LIFETIME BRANDS, INC 10-Q

Item 1. Financial Statements LIFETIME BRANDS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share data) March 31, 2026 December 31, 2025 (unaudited) ASSETS CURRENT ASSETS Cash and cash equivalents $ 13,864 $ 4,267 Accounts receivable, less allowances of $ 11,042 at March 31, 2026 and $ 11,970 at December 31, 2025 114,949 161,861 Inventory 190,299 194,046 Prepaid expenses and other current assets 11,704 12,147 Income taxes receivable 3,384 1,572 TOTAL CURRENT ASSETS 334,200 373,893 PROPERTY AND EQUIPMENT, net 18,260 15,441 OPERATING LEASE RIGHT-OF-USE ASSETS 45,008 48,506 INTANGIBLE ASSETS, net 128,557 132,922 OTHER ASSETS 1,836 1,793 TOTAL ASSETS $ 527,861 $ 572,555 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES Current maturity of term loan $ 5,057 $ 5,022 Accounts payable 26,710 45,844 Accrued expenses 67,104 64,294 Current portion of operating lease liabilities 15,237 16,143 TOTAL CURRENT LIABILITIES 114,108 131,303 OTHER LONG-TERM LIABILITIES 13,552 14,261 INCOME TAXES PAYABLE, LONG-TERM 686 686 OPERATING LEASE LIABILITIES 39,239 42,442 DEFERRED INCOME TAXES 1,519 1,554 REVOLVING CREDIT FACILITY 36,611 54,105 TERM LOAN 124,650 125,927 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, 2026 and December 31, 2025; shares issued and outstanding: 22,855,008 at March 31, 2026 and 22,654,207 at December 31, 2025 229 227 Paid-in capital 284,305 283,449 Accumulated deficit ( 69,132 ) ( 63,354 ) Accumulated other comprehensive loss ( 17,906 ) ( 18,045 ) TOTAL STOCKHOLDERS’ EQUITY 197,496 202,277 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 527,861 $ 572,555 See accompanying notes to unaudited condensed consolidated financial statements. - 2 - Table of Contents LIFETIME BRANDS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Three Months Ended March 31, 2026 2025 Net sales $ 143,508 $ 140,085 Cost of sales 89,339 89,448 Gross margin 54,169 50,637 Distribution expenses 17,583 18,070 Selling, general and administrative expenses 36,786 31,468 Restructuring expenses 2,030 — (Loss) income from operations ( 2,230 ) 1,099 Interest expense ( 4,512 ) ( 4,915 ) Mark to market gain (loss) on interest rate derivatives 294 ( 527 ) Loss before income taxes ( 6,448 ) ( 4,343 ) Income tax benefit 1,676 142 NET LOSS $ ( 4,772 ) $ ( 4,201 ) BASIC LOSS PER COMMON SHARE $ ( 0.22 ) $ ( 0.19 ) DILUTED LOSS PER COMMON SHARE $ ( 0.22 ) $ ( 0.19 ) See accompanying notes to unaudited condensed consolidated financial statements. - 3 - Table of Contents LIFETIME BRANDS, INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands) (unaudited) Three Months Ended March 31, 2026 2025 Net loss $ ( 4,772 ) $ ( 4,201 ) Other comprehensive income, net of taxes: Net change in translation adjustment 65 417 Net change in cash flow hedges 68 ( 129 ) Effect of retirement benefit obligations 6 4 Other comprehensive income, net of taxes 139 292 Comprehensive loss $ ( 4,633 ) $ ( 3,909 ) See accompanying notes to unaudited condensed consolidated financial statements. - 4 - Table of Contents 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, 2025 22,654 $ 227 $ 283,449 $ ( 63,354 ) $ ( 18,045 ) $ 202,277 Net loss — — — ( 4,772 ) — ( 4,772 ) Other comprehensive income, net of taxes — — — — 139 139 Net issuance of restricted shares granted to employees 259 3 ( 3 ) — — — Stock compensation expense — — 1,041 — — 1,041 Shares effectively repurchased for required employee withholding taxes ( 58 ) ( 1 ) ( 182 ) — — ( 183 ) Dividends (1) — — — ( 1,006 ) — ( 1,006 ) BALANCE AT MARCH 31, 2026 22,855 $ 229 $ 284,305 $ ( 69,132 ) $ ( 17,906 ) $ 197,496 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 (1) Cash dividends declared per share of common stock were $ 0.0425 and $ 0.0425 in the three months ended March 31, 2026 and 2025, respectively. See accompanying notes to unaudited condensed consolidated financial statements. - 5 - Table of Contents LIFETIME BRANDS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Three Months Ended March 31, 2026 2025 OPERATING ACTIVITIES Net loss $ ( 4,772 ) $ ( 4,201 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 5,282 5,698 Amortization of financing costs 669 704 Mark to market (gain) loss on interest rate derivatives ( 294 ) 527 Operating leases, net ( 593 ) ( 556 ) Provision for doubtful accounts 8 704 Stock compensation expense 1,043 1,062 Changes in operating assets and liabilities Accounts receivable 46,774 50,832 Inventory 3,282 ( 6,324 ) Prepaid expenses, other current assets and other assets 324 ( 3,345 ) Accounts payable, accrued expenses and other liabilities ( 16,160 ) ( 28,038 ) Income taxes receivable ( 1,812 ) — Income taxes payable 8 ( 352 ) NET CASH PROVIDED BY OPERATING ACTIVITIES 33,759 16,711 INVESTING ACTIVITIES Purchases of property and equipment ( 3,843 ) ( 1,573 ) NET CASH USED IN INVESTING ACTIVITIES ( 3,843 ) ( 1,573 ) FINANCING ACTIVITIES Proceeds from revolving credit facility 48,669 88,894 Repayments of revolving credit facility ( 65,875 ) ( 93,363 ) Repayments of term loan ( 1,875 ) ( 1,875 ) Payments for finance lease obligations ( 12 ) ( 11 ) Payments of tax withholding for stock based compensation ( 183 ) ( 416 ) Cash dividends paid ( 1,015 ) ( 996 ) NET CASH USED IN FINANCING ACTIVITIES ( 20,291 ) ( 7,767 ) Effect of foreign exchange on cash ( 28 ) 75 INCREASE IN CASH AND CASH EQUIVALENTS 9,597 7,446 Cash and cash equivalents at beginning of period 4,267 2,929 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 13,864 $ 10,375 See accompanying notes to unaudited condensed consolidated financial statements. - 6 - LIFETIME BRANDS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2026 (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 home solution 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 to 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 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, 2025. Operating results for the three months ended March 31, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026. The Company’s business and working capital needs are seasonal, with a majority of sales occurring in the third and fourth quarters. In 2025 and 2024, net sales for the third and fourth quarters accounted for 58 % of total annual net sales, for both periods. In anticipation of the pre-holiday shipping season, inventory levels increase primarily in the June through October time period. 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 consumers. Wholesale sales and retail sales are primarily recognized at the point in time when 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. - 7 - Table of Contents LIFETIME BRANDS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2026 (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, 2026 and March 31, 2025. At March 31, 2026, $ 16.3 million of accounts receivable 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 costs of completion, disposal and transportation. The components of inventory were as follows (in thousands): March 31, 2026 December 31, 2025 Finished goods $ 182,130 $ 185,157 Work in process 143 20 Raw materials 8,026 8,869 Total $ 190,299 $ 194,046 - 8 - Table of Contents LIFETIME BRANDS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2026 (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 5 — 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 The Company had no recorded goodwill as of March 31, 2026 and December 31, 2025. 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. See NOTE 4 — 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 incremental borrowing rate represents the rate required to borrow funds over a similar term to purchase the leased asset and is based on an unsecured borrowing rate and risk-adjusted to approximate a collateralized rate at the commencement date of the lease. 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. - 9 - Table of Contents LIFETIME BRANDS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2026 (unaudited) For certain equipment leases, the Company applies a portfolio approach to effectively account for its 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. Restructuring Expenses Restructuring costs are recognized at fair value when the related liability is incurred. For severance and other employee-related costs, a liability is generally incurred on the date the restructuring plan is communicated to affected employees. In certain situations, severance or other employee-related benefits require employees to render service over a specified period in order to be eligible to receive the benefit, and that service period extends beyond a minimum retention period. In these circumstances, the fair value of the termination benefits is recognized ratably over the required service period, beginning on the communication date. The Company recorded restructuring expenses for the three months ended March 31, 2026 related to the following activities: Three Months Ended March 31, 2026 (in thousands) U.S. segment Distribution facility relocation $ 1,201 Sterling flatware manufacturing operations 653 Total U.S. segment 1,854 International segment Project Concord 176 Total restructuring expenses $ 2,030 Distribution Facility Relocation In January 2025, the Company announced the relocation of the Company’s East Coast distribution operations currently located in Robbinsville, NJ (the “Robbinsville Facility”) to Hagerstown, Maryland (the “Hagerstown Facility”). As a result of the relocation the Company will exit the Robbinsville Facility. During the three months ended March 31, 2026, the Company incurred $ 1.2 million related to employee severance expenses. The Company expects to complete the exit of the Robbinsville Facility by the third quarter of 2026 and expects additional exit costs of approximately $ 1.8 million related to employee severance and $ 3.0 million for other related costs in the second and third quarter of 2026. Sterling Flatware Manufacturing Operations In March 2026, the Company approved a plan to close its manufacturing operations of its sterling flatware products. During the three months ended March 31, 2026, the Company incurred $ 0.1 million of employee severance expenses and $ 0.6 million of other costs which consisted of an inventory provision on remaining raw materials inventory. The Company expects to complete the closure of this operation by the end of the second quarter of 2026 and expects additional costs to be less than $ 0.1 million related to employee severance. Project Concord The Company's International segment incurred severance expenses associated with the reorganization of the International segment's workforce. The reorganization is related to Project Concord and primarily affects the structure of the International segment's merchandising and sales workforce. During the three months ended March 31, 2026, the Company incurred $ 0.2 million of employee severance expenses. The Company expects that restructuring activities related to this project to be - 10 - Table of Contents LIFETIME BRANDS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2026 (unaudited) completed by the end of the second quarter of 2026 and expects to incur additional costs of $ 0.2 million related to employee severance. As of March 31, 2026, accrued restructuring liability was $ 1.5 million, which included $ 1.2 million related to distribution facility relocation expenses, $ 0.1 million related to sterling silver manufacturing operations expenses, and $ 0.2 million related to Project concord. The accrued restructuring is expected to be paid by the end of 2026. New accounting pronouncements Updates not listed below were assessed and either determined not to be applicable or are expected to have a minimal effect on the Company’s financial position, results of operations, and 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 for the three months ended March 31, 2026 and $ 0.7 million for the three months ended March 31, 2025. 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 sale s. The Company incurs certain direct incremental costs to obtain contracts with customers, such as sales-related co mmissions, 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. - 11 - Table of Contents LIFETIME BRANDS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2026 (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, 2026 and 2025 (in thousands): Three Months Ended March 31, 2026 2025 U.S. segment Kitchenware $ 78,447 $ 79,521 Tableware 25,928 27,577 Home Solutions 26,332 21,412 Total U.S. segment 130,707 128,510 International segment 12,801 11,575 Total net sales $ 143,508 $ 140,085 United States $ 125,794 $ 124,205 United Kingdom 7,797 6,954 Rest of World 9,917 8,926 Total net sales $ 143,508 $ 140,085 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, 2026 and 2025 were as follows (in thousands): Three Months Ended March 31, 2026 2025 Operating lease expenses (1) : Fixed lease expense $ 4,305 $ 4,258 Variable lease expense 1,634 1,753 Total $ 5,939 $ 6,011 (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, 2026 and 2025 were as follows (in thousands): Three Months Ended March 31, 2026 2025 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 4,898 $ 4,814 Three Months Ended March 31, 2026 2025 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 152 $ — - 12 - Table of Contents LIFETIME BRANDS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2026 (unaudited) The aggregate future lease payments for operating leases as of March 31, 2026 were as follows (in thousands): Operating 2026 (excluding the three months ended March 31, 2026) $ 14,447 2027 15,116 2028 13,094 2029 6,796 2030 4,966 2031 3,083 Thereafter 6,026 Total lease payments 63,528 Less: Interest ( 9,052 ) Present value of lease payments $ 54,476 Average lease terms and discount rates were as follows: March 31, 2026 Operating leases: Weighted-average remaining lease term (years) 4.5 Weighted-average discount rate 6.7 % On January 23, 2025, the Company entered into a lease agreement for a new distribution center in Hagerstown, Maryland (“Hagerstown Facility”). The lease term commenced on April 30, 2026, following the satisfaction of all commencement conditions. The term of the lease is 180 months following the commencement date. 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 of the lease term at the applicable annual base rent for a total base rent abatement of $ 7.2 million. The lease agreement also includes a total tenant improvement allowance of approximately $ 5.1 million. NOTE 4 — INTANGIBLE ASSETS Intangible assets consisted of the following as of March 31, 2026 and December 31, 2025 (in thousands): March 31, 2026 December 31, 2025 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Goodwill (1) $ — $ — $ — $ — $ — $ — Finite-lived intangible assets: Licenses 15,847 ( 13,135 ) 2,712 15,847 ( 13,021 ) 2,826 Trade names 104,576 ( 37,007 ) 67,569 104,617 ( 35,376 ) 69,241 Customer relationships 143,158 ( 85,807 ) 57,351 143,159 ( 83,347 ) 59,812 Other 5,887 ( 4,962 ) 925 5,894 ( 4,851 ) 1,043 Total $ 269,468 $ ( 140,911 ) $ 128,557 $ 269,517 $ ( 136,595 ) $ 132,922 (1) The net value at March 31, 2026 and December 31, 2025 reflect a reduction of $ 113.0 million impairment charges within U.S. segment and $ 11.9 million impairment charges within International segment. - 13 - Table of Contents LIFETIME BRANDS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2026 (unaudited) NOTE 5 — 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. The ABL Agreement is subject to an earlier springing maturity date of May 28, 2027, 90 days prior to the Term Loan maturity date of August 26, 2027, if the Company’s Term Loan has not been repaid or refinanced by such date. 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 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. Under 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 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 Term 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. As of March 31, 2026 and December 31, 2025, the total availability under the ABL Agreement were as follows (in thousands): March 31, 2026 December 31, 2025 Maximum aggregate principal allowed $ 149,735 $ 185,588 Outstanding borrowings under the ABL Agreement ( 36,611 ) ( 54,105 ) Standby letters of credit ( 13,764 ) ( 11,564 ) Total availability under the ABL Agreement $ 99,360 $ 119,919 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, 2026, the availability under the ABL Agreement, as limited by the Term Loan financial covenant, was $ 80.0 million. - 14 - Table of Contents LIFETIME BRANDS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2026 (unaudited) 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, 2026 December 31, 2025 Current portion of Term Loan: Term Loan payment $ 7,500 $ 7,500 Estimated unamortized debt issuance costs ( 2,443 ) ( 2,478 ) Total Current portion of Term Loan $ 5,057 $ 5,022 Non-current portion of Term Loan: Term Loan, net of current portion $ 125,625 $ 127,500 Estimated unamortized debt issuance costs ( 975 ) ( 1,573 ) Total Non-current portion of Term Loan $ 124,650 $ 125,927 As of March 31, 2026 the Company estimates that no excess cash flow payment will be due for 2026. For the year ended December 31, 2025, there was no excess cash flow payment 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. 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, 2026 was between 3.33 % and 7.13 %. The Company paid a commitment fee of 0.25 % on the unused portion of the ABL Agreement during the three months ended March 31, 2026. 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, 2026 was 9.29 %. - 15 - Table of Contents LIFETIME BRANDS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2026 (unaudited) 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, 2026. 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 6 — DERIVATIVES The Company’s risk management strategy includes the use of 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. 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 expiring 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, 2026. 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 of less than 18 months. The aggregate gross notional value of foreign exchange contracts at March 31, 2026 was zero . - 16 - Table of Contents LIFETIME BRANDS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2026 (unaudited) Derivatives not designated as hedging instruments Balance Sheet Location March 31, 2026 December 31, 2025 Interest rate swaps Other assets $ 79 $ — Other long-term liabilities 212 428 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 2026 2025 Foreign exchange contracts $ 68 $ ( 129 ) 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, 2026 and 2025, the Company reclassified approximately $ 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, 2026, the estimated amount of existing net losses expected to be reclassified into earnings within the next 12 months was less than $ 0.1 million. Interest and mark to market gain (loss) 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) 2026 2025 Interest rate swaps Mark to market gain (loss) on interest rate derivatives $ 294 $ ( 527 ) Interest expense ( 16 ) 168 $ 278 $ ( 359 ) - 17 - Table of Contents LIFETIME BRANDS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2026 (unaudited) NOTE 7 — STOCK COMPENSATION As of March 31, 2026, there were 543,284 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, 2026 is as follows: Options Weighted- average exercise price Weighted- average remaining contractual life (years) Aggregate intrinsic value (in thousands) Options outstanding, January 1, 2026 827,000 $ 11.07 Grants — — Options outstanding, March 31, 2026 (1) 827,000 11.07 3.8 $ 27 Options exercisable, March 31, 2026 733,625 $ 11.51 3.2 $ 7 Total unrecognized stock option expense remaining (in thousands) $ 226 Weighted-average years expected to be recognized over 1.5 (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, 2026. 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, 2026 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, 2026 is as follows: Restricted Shares Weighted- average grant date fair value Non-vested restricted shares, January 1, 2026 885,925 $ 6.06 Grants 259,731 3.07 Vested ( 236,984 ) 7.81 Non-vested restricted shares, March 31, 2026 908,672 $ 4.75 Total unrecognized compensation expense remaining (in thousands) $ 3,490 Weighted-average years expected to be recognized over 1.8 The total fair value of restricted stock that vested during the three months ended March 31, 2026 was $ 0.7 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 at the end of the performance period, based on the attainment of specified performance goals at the time of grant, 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. - 18 - Table of Contents LIFETIME BRANDS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2026 (unaudited) A summary of the Company’s performance-based award activity and related information for the three months ended March 31, 2026 is as follows: Performance- based stock awards (1) Weighted- average grant date fair value Non-vested performance-based awards, January 1, 2026 730,797 $ 6.70 Grants 259,731 3.07 Forfeitures (2) ( 186,181 ) 5.92 Non-vested performance-based awards, March 31, 2026 804,347 $ 5.70 Total unrecognized compensation expense remaining (in thousands) $ 2,189 Weighted-average years expected to be recognized over 1.9 (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 2023 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 2026 2025 Equity based stock option expense $ 43 $ 70 Restricted and performance-based stock awards expense 998 993 Stock compensation expense for equity based awards 1,041 1,063 Liability based stock option expense 2 ( 1 ) Total Stock Compensation Expense $ 1,043 $ 1,062 NOTE 8 — 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, 2026 and 2025 are as follows: Three Months Ended March 31, 2026 2025 (in thousands, except per share amounts) Net loss – Basic and Diluted $ ( 4,772 ) $ ( 4,201 ) Weighted-average shares outstanding – Basic 21,818 21,592 Effect of dilutive securities: Stock options and other stock awards — — Weighted-average shares outstanding – Diluted 21,818 21,592 Basic loss per common share $ ( 0.22 ) $ ( 0.19 ) Diluted loss per common share $ ( 0.22 ) $ ( 0.19 ) Antidilutive Securities (1) 1,714 1,417 (1) Stock options and other stock awards that have been excluded from the denominator as their inclusion would have been anti-dilutive. - 19 - Table of Contents LIFETIME BRANDS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2026 (unaudited) NOTE 9— INCOME TAXES Income tax benefit of $ 1.7 million and $ 0.1 million for the three months ended March 31, 2026 and 2025, respectively, represent taxes on both U.S. and foreign earnings at a combined effective income tax rate of 26.0 % and 3.3 %, respectively. The effective tax rate for the three months ended March 31, 2026 differs from the federal statutory income tax rate of 21.0% primarily due to state and local tax expense, the impact of non-deductible expenses, and foreign losses for which no tax benefit is recognized as such amounts are fully offset with a valuation allowance, partially offset by a benefit for federal credits. 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 Company has identified the following jurisdictions as “major” tax jurisdictions: U.S. Federal, California, 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, 2026 and March 31, 2025. The One Big Beautiful Bill Act (“OBBBA”) was enacted on July 4, 2025 with various provisions impacting the Company, none of which are material to the 2026 financial statements. - 20 - Table of Contents LIFETIME BRANDS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2026 (unaudited) NOTE 10 – 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 operating 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 (loss) 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, 2026 2025 Segment Performance Measures: (in thousands) Net sales: U.S. $ 130,707 $ 128,510 International 12,801 11,575 Total net sales $ 143,508 $ 140,085 Gross Margin: U.S. $ 49,449 $ 46,564 International 4,720 4,073 Total gross margin $ 54,169 $ 50,637 (Loss) income from operations U.S. $ 5,178 $ 1,898 International ( 2,497 ) ( 2,952 ) Unallocated corporate (expenses) income (1) ( 4,911 ) 2,153 (Loss) income from operations $ ( 2,230 ) $ 1,099 (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 11 — CONTINGENCIES - 21 - Table of Contents LIFETIME BRANDS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2026 (unaudited) Three Months Ended March 31, 2026 2025 Supplemental information for significant segment expenses: (in thousands) Cost of sales: U.S. $ 81,258 $ 81,946 International 8,081 7,502 Total cost of sales $ 89,339 $ 89,448 Freight-out expenses: U.S. $ 3,555 $ 3,279 International 709 545 Total freight-out expenses $ 4,264 $ 3,824 Warehouse expenses: U.S. $ 10,653 $ 11,512 International 2,666 2,734 Total warehouse expenses $ 13,319 $ 14,246 Selling, general and administrative expenses: U.S. $ 28,209 $ 29,875 International 3,666 3,746 Unallocated corporate expenses (income) 4,911 ( 2,153 ) Total selling, general and administrative expenses $ 36,786 $ 31,468 Restructuring expenses: U.S. $ 1,854 $ — International 176 — Total other expenses $ 2,030 $ — Three Months Ended March 31, 2026 2025 (in thousands) Depreciation and amortization: U.S. $ 4,944 $ 5,379 International 338 319 Total depreciation and amortization $ 5,282 $ 5,698 Capital expenditures: U.S. $ 3,544 $ 1,567 International 299 6 Total capital expenditures $ 3,843 $ 1,573 - 22 - Table of Contents LIFETIME BRANDS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2026 (unaudited) March 31, 2026 December 31, 2025 (in thousands) Assets U.S. $ 436,435 $ 482,467 International 74,178 84,249 Unallocated corporate 17,248 5,839 Total Assets $ 527,861 $ 572,555 - 23 - Table of Contents LIFETIME BRANDS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2026 (unaudited) NOTE 11 — 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. In October 2025, the U.S. government requested that the parties extend the tolling agreement until November 10, 2026. WSPR agreed to the extension. 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 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 - 24 - Table of Contents LIFETIME BRANDS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2026 (unaudited) 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 on December 14, 2023, thereby effectuating the Decree. On January 10, 2024, the 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. WSPR submitted the final draft Remedial Design Work Plan, Supplemental Pre-Design Investigation Work Plan, and Pilot Study Work Plan to the EPA on May 30, 2025, and awaits the EPA’s approval on those documents to move forward with the remediation. The Company reserved $ 5.6 million to cover probable and estimable liabilities with respect to the above remedial design and remedial action for OU-1. 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, 2026, the remaining probable and reasonably estimable liability related to the above remedial design and remedial action for OU-1 is $ 5.3 million. Legal Settlement Gain In 2015, Taylor Precision Products, Inc. (“Taylor” and/or the “Plaintiff”), which was 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 such 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. - 25 - Table of Contents LIFETIME BRANDS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2026 (unaudited) NOTE 12 — OTHER Cash dividends Dividends declared in the three months ended March 31, 2026 were as follows: Dividend per share Date declared Date of record Payment date $ 0.0425 3/9/2026 5/1/2026 5/15/2026 During the three months ended March 31, 2026, the Company paid dividends of $ 1.0 million. This included payments made on February 13, 2026 of $ 0.9 million to stockholders of record on January 30, 2026 and payments of $ 0.1 million for dividends payable upon the vesting of restricted shares. In the three months ended March 31, 2026, the Company reduced retained earnings for the accrual of $ 1.0 million relating to the dividend payable on May 15, 2026. Stock repurchase program 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 $ 10.0 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, 2026. As of March 31, 2026, 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, 2026 2025 (in thousands) Supplemental disclosure of cash flow information: Cash paid for interest $ 4,049 $ 4,286 Cash paid for taxes, net of refunds 128 211 - 26 - Table of Contents LIFETIME BRANDS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2026 (unaudited) Components of accumulated other comprehensive loss, net Three Months Ended March 31, 2026 2025 (in thousands) Accumulated translation adjustment: Balance at beginning of period $ ( 17,698 ) $ ( 18,384 ) Translation adjustment during period 65 417 Balance at end of period $ ( 17,633 ) $ ( 17,967 ) Accumulated deferred gains on cash flow hedges: Balance at beginning of period $ ( 44 ) $ 247 Change in unrealized gains (losses) — ( 192 ) Amounts reclassified from accumulated other comprehensive loss: Settlement of cash flow hedge (1) 68 63 Net change in cash flow hedges, net of taxes of $ 0 , $ 0 , 68 ( 129 ) Balance at end of period $ 24 $ 118 Accumulated effect of retirement benefit obligations: Balance at beginning of period $ ( 303 ) $ ( 178 ) Amounts reclassified from accumulated other comprehensive loss: (2) Amortization of actuarial loss, net of taxes of $( 2 ), $( 1 ) 6 4 Balance at end of period $ ( 297 ) $ ( 174 ) Total accumulated other comprehensive loss at end of period $ ( 17,906 ) $ ( 18,023 ) (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. - 27 - Table of Contents