Q4 2024 Lifetime Brands Inc Earnings Call
Rory Rumore, Robert Kay, Robert Kay, Rory Rumore, Unknown Executive
Rory Winoker, Robert Kay, Rory Rumore, Unknown Executive
Robert Kay, Rory Rumore, Unknown Executive
Speaker Change: Good morning, ladies and gentlemen, and welcome to Lifetime Brands 4th quarter 2024 or our next conference call.
Speaker Change: At this time, I would like to inform all participants that their lines will be in a listen only mode. After the speakers remarks, there will be a question and an answer portion of the call. If you would like to ask a question during this time, please press star one on your telephone keypad. I would now like to introduce your host for today's conference.
Rory Rumore, Mr. Rumore, you may begin Rory Rumore, Mr.
Speaker Change: Thank you. Good morning and thank you for joining Lifetime Brands' fourth quarter, 2024 earnings call. With us today from Management, Arab Kay, Chief Executive Officer, and Larry Winoker, Chief Financial Officer.
Speaker Change: Before we begin the call, I'd like to remind you that our remarks this morning may contain forward-looking statements that relate to the future performance of the company, and these statements are intended to qualify for the safe harbor protection from liability established by the Private Security's litigation reform act.
Speaker Change: Any such statements are not guarantees of future performance and factors that could influence our results are highlighted in our earnings release, and other factors are contained in our filings with the Securities and Exchange Commission.
Speaker Change: Such statements are based upon information available to the company as of the day hereof and are subject to change for future development.
Speaker Change: Except as required by law, the company does not undertake any obligations to update such statements.
Speaker Change: Our remarks this morning and in our earnings release also contain non-GAAP financial measures within the meaning of regulation G, homogated by the Securities and Exchange Commission.
Speaker Change: Included in such release is a reconciliation of these non-GAAP financial measures with the comparable financial measures calculated in accordance with Gap. With that introduction, I'd like to turn a call over to Rob Kay. Please go ahead, Rob.
Thank you.
Good morning, everyone, and thank you for joining us today.
Speaker Change: We are pleased with our strong fourth quarter performance contributing to our solid reports for the full year 2020-24.
Speaker Change: We delivered main mid single digit sales growth in the fourth quarter of 2024 and expanded our gross margin by 130 basis points.
Speaker Change: Our fourth quarter net sale increased 6% to $215 million as compared to $203 million in the same period last year.
Importantly, the positive performance in sales and gross margin.
Speaker Change: Demonstrates our team's strategic approach to retain and improve margin during the seasonal period that this year has strongly favored promotions.
Designating Lifetime as a competitive performer within the sector of the sector.
Speaker Change: Margin Strength was led by a significant improvement in the gross margin of our international business.
Speaker Change: As indicated by third-party data drawn from the Consumer Retail Sector.
and Lifetime's internal data analysis.
director.
Speaker Change: which concluded that the first two months of the First Quarter signaled soft consumer demand, which could quickly reverse in December driven by our e-commerce business.
Speaker Change: that flocked to the e-commerce channel where they could receive delivery of products in 24 to 48 hours.
Speaker Change: Disbullied our online sales to 24% of total sales in the fourth quarter.
and more of a 20% for the full year 2024.
Speaker Change: While online sales undoubtedly led our growth in the fourth quarter, we also recognize sales growth and consistent strength in the club channel, a core pillar of our US business.
Speaker Change: The Strength of Stales Contribution by these channels are signs of lifetime success in growing market share in the fourth quarter.
Speaker Change: Let me drill down to the specific categories and products that spurred e-commerce sales during the quarter.
Speaker Change: Park Publicly, Tableware, Categories, and Home to Care products outperformed for a year and internal forecasts.
and Drill Marker Chair Growth in the Channel.
Speaker Change: Consolidated e-commerce sales increased 9% at $51.5 million, quarter over quarter and 4.2% to $137.7 million for the full year period.
Speaker Change: USV Commerce Sales reported a second consecutive quarter of double-digit growth with an increase of 10% in the fourth quarter year over year.
While we gained overall market share in the quarter.
Speaker Change: The prior decline in the mass channel was an offset to our core US business.
Pacific to our full year, 2020, poor results . .
Speaker Change: We are encouraged by the support in our top line which met our expectations.
and Improving Gross Margin.
Despite the disorientation and the industry [inaudible]
Stemming From Various Customers and Channels
Speaker Change: Combined with a shift to a more cautious consumer in response to the uncertain macro environment and headwinds from persistent inflation, we continue to believe in the resilience of our business model validated by our financial performance.
Speaker Change: In terms of the Dolly Parton program, a key growth driver in 2024.
Speaker Change: While Dollar General made the decision to delay the remaining program shipments to the first quarter of 2025,
Speaker Change: We are pleased to report the inventory is shipping on pace to recognize the incremental four million dollars in sale from the dollar store in the first quarter of 2025.
Further, similar to product performance last year.
Kudai Selfu at Dollar General has been very strong.
Speaker Change: Overall, the successful launch of this program and Lifetime's entrance into this new channel has been a strategic win for our company in 2024.
Speaker Change: Additionally, our organic growth strategy was validated with the $7 million in incremental sales generated in 2024 from this one program.
In 2025.
We are prioritizing
scale.
Excuse me.
Speaker Change: We are prioritizing organic growth by leveraging the dolly part and brand as an additional anchor for Lifetime as we establish scale across our current retail channels.
combined with innovating the brand into adjacent product categories.
Speaker Change: We have now shipped Dolly Parton products across four of our product categories.
Speaker Change: In fact, our ongoing dialogue with additional customers and channel partners has secured meaningful 2025 shipments.
Speaker Change: Predicated on the successful adoption in 2024 and the continued market success of this program.
Speaker Change: We expect that $2,024 dollar dollar to double from the $7,000 sales shipped in 2024.
Turning to our international segment.
Speaker Change: Sales increased 7.2% from the Comple Quarter in the prior year and demonstrated a second consecutive quarter of sales growth.
Speaker Change: This quarter's continued favorable sales performance was a result of traction in our new regional brand launches, particularly KitchenAid.
Speaker Change: We've continued to successfully execute our go-to market strategy, targeting national retailers and gaining market share in Europe by diversifying our channels and prioritizing our e-commerce presence.
Speaker Change: As a highlight of the consecutive quarter of positive performance, we leverage the uptick in e-commerce with a re-launched, higher margin product offering.
Speaker Change: Specifically, our international position in Amazon was a driver of meaningful margin improvement of 1,140 basis points.
Speaker Change: 238.6% in the fourth quarter from 27.2% in the prior year quarter.
Speaker Change: Tributing to an improved margin of 300 base points for the full year 2024.
Speaker Change: Our fourth quarter, sales and gross large improvement in our international business.
Speaker Change: Demonstrate that our turnaround strategy is operating as intended with near turn return to profitability a reasonable financial target.
Speaker Change: By returning the business to profitability, we have an opportunity to add an incremental $9 million in annual EBITDA.
Speaker Change: This should be highlighted at as one of the key reasons behind our focus on restoring
Speaker Change: In a little bit, I will discuss Project Concord, which we launched in January 2025 and is designated to accelerate our international business reaching profitability.
Speaker Change: Before I move on from international, I will provide brief commentary on some specifics.
Speaker Change: While we are incurred by the performance of the international business as a whole, the UK and markets remains opt, as the man lagged in both Europe and Asia Pacific.
Speaker Change: Momentum in Europe gained due archers' strategic shift, with recent placements at larger retailers such as Le Clare and Carfort in France, Etica in Germany, and Amaco in Denmark.
Speaker Change: We continue to expect a benefit in our financial performance during 2025 from these 2024 wins.
Speaker Change: That being said, we are closely monitoring consumer demand in these markets.
Speaker Change: In Asia Pacific, we continue to gain traction with the expansion of our listings in multiple brands and through expanded retailers, particularly in Australia.
Speaker Change: The main driver of this performance in 2024 was the finalization of the build-out of our own infrastructure and integration of our fully direct sales strategy in Asia Pacific.
Speaker Change: We are encouraged by the results during the first quarter with this new platform in place with early top line growth establishing a path to more profitable growth and contribution marks.
Briefly touching on our Food Service business [inaudible]
Speaker Change: 2014 was a year of positioning Lifetime as a larger competitor in the industry and a staff of credibility with the broader market participants.
Speaker Change: New listings, particularly in our expanded Macasa Hospitality Product offering, to include Premium Glassware Brands, Royal Lear Demon Onus.
Arx Spectator Fuel Seals, Sales Group .
Speaker Change: In 2025, we are forecasting for full growth in our hospitality business.
Speaker Change: In terms of our M&A pipeline, we continue to accurately pursue a strong subset of opportunities and our evaluating targets primarily in new product adjacencies.
Speaker Change: Food Services and the outdoor sector. In addition to targets which meet our qualification that the business is immediately accretive to profitability.
Speaker Change: valuations for companies in our pipeline have recently revealed attractive discounts relative to recent years, largely based on duration and an M&A environment that is consolidating online with the broader market set.
Speaker Change: We will continue to pursue potential opportunities and perform rigorous due diligence to confirm a target's business suits our core criteria while maintaining our financial discipline.
Speaker Change: We will keep the market updated on all strategic M&A initiatives in a timely manner.
Speaker Change: Shifting to our recent developments, I'm excited to publicly discuss the changes within our US
Speaker Change: In January , we announced this strategic decision to relocate our East Coast Distributes and Center from New Jersey to Maryland.
Speaker Change: We believe this to be a prudent and proactive operational efficiency that will result in significant cost containment.
Speaker Change: A new location is a built to suit warehouse space with over one million square feet, an increase of 30% from our current New Jersey Distribution Center.
Speaker Change: I'd highlight that we negotiated a 100% payment deferral of three years related to the 30% incremental space.
Speaker Change: Overcome we will realize operating leverage and efficiencies to the increased capacity.
Speaker Change: Synergistic opportunities and warehouse automation capabilities that will accommodate our long-term organic and inorganic growth initiatives.
Speaker Change: An important consideration in this relocation was the receipt of approximately $13 million in government subsidies.
Speaker Change: as a new facility will help spur the local economy and merit.
Speaker Change: In terms of capital expenditure, our total costs are $10 million, with $5.6 million anticipated in 2025, and the balance to be realized in 2026.
Speaker Change: There are constant puts and takes in undertaking infrastructure projects and we are confident that this pivot will be a benefit to the company long term.
We believe this is an operation-linked prudent decision.
Speaker Change: We will profit from cost avoidance as we enhance our competitive position with easy access to the Baltimore and Virginia ports and closer proximity to our large customer distribution centers, which is an opportunity to capture growth and market share.
Speaker Change: I'll spend a moment to comment on the recently implemented tariffs.
Speaker Change: Keep in mind that this is a fluid topic as the impact on the retail sector, the consumer, and the general economy.
Speaker Change: First and then foremost, our team is well versed with prior experience navigating an economy of newly implemented tariffs.
Speaker Change: Our approach this matter has been developed over the past two years as we made the decision to work towards a reduced dependency on China's source products.
Speaker Change: Are actions since the dramatic and speedy implementation of tariffs are designed to mitigate the financial impact of these tariffs on any effective product which gives the company valuable time to integrate more structural changes?
Speaker Change: These actions have insulated the company from any negative impact of tariffs in the first quarter of 2025.
Speaker Change: We are in the midst of taking further action including price increases on affected products to mitigate the tariff impacts for the remainder of 2025.
Speaker Change: Importantly, we believe we've taken more action and earlier than many of our peers.
Speaker Change: An entire scenario promulgates risk and uncertainty across commerce and trade markets.
Speaker Change: It is a difficult environment to manage, and we expect this time to be similar.
We continue, we will continue to control what we can [inaudible]
Speaker Change: And this includes various structural changes including implementing price changes and shifting production to various geographies out of China.
Speaker Change: In 2024, our presence relative to the anticipated tariffs that took effect in 2025 require agility.
Speaker Change: More specifically, our solid balance sheet acts as a key component to ensure our agility and control in advance of fluctuations.
Speaker Change: Lastly, Emma's announcement or earnings release, I'd like to briefly mention Project Concord.
Speaker Change: which includes initiatives developed by management and launched in January 2025.
Speaker Change: Concord is our comprehensive turnaround plan aimed to propel growth and streamline the cost structure of our international operations.
Speaker Change: As indicated in my prior remarks, our focus is on developing initiatives that are aligned with streamlining Lifetime's operations for efficiency.
Speaker Change: Bioritizing centralization, which will benefit our customers with improved speed to delivery of our inventory and positioning lifetimes well-recognized brand portfolio to be the brands of choice.
As we realize our efforts from prioritizing efficiencies [inaudible]
We expect to improve operating leverage and profitability measures.
Speaker Change: The financial performance that we expect to develop in our international operations as a result of Concord is the combination of incremental sales growth and cost reduction that will produce a breakeven level of profitability.
At An Accelerated Pace
to provide a near-term focus in the international business.
Speaker Change: We expect a $5 million improvement to operating profit in 2025 from full year 2024 figures. With the timelines to achieve our anticipated financial performance targets by 2026.
Speaker Change: We will provide 2026 financial targets and outline the project's priorities and long-term objectives throughout the year.
As we look ahead to 2025.
Speaker Change: The aggressive action taken to mitigate the impact on the implementation of a broad range of tariffs, avoid business interruptions, and control the tension of our market share positions.
What's a favorably in these challenging economic times?
Speaker Change: With Project Concord underway and our new Distribution Center in the Process of Construction in 2007, an Operation in 2026.
Speaker Change: We believe we have the right foundation in place to continue to grow market share and create value as we navigate recent macro and industry specific disruptions.
Speaker Change: Our strong foundation and decisive actions taken over the past several years have continued to foster our
Larry Winoker: Before I turn the call to Larry, I'd like to show that Lifetime will hold an investor day in November 2025.
Larry Winoker: At the event, we will introduce key members of Lifetime's extended management team and business unit heads, outline our multi-units strategic growth plan and present a five-year financial outlook.
Larry Winoker: We will provide additional details in the coming months. With that, I'll now turn the call over to Larry.
Larry Winoker: Thanks Rob. As you report this morning, that income for the fourth quarter of 2024 with $8.9 million or 41 cents per deluded share versus $2.7 million.
Larry Winoker: With 13 cents per diluted share in a fourth quarter of 23. Adjusts an income with $12 million for the fourth quarter of 24, 55 cents.
Larry Winoker: for diluted shares, compared to 6.3 million or 29 cents for diluted share in 2023, income from operations was 15.5 million, the fourth quarter of 24 is compared to 15.7 in the 23 period.
Larry Winoker: Adjusted income from operations for the 4th quarter of 24 was 20.2 million compared to 19.4 million in the 23 period and Adjusted EBITDA for the full year 2024 was 55.4 million
Larry Winoker: But Justin had income, but Justin had income from operations and adjusted EBITDA on non-GAAP measures which are reconciled to our GAAP financial measures in the earnings release.
Larry Winoker: Following comments are from the 4th quarter of 2024 and 2023, unless stated otherwise, to solidate sales increased by 6% to 215.2 million. U.S. Second Sales increased 5.8% to $196 million.
Larry Winoker: As Rob commented, seasonal consumer demand accelerated in December . Fourth quarter sales growth was driven by continued execution of our online sales strategy leading to additional market share gain in the e-commerce channel.
Larry Winoker: Most product line sales increase, notably cutlery and home decor, which is partially offset by kitchen tools products.
Larry Winoker: International segment sales increased by 7.2%, or 1.3 million, and $800,000 in constant US dollars to 19.2 million.
Larry Winoker: This increase came from e-commerce and U.K. nationals partially offset by the decrease for U.K. independence.
Gross margin increased to 37.7% from 36.4%
Larry Winoker: The U.S. segment gross margin increased to 37.7 from 37.2. The improvement was primarily due to favorable product mix in the tableware category.
Larry Winoker: Brings to national gross margin increased to 38.5% from 27.2% driven by customer and product mix, low close-out volume and lower inventory reserves.
The Solid-A distribution expense as a percent of warehouse shipments [inaudible]
Excluding non-recurring expenses [inaudible]
Larry Winoker: was 10% versus 9.7%. In the US, warehouse expenses increased from high depreciation expense.
Related to the Exiting of the Robinsville Facility
Larry Winoker: Implementation Expenses and Start-up Inefficiencies of a new warehouse management system and related ongoing software expense and generally higher labor rates. These expenses were partially offset by lower freight out above the US and international
Larry Winoker: Selling General and administrative expenses increased $4.5 million to $43.2 million [inaudible]
Larry Winoker: of the increase approximately 2.5 million related to higher intangible amortization expense for a trade name reclassification from indefinite to definite life.
Edition, Prior Reduction of Contention Consideration
Larry Winoker: Allowances for bad debt and start-up costs for the new operation in Australia and New Zealand.
Larry Winoker: Interest expense excluding a mock-to-market adjustment for swaps was unchanged. The winded average higher interest rates on our variable rate debt was offset by lower average borrowings.
Larry Winoker: For the 2024 full year, the effective tax rate excluding the right off of our equity investment in Gupe Vasconia, for which there's no current benefit with 75.5%. This rate differs from the federal statutory rate primarily due to farm losses, for which there's no tax benefit.
Larry Winoker: State and local income taxes, and certain other non-deductible expenses, partially offset by a reduction of uncertain tax positions.
Looking at a balance sheet, it continues to remain strong.
Larry Winoker: At year-end liquidity was $111.7 million, which is comprised of cash plus availability under our credit facility and receivable purchase agreement.
Larry Winoker: For the full year, we generated free cash flow with $16.3 million, which is netted by planned increase in inventory to help mitigate the risk of tariffs in 2025 as we move products
Larry Winoker: And now we're adjusted EBITDA to net that ratio at year end with 3.5 times. This concludes our prepared comments. Operator, please open the line for questions.
Speaker Change: Thank you. Our first question is from Anthony Lebiedzinski with Sedodian Company. Please stay with your question.
Anthony Lebedzinski: Good morning and thank you for taking the questions. So certainly great to see the better-than-expected sales in the fourth quarter with sales accelerating in December . I know you talked about momentum in the e-commerce channel.
Speaker Change: Also, as far as e-commerce, whether you've seen continued momentum from that in the first quarter, so far in early 2025.
Morning, Anthony.
Speaker Change: So we saw in a couple, we saw across all different channels, and we saw a different...
Speaker Change: Performance in different channels. But we saw that the consumer were shopping later because they can get more delivery and we've had success all throughout the year in terms of growing our online business. And that continued and we do see that continuing.
Um...
Speaker Change: Again, different month by month as we talked about, the first two months of the fourth quarter actually is slower than we thought, and slower than I think a lot of the industry prognosticators had said, and the fourth quarter really, sorry, the third month, December really came in strong and made it a good seasonal.
Foreman.
Speaker Change: Mass, as a company, lost a little share on the KitchenAid side, and that hurt our performance in the channel for the year. We're looking to rebound.
Speaker Change: and I think that's a one-time movement in terms of that loss. And sometimes if we lose, sometimes we win. Fortunately, over the last five years, we've won a lot more than the loss and we continue to try to make that not going trend.
Yeah, it's your question, Anthony.
Anthony Lebedzinski: Yes, yes, thanks for that, okay? And then with respect to the tariffs, can you give us an update on your exposure to China and where do you see that finishing up this year in 2025?
Yeah, I mean it's very fluid [inaudible]
Anthony Lebedzinski: Alright, the whole tariff situation remains fluid and we have to react. We have continued to move to various geographies.
Anthony Lebedzinski: with the thought process among other things that we didn't want to explode here in just one particular jar please tell us.
Anthony Lebedzinski: We're moving in many, many different places throughout the world. Look, we'd like to move to the United States, but, you know, we're not prepared to sell a can opener for over $20 and so at this point, not feasible.
Unknown Speaker Okay.
In terms of production in China today, you know, still...
Anthony Lebedzinski: The majority of what we produce, and we're looking to move the majority of what we produce out of China, and we're hoping that we get the majority of it out within 2025.
Anthony Lebedzinski: That's it. Okay. And then just moving on to the International Segment. So...
Speaker Change: I know you guys did about fifty-six million dollars in sales in twenty-four [inaudible]
Speaker Change: Did you give an operating loss number for the segment and maybe I missed it and also
Speaker Change: As far as that's concerned, it sounds like you expect to get to break even by 2026, just wanting to confirm that.
Yes, so I'll let her allow you to enter the specifics, but
Speaker Change: Bill, we do expect from what we've already achieved, and as the things that we're working on who have a substantial improvement in that performance in 25. But we look at that business and we want to accelerate that, and that's the whole purpose
Speaker Change: Project Concord. So, we're looking to get to break even run rate by the end of 2025.
Speaker Change: But because of the timing and the timing of making some changes that we will be doing, we won't take a break even level appropriately in 25, but we will in 26.
Anthony, but that loss came in just on to 10 million.
Speaker Change: So EBIT, Larry, do you have the EBIT number for 24 for the internet? EBIT would be, EBIT would be 10.5.
Speaker Change: Thank you very much. I'll pass it on to others and best of luck to you guys.
Okay.
Speaker Change: Thank you. Our next question is from Brian McNamara with Canacord Genuity. Please proceed with your question.
Brian McNamara: I know the guys congrats on the strong finish of the year. Thanks for taking the questions. So tariffs are obviously the topic of the year these days. And...
Speaker Change: I know you guys don't guide until May usually but I'm curious if we can kind of drill down on your tariff exposure there I think you kind of get some broad strokes in terms of being able to at the end of the day.
Speaker Change: Moved production in the life, but I want one thing we've seen from investors is they like kind of clear quantification of the relevant exposures if you'd be willing to provide.
Tom and
Speaker Change: So, if you look at the global tariff on steel, the exposure isn't very strong and they're not related.
Speaker Change: specifically to China, but it doesn't impact us that much. If you look at the other exposures, it's a function of exclusions that are eliminated, the link to China, I'm sorry. And then the Ken and Tanner vehicle, mental 20%
Speaker Change: So, you know, if we look at 75% of our production being made in China, we're looking to reduce that, hopefully by the end of this year to a much lower dependence.
Speaker Change: So taking over 50% of it outside of China. And really our focus is on our high volume runners. So the stuff that we would leave behind would be much slower and less impactful to the total revenue that we ship.
Speaker Change: Great. And then, you know, a bit strong start the end of the year, so your sales kind of ended the year kind of flatish. Is it a reasonable expectation to expect a return to grow this year on the top line? And if so, what kind of drives that growth?
Speaker Change: So, yeah, there's a lot of things that we talk about rolling over from what continues to that will continue to experience in 25. So disregarding, you know, disruptions to the macro environment and disregarding which is going to impact the general economy going into a recession. Right, the momentum will continue on the food service business.
Speaker Change: And we'll see as we talked about forefoot growth from a smaller base.
Speaker Change: in that business. The International Business will continue to see growth and the Dolly Parton program will see growth over that. In terms of the total business as our practice, we will give guidance.
with R Q1 of the books.
Speaker Change: Great. And then we saw the Dalai, the Dalai part in Dalai General press release on, I think it was out Monday, it said product available in their stores beginning March 1, then a summer collection in May, then an expected holiday collection.
Speaker Change: Is that March 1 timing and why I'm with what you previously expected, and are these summer and holiday collections incremental to what you guys previously communicated, or was that all along the part of the plan?
Speaker Change: Well, it continues to grow, Brian . So set another way when we did our initial budget last year of Wally Parton, it was lower than what we expected to do and what we, you know, we flex every month, right? What we know?
Speaker Change: So, as we've worked with them, it continues to expand. And as I said, the good news is, and it's put in, they put in these tables if you've ever been to Dollar General, so as opposed to on shelf, and that's what the Dolly program does, and they've been putting in more.
This quarter, again, had sales velocity.
Speaker Change: Better than everyone had hoped. And in line with last year, which is very, very strong, which continues to see traction there. We are also looking to roll
Speaker Change: The Dolly, and we'll be rolling that out to other retailers and have commitments to do that, but also with Dollar General, just with themselves, we are in discussions with them to be selling beyond Dolly part.
Speaker Change: That would be all incremental. That's not something we have in our plan or full pass at this point.
Speaker Change: Great, and then one more on the top line, you know, sales into the year flatters. Can you get like you guys own a bunch of brands? Can you give us an idea of what brands kind of outperform what which one grew last year? Maybe which ones are lagging and maybe we're for the ones that are lagging? Like how do you kind of get those those growing again?
Thank you.
Speaker Change: Yeah, I'm tricky one. It's so many different brands across categories, but, you know, if you look at this far, we're a group.
and Father Ware's Rose.
Speaker Change: Unknown Speaker I'm going to go ahead and close out the webinar. Thank you.
Speaker Change: was driven a lot, not a lot, but was driven, was bullied, I should say, by the growth in cartlary where we had tremendous success in the business, gained a lot of market share, and if you look at just cartlary in general, we grew.
Substance you on a year-over-year basis.
You know, but what we do, did she greet both in Makassah and Farberware?
Speaker Change: We saw a decline a little bit in Taylor and Falsgraf.
Speaker Change: Paul's graph for us isn't an invest area. So, you know, as we looked at the portfolio over the last several years, discussed a lot about reposition, and that's a good example of, you know, somewhere where we haven't put emphasis, and we put more emphasis on the cost, so that's why you're seeing growth in one versus the other.
You know, Taylor.
Speaker Change: In general, just kind of hit a wall. We've had a lot of growth over a few years. One thing though that we're launching this year, two things I should say, which we think will hopefully reverse that trend is a more smart, sweet branded, excuse me, family of products.
for our Taylor family of offerings.
and also a new offering.
Speaker Change: Inteller that allow us to get more market space because it's slightly different branded so it's bi-tailor to allow us to be sold in different places, particularly of our major retailers and that will propel growth within Taylor.
Speaker Change: We also rabbit decline, but rabbit decline, face the off of a banner year.
Speaker Change: And in one particular in the club channel, you know, they took a little bit of a breather that sounds very well there. So that will rebound. So hopefully that gives you some flavor of the different brands.
Speaker Change: Yeah, very helpful. Thanks a lot guys. Best of luck this year.
Thank you, bye.
Speaker Change: Thank you. Our next question is from Christina Zoo with DA Davidson. Please proceed with your question.
Christina Zhu: Hi, this is Christina on For Linda Bolton Weiser, so just to follow up on the tariff situation.
Christina Zhu: So I think you mentioned before that the biggest skew volume product is now moved to Cambodia and Trump was saying to apply reciprocal tariffs on the countries that have posed tariffs on the US product. So I was wondering if you could remind us.
Christina Zhu: Do you have any idea if Cambodia currently has any kind of like tariff imposed on the US products?
Christina Zhu: It does not, but look, there's no visibility, it may change tomorrow, it may change completely differently the day after.
there could be universal tariffs. [inaudible]
Christina Zhu: There's a lot of moving parts and we're just going to have to react and manage [inaudible]
Christina Zhu: And we've moved to multiple. We are a moving product to many geographies and Cambodia being run. It'll ramp up and we'll have to react to any changes to the power of regime and the trade wars as they unfold.
Speaker Change: Okay, so, and I think Mexico was recently tariff, like, can you remind us your exposure over there?
Speaker Change: Well, you know, we had bought a Makila door facility in Mexico that we have now ramped up to full production, so we're starting to get the benefit of that.
with a 25% tariff on China, there's a noticeable...
Speaker Change: for the Mexican facility. If they put 25% tariffs on product coming out of Mexico, that benefit
Speaker Change: But now, tariffs on related products from China are up to 45% and even 70% depending on the item, so that they're still benefit from the Mexico facility versus what we paid today.
Speaker Change: It was, you guys were saying the Dolly partnership and could exceed so exceed $10 million even with the, with part of the shipments shipping, shipping to 1st quarter 25, 424, I think there were
Speaker Change: 7 million ship. So can you unpack a little to us to like why that the shortage?
Speaker Change: Yeah, sure. So we've expected around $10 general made a decision to...
Speaker Change: because of issues they were having to push. Some of that was that was scheduled to ship.
Speaker Change: in over the third and fourth quarters. Push that into the first quarter, which we're now shipping. And that was four million dollars, so that four million dollars were capturing just we didn't capture it last year. So that would have brought our initial ten down to.
Six.
Speaker Change: And we shipped seven just because the business performed better. And then we had anticipated and that was the difference between the six and seven. So it actually went up and four that was off of our initial.
Speaker Change: I believe it's just something that moved into the first quarter. Of course, the 7 million, as you know, was 100% incremental because it was all new bits.
Speaker Change: Okay, and I think you mentioned in the call that you observed, we could consume our sentiments, so I was just wondering how much of a pricing power do you think that you have, is there are going to be like additional tariffs on your products?
So...
The Magnitude of the Tararots
Speaker Change: In our view, make it mandatory that everyone, that you can't not pass it through.
Speaker Change: So what you're gonna see is, and if you look at the major retailers, they've already said, look, expect higher prices.
It's just a reality unless the towers get reversed, so it's...
Speaker Change: Something that will absolutely happen that price will get passed through and then price is going to be raised on shelf.
Speaker Change: The bigger question is, you know, in a consumer-driven economy, what does that do to become?
Speaker Change: But, you know, we will be passing through prices, you know, it'll take time, which is why we built the buffer, but it's because we wanted to
Speaker Change: Protect ourselves against the time because you just don't, you know, when you work with retail environment, it's just like we don't call them up and say, hey, prices are, you know, up 10%, we, you know, it takes time to implement that and that'll be over the next couple of months.
Okay, thank you.
Thank you. This concludes our question and answer session.
Speaker Change: Well, thanks, everyone, for the time, the increase. Sorry. Thank you, everyone, for the time today and the interest in Lifetime Brands and we look forward to the dialogue continuing
Speaker Change: This concludes today's conference. We thank you for your participation. You may disconnect your lines at this time.