ 84

CONTINGENCIES - Additional Information (Details) - USD ($) $ in Millions			3 Months Ended
	Feb. 11, 2025	Sep. 30, 2024	Mar. 31, 2025
Commitments and Contingencies Disclosure [Line Items]
Site Contingency, Environmental Remediation Costs Recognized		5.6 million
Site Contingency, Remaining Liability			$ 5.4
Proceeds from Legal Settlements	$ 7.0
Proceeds from Legal Settlement, net of fees	6.4
Legal Fees	$ 0.6
Capital cost \| San German Ground Water Contamination Site, Initial Operable Unit
Commitments and Contingencies Disclosure [Line Items]
Remedial alternative, EPA preferred remedy			7.3
Capital cost \| San German Ground Water Contamination Site, Second Operable Unit
Commitments and Contingencies Disclosure [Line Items]
Remedial alternative, EPA preferred remedy			$ 17.3

OTHER - Cash Dividends Declared (Details) - $ / shares	3 Months Ended
OTHER - Cash Dividends Declared (Details) - $ / shares	Mar. 31, 2025	Mar. 31, 2024
Dividends Payable [Line Items]
Dividend per share of common stock (usd per share)	$ 0.0425	$ 0.0425

OTHER - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

Feb. 14, 2025

Mar. 31, 2025

Mar. 31, 2024

Mar. 14, 2022

Apr. 30, 2013

Other [Line Items]

Cash dividends paid

$ 996

$ 1,026

Cash dividend paid upon vesting of restricted shares and performance shares

100

Dividends accrued

$ 985

$ 943

^[1]

Dividend per share, declared (usd per share)

$ 0.0425

Stock Repurchase Program, Authorized Amount

$ 20,000

$ 10,000

Stock Repurchase Program, Remaining Authorized Repurchase Amount

$ 11,100

Accumulated deficit

Other [Line Items]

Dividends accrued

^[1]

$ 985

$ 943

2025Q1DividendsDeclaredMember [Member]

Other [Line Items]

Cash dividends paid

$ 900

[1]	Cash dividends declared per share of common stock were $0.0425 and $0.0425 in the three months ended March 31, 2025 and 2024, respectively.

OTHER - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Supplemental disclosure of cash flow information:
Cash paid for interest	$ 4,286	$ 5,105
Cash paid for taxes, net of refunds	$ 211	$ 282