# EDGAR Filing Document

**Accession Number:** 0000874396
**File Stem:** 0000874396-26-000008
**Filing Date:** 2026-3
**Character Count:** 425559
**Document Hash:** 5f7ea3c9deed3f0855c0a89d42739fd7
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000874396-26-000008.hdr.sgml**: 20260312

**ACCESSION NUMBER**: 0000874396-26-000008

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 117

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260312

**DATE AS OF CHANGE**: 20260312

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** LIFETIME BRANDS, INC
- **CENTRAL INDEX KEY:** 0000874396
- **STANDARD INDUSTRIAL CLASSIFICATION:** CUTLERY, HANDTOOLS & GENERAL HARDWARE [3420]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 112682486
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-19254
- **FILM NUMBER:** 26749094

**BUSINESS ADDRESS:**
- **STREET 1:** 1000 STEWART AVENUE
- **CITY:** GARDEN CITY
- **STATE:** NY
- **ZIP:** 11530
- **BUSINESS PHONE:** 5166836000

**MAIL ADDRESS:**
- **STREET 1:** 1000 STEWART AVENUE
- **STREET 2:** 1000 STEWART AVENUE
- **CITY:** GARDEN CITY
- **STATE:** NY
- **ZIP:** 11530

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** LIFETIME HOAN CORP
- **DATE OF NAME CHANGE:** 19930328

?xml version='1.0' encoding='ASCII'? lcut-20251231

<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_7)</u>

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**______________________________________________**

**FORM 10-K**

**______________________________________________**

☒ **ANNUAL REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the fiscal year ended: December 31, 2025**

**or**

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

**For the transition period from <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>to <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**Commission file number: 0-19254**

**______________________________________________**

**LIFETIME BRANDS, INC.**

**(Exact name of registrant as specified in its charter)**

**______________________________________________**

---

| | |
|:---|:---|
| **Delaware** | **11-2682486** |
| **(State or other jurisdiction of<br>incorporation or organization)** | **(I.R.S. Employer<br>Identification No.)** |

---

**1000 Stewart Avenue, Garden City, New York 11530**

**(Address of principal executive offices, including Zip Code)**

**(516) 683-6000**

**(Registrant's telephone number, including area code)**

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

---

| | | |
|:---|:---|:---|
| **<u>Common Stock, $.01 par value</u>** | **<u>LCUT</u>** | **<u>The Nasdaq Global Select Market</u>** |
| **(Title of each class)** | **(Trading Symbol)** | **(Name of each exchange on which registered)** |

---

**Securities registered pursuant to Section 12(g) of the Act: None**

**______________________________________________**

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐&nbsp;&nbsp;&nbsp;&nbsp;No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.&nbsp;&nbsp;&nbsp;&nbsp;Yes ☐&nbsp;&nbsp;&nbsp;&nbsp;No ☒

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

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

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

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☒ |
| Non-accelerated filer | ☐ | Smaller reporting company | ☒ |
| | | Emerging growth company | ☐ |

---

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

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

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

The aggregate market value of 12,903,955 shares of the voting common equity held by non-affiliates of the registrant as of June 30, 2025, the last day of the registrant's most recently completed second fiscal quarter, was approximately $65,810,171. Directors, executive officers, and trusts controlled by said individuals are considered affiliates for the purpose of this calculation and may not necessarily be considered affiliates for any other purpose.

The number of shares of common stock, par value $0.01 per share, outstanding as of February 28, 2026, was 22,654,207.

**DOCUMENTS INCORPORATED BY REFERENCE**

Parts of the registrant's definitive proxy statement for the 2026 Annual Meeting of Stockholders to be filed pursuant to Regulation 14A under the Securities Exchange Act of 1934 are incorporated by reference in Part III of this Annual Report.

------

<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_7)</u>

**LIFETIME BRANDS, INC.**

**FORM 10-K**

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| **<u>[PART I](#i54ce78ac179642c5b4be2feadb06906c_19)</u>** | | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Item 1.](#i54ce78ac179642c5b4be2feadb06906c_22) | <u>[Business](#i54ce78ac179642c5b4be2feadb06906c_22)</u> | [5](#i54ce78ac179642c5b4be2feadb06906c_22) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Item 1A.](#i54ce78ac179642c5b4be2feadb06906c_25) | <u>[Risk Factors](#i54ce78ac179642c5b4be2feadb06906c_25)</u> | [9](#i54ce78ac179642c5b4be2feadb06906c_25) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Item 1B.](#i54ce78ac179642c5b4be2feadb06906c_28) | <u>[Unresolved Staff Comments](#i54ce78ac179642c5b4be2feadb06906c_28)</u> | [25](#i54ce78ac179642c5b4be2feadb06906c_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Item 1C.](#i54ce78ac179642c5b4be2feadb06906c_31) | <u>[Cybersecurity](#i54ce78ac179642c5b4be2feadb06906c_31)</u> | [25](#i54ce78ac179642c5b4be2feadb06906c_31) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Item 2.](#i54ce78ac179642c5b4be2feadb06906c_34) | <u>[Properties](#i54ce78ac179642c5b4be2feadb06906c_34)</u> | [26](#i54ce78ac179642c5b4be2feadb06906c_34) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Item 3.](#i54ce78ac179642c5b4be2feadb06906c_37) | <u>[Legal Proceedings](#i54ce78ac179642c5b4be2feadb06906c_37)</u> | [27](#i54ce78ac179642c5b4be2feadb06906c_37) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Item 4.](#i54ce78ac179642c5b4be2feadb06906c_40) | <u>[Mine Safety Disclosures](#i54ce78ac179642c5b4be2feadb06906c_40)</u> | [27](#i54ce78ac179642c5b4be2feadb06906c_40) |
| **<u>[PART II](#i54ce78ac179642c5b4be2feadb06906c_43)</u>** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Item 5.](#i54ce78ac179642c5b4be2feadb06906c_46) | <u>[Market For Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](#i54ce78ac179642c5b4be2feadb06906c_46)</u> | [28](#i54ce78ac179642c5b4be2feadb06906c_46) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Item 6.](#i54ce78ac179642c5b4be2feadb06906c_52) | <u>[\[Reserved\]](#i54ce78ac179642c5b4be2feadb06906c_52)</u> | [29](#i54ce78ac179642c5b4be2feadb06906c_52) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Item 7.](#i54ce78ac179642c5b4be2feadb06906c_55) | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#i54ce78ac179642c5b4be2feadb06906c_55)</u> | [30](#i54ce78ac179642c5b4be2feadb06906c_55) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Item 7A.](#i54ce78ac179642c5b4be2feadb06906c_127) | <u>[Quantitative and Qualitative Disclosures About Market Risk](#i54ce78ac179642c5b4be2feadb06906c_127)</u> | [44](#i54ce78ac179642c5b4be2feadb06906c_127) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Item 8.](#i54ce78ac179642c5b4be2feadb06906c_130) | <u>[Financial Statements and Supplementary Data](#i54ce78ac179642c5b4be2feadb06906c_130)</u> | [45](#i54ce78ac179642c5b4be2feadb06906c_130) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Item 9.](#i54ce78ac179642c5b4be2feadb06906c_133) | <u>[Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](#i54ce78ac179642c5b4be2feadb06906c_133)</u> | [45](#i54ce78ac179642c5b4be2feadb06906c_133) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Item 9A.](#i54ce78ac179642c5b4be2feadb06906c_136) | <u>[Controls and Procedures](#i54ce78ac179642c5b4be2feadb06906c_136)</u> | [45](#i54ce78ac179642c5b4be2feadb06906c_136) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Item 9B.](#i54ce78ac179642c5b4be2feadb06906c_139) | <u>[Other Information](#i54ce78ac179642c5b4be2feadb06906c_139)</u> | [48](#i54ce78ac179642c5b4be2feadb06906c_139) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Item 9](#i54ce78ac179642c5b4be2feadb06906c_142)[C](#i54ce78ac179642c5b4be2feadb06906c_142)[.](#i54ce78ac179642c5b4be2feadb06906c_142) | <u>[Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](#i54ce78ac179642c5b4be2feadb06906c_142)</u> | [48](#i54ce78ac179642c5b4be2feadb06906c_139) |
| **<u>[PART III](#i54ce78ac179642c5b4be2feadb06906c_145)</u>** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Item 10.](#i54ce78ac179642c5b4be2feadb06906c_148) | <u>[Directors, Executive Officers and Corporate Governance](#i54ce78ac179642c5b4be2feadb06906c_148)</u> | [48](#i54ce78ac179642c5b4be2feadb06906c_148) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Item 11.](#i54ce78ac179642c5b4be2feadb06906c_148) | <u>[Executive Compensation](#i54ce78ac179642c5b4be2feadb06906c_148)</u> | [48](#i54ce78ac179642c5b4be2feadb06906c_148) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Item 12.](#i54ce78ac179642c5b4be2feadb06906c_148) | <u>[Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](#i54ce78ac179642c5b4be2feadb06906c_148)</u> | [48](#i54ce78ac179642c5b4be2feadb06906c_148) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Item 13.](#i54ce78ac179642c5b4be2feadb06906c_148) | <u>[Certain Relationships and Related Transactions, and Director Independence](#i54ce78ac179642c5b4be2feadb06906c_148)</u> | [48](#i54ce78ac179642c5b4be2feadb06906c_148) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Item 14.](#i54ce78ac179642c5b4be2feadb06906c_148) | <u>[Principal Accounting Fees and Services](#i54ce78ac179642c5b4be2feadb06906c_148)</u> | [48](#i54ce78ac179642c5b4be2feadb06906c_148) |
| **<u>[PART IV](#i54ce78ac179642c5b4be2feadb06906c_151)</u>** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Item 15.](#i54ce78ac179642c5b4be2feadb06906c_154) | <u>[Exhibits and Financial Statement Schedules](#i54ce78ac179642c5b4be2feadb06906c_154)</u> | [48](#i54ce78ac179642c5b4be2feadb06906c_154) |

---

------

<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_7)</u>

**DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS**

This Annual Report on Form 10-K of Lifetime Brands, Inc. (the "Company" and, unless the context otherwise requires, references to the "Company" shall include its consolidated subsidiaries) contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These forward-looking statements include information concerning, among other things, the Company's and its subsidiaries' plans, objectives, goals, strategies, future events, future revenues, performance, capital expenditures, financing needs and other information that is not historical information. Many of these statements appear, in particular, under the headings *Business* and *Management's Discussion and Analysis of Financial Condition and Results of Operations* included in Item 1 of Part I and Item 7 of Part II, respectively. When used in this Annual Report on Form 10-K, the words "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes," "may," "should," "seeks," "will," "potential" and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements, including, without limitation, those based on the Company's examination of historical operating trends are based upon the Company's current expectations, projections, and various assumptions. The Company believes there is a reasonable basis for its expectations and assumptions, but there can be no assurance that the Company will realize its expectations or that the Company's assumptions will prove correct.

There are a number of risks and uncertainties that could cause the Company's actual results to differ materially from the forward-looking statements contained in this Annual Report. Important factors that could cause the Company's actual results to differ materially from those expressed as forward-looking statements are set forth in this Annual Report, including the risk factors discussed in Part I, Item 1A under the heading *Risk Factors.* The timing of certain events and circumstances and known and unknown risks and uncertainties could cause our actual results or performance to be materially different from those expressed or implied by these forward-looking statements. Accordingly, you should not place undue reliance on these forward-looking statements in deciding whether to invest in our securities.

These forward-looking statements are based on information available as of the date of this Annual Report on Form 10-K. Except as may be required by law, the Company undertakes no obligation to publicly update or revise forward-looking statements which may be made to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.

**RISK FACTORS SUMMARY**

We are subject to a variety of risks and uncertainties. The following is a summary of the principal risks that we deem material to an investment in our common stock, all of which are more fully described in, and should be read in conjunction with, Item 1A. "Risk Factors" in this Annual Report on Form 10-K.

**Macroeconomic risks**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company's business may be materially adversely affected by market conditions, global and economic conditions and other factors beyond its control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company's results of operations could be negatively impacted by inflation or deflation in supply chain costs, including raw materials, sourcing, transportation and energy, and other price fluctuations caused by factors beyond its control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company's business may be materially adversely affected by the imposition of duties and tariffs and other trade barriers and retaliatory countermeasures implemented by the U.S. and other governments, as well as continued uncertainties with respect to tariffs and trade policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company's ability to obtain insurance and the terms of any available insurance coverage could be materially adversely affected by macroeconomic and company-specific events, as well as the financial condition of insurers.

**Liquidity and financial risks**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company has substantial indebtedness and the highly seasonal nature of the Company's business impacts its borrowing needs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company's failure to meet certain covenants or comply with other requirements of its Debt Agreements (as defined below) may materially and adversely affect the Company's assets, financial position and cash flows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company's borrowings are subject to interest rate fluctuations and an increase in interest rates could adversely affect the Company's financial results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company's inability to complete future acquisitions or strategic alliances and/or integrate acquired businesses could have a material adverse effect on the Company's business and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Foreign exchange variability and currency controls could materially adversely affect the Company's operating results and financial condition.

------

<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_7)</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company's business requires it to maintain large fixed costs that can affect its profitability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cost reduction efforts may not be successful and restructuring benefits may not be realized.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If the Company's goodwill or other long-term assets become impaired, the Company will be required to record impairment charges, which may be significant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company's projections of product demand, sales and net income are highly subjective in nature and the Company's future sales and net income could vary materially from the Company's projections.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Increases in the cost of employee benefits could materially adversely impact the Company's financial results and cash flows.

**Customer risks**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company faces intense competition from other companies worldwide and if the Company is unable to compete successfully, the Company's business, results of operations and financial condition could be materially and adversely affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Changes in the Company's customer purchasing practices could materially adversely affect the Company's operating results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Changes at the Company's large customers, or actions taken by them, and consolidation in the retail industry could materially adversely affect the Company's operating results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The rapidly changing retail environment could result in the loss of, or a material reduction in, sales to the Company's brick-and-mortar customers, which could materially adversely affect the Company's business, results of operations, financial condition and cash flows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Demand for new products and the inability to develop and introduce new competitive products at favorable profit margins could adversely affect the Company's performance and prospects for future growth.

**Supply chain risks**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company's reliance on international suppliers subjects the Company to regional regulatory, man-made or natural disasters, health epidemics, political or military conflicts, and economic and foreign currency exchange risk that could materially and adversely affect the Company's operating results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company's international trade activity subjects it to transportation risks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company depends on third-party manufacturers to produce the majority of its products, which presents quality control risks to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company's product costs are subject to price fluctuation.

**Intellectual property risks**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The loss of certain licenses or material changes in royalty rates could materially adversely affect the Company's operating margin and cash flow.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company may not be able to adequately establish or protect its intellectual property rights, and the infringement or loss of the Company's intellectual property rights could harm its business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If the Company is unable to protect the confidentiality of its proprietary information and know-how, the value of the Company's technology, products and services could be materially adversely affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company's brands are subject to reputational risks and damage to the Company's brands or reputation could adversely affect its business.

**Operational and regulatory risks**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Interruptions in the Company's operations caused by outside forces could cause material losses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company's international operations present special challenges that the Company may not be able to meet, and this could materially and adversely affect the Company's financial results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company operates in a regulated environment that imposes significant compliance requirements. Non-compliance with these requirements could subject the Company to sanctions and materially adversely affect the Company's business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• New and future laws and regulations governing the Internet and e-commerce could have a material adverse effect on the Company's business, results of operations and financial condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A failure in or compromise of the Company's operating systems or infrastructure or those of third parties could disrupt the Company's business and cause losses.

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<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_7)</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company is subject to cyber security and ransomware risks and may incur increasing costs in efforts to minimize those risks and to comply with regulatory standards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The rapid development and adoption of artificial intelligence technologies, including AI-driven search tools, may adversely affect the Company's product visibility, competitive position and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company sells consumer products which involve an inherent risk of product liability claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company may incur material costs due to environmental liabilities which could have a material adverse effect on the Company's business, financial condition and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company's executives and other key employees are critical to the Company's success. The loss of and/or failure to attract and maintain its highly skilled employees could adversely affect the Company's business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As a result of the Company's prior acquisition of Filament, Taylor Parent has significant influence over the Company and its interests may conflict with the Company's or those of its stockholders in the future.

**WHERE YOU CAN FIND OTHER INFORMATION**

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

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

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<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_7)</u>

**PART I**

**Item 1. Business**

**OVERVIEW**

The Company is a Delaware corporation, incorporated on December 22, 1983.

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 towards consumers purchasing moderately priced kitchenware, tableware and housewares, are sold through virtually every major level of trade. The Company generally markets several lines within each of its product categories under more than one brand. The Company sells its products directly to retailers (who may resell the Company's products through their websites) and, to a lesser extent, to distributors. The Company also sells a limited selection of its products directly to consumers through its own websites.

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

The Company continually evaluates opportunities to expand the reach of its brands and to invest in other companies, both foreign and domestic, that own or license complementary brands.

The Company has a presence in international markets through subsidiaries and affiliate companies that are based outside of the United States. In Europe, the Company operates two wholly-owned subsidiaries to sell the Company's products in the United Kingdom ("U.K.") and countries within the European Union. The brand development and design teams, administrative teams, and distribution for its international operations operate out of a state of the art facility in Aston, England as well as a third-party distribution facility located in Rotterdam, Netherlands.

The Company also has a subsidiary in the People's Republic of China ("China") to supply the Company's products to the Chinese market and subsidiaries based in Hong Kong, Australia and New Zealand to facilitate the sale of its products to the Asia Pacific region and smaller markets elsewhere in the world. The Company has a presence in Canada through a strategic alliance with a Canadian company to distribute many of the Company's products in Canada.

The Company's top brands and their respective product categories as of December 31, 2025 are:

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| | | |
|:---|:---|:---|
| **Brand** | **Licensed/Owned** | **Product Category** |
| Farberware® | Licensed <sup>(1)</sup> | Kitchenware |
| KitchenAid® | Licensed | Kitchenware |
| Mikasa® | Owned | Tableware and Home Solutions |
| Taylor® | Owned | Kitchenware and Home Solutions |
| Pfaltzgraff® | Owned | Kitchenware, Tableware and Home Solutions |
| Dolly Parton® | Licensed | Kitchenware, Tableware and Home Solutions |
| Fred® & Friends | Owned | Kitchenware |
| S'well® | Owned | Home Solutions |
| Sabatier® | Licensed | Kitchenware |
| Kamenstein® | Owned | Kitchenware |

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<sup>(1)</sup> The Company has a royalty free license to utilize the Farberware® brand, primarily for its kitchenware products, for a term that expires in 2195, subject to earlier termination under certain circumstances.

The Company sources almost all of its products from suppliers located outside the United States, primarily in China. The Company manufactures its sterling silver products at a leased facility in San Germán, Puerto Rico and fills canisters with spices and assembles spice racks at its owned distribution facility in Winchendon, Massachusetts. The Company has manufacturing operations in Mexico to manufacture certain of the Company's products.

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**BUSINESS SEGMENTS**

The Company has two reportable operating segments, U.S. and International. The U.S. segment includes the domestic operations of the Company's business that design, market and distribute its products to retailers, distributors and directly to consumers through retail websites. The International segment consists of certain business operations conducted outside the U.S.

Additional information regarding the Company's reportable segments is included in NOTE 12 — BUSINESS SEGMENTS of the Notes to the consolidated financial statements included in Item 15.

**CUSTOMERS**

The Company's wholesale customers include mass market merchants, specialty stores, department stores, warehouse clubs, grocery stores, off-price retailers, dollar channel retailers, food service distributors, food and beverage outlets, corporate sales and e-commerce retailers and marketplaces.

The Company's products are sold globally to a diverse customer base including mass market merchants (such as Walmart Inc. ("Walmart") and Target), specialty stores (such as Williams Sonoma and Dunelm), department stores (such as Macy's, Kohl's and Belk), warehouse clubs (such as Costco Wholesale Corporation ("Costco"), and BJs), grocery stores (such as Publix, Kroger, Meijer, and Fred Meyer), off-price retailers (such as the TJX Companies, Inc. ("TJX") and Ross Stores), dollar channel retailers (such as Dollar General), food service distributors (such as US Foods, Clark Food Service and Jetro), food and beverage outlets (such as Starbucks) and e-commerce retailers and online marketplaces (such as Amazon.com, Inc. ("Amazon")). The Company also does business with independent retailers, including through business-to-business websites aimed at independent retailers.

The Company also operates its own consumer websites that provide information about the Company's products and offer consumers the opportunity to purchase a limited selection of the Company's products directly.

During the years ended December 31, 2025, 2024 and 2023, Walmart accounted for 17%, 19% and 21% of consolidated net sales, respectively. During the years ended December 31, 2025, 2024 and 2023, sales to Amazon accounted for 12%, 13% and 11% of consolidated net sales, respectively. During the years ended December 31, 2025, 2024 and 2023, sales to Costco accounted for 11% of consolidated net sales, respectively. During the year ended December 31, 2025, sales to TJX accounted for 11% of consolidated net sales. Sales to Amazon and TJX are included in the Company's U.S. and International segments. Sales to Walmart and Costco are included in the Company's U.S. segment. No other customers accounted for 10% or more of the Company's sales during these periods.

**DISTRIBUTION**

The Company sells its products directly to retailers and, to a lesser extent, to distributors. The Company also sells a limited quantity of the Company's products to individual consumers and smaller retailers through its own websites. The Company operates distribution facilities at the following locations:

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| | |
|:---|:---|
| **<u>Location</u>** | **<u>Size<br>(square feet)</u>** |
| Rialto, California | 703,000 |
| Robbinsville, New Jersey | 700,000 |
| Aston, England | 228,000 |
| Winchendon, Massachusetts | 175,000 |
| Las Cruces, New Mexico | 47,000 |
| Medford, Massachusetts | 5,600 |

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Additionally, the Company uses third-party operated distribution facilities to supplement its distribution capacity, including distribution facilities located in Rotterdam, Netherlands, Australia and New Zealand. As of December 31, 2025, the Company occupied 27,000 square feet of the facility located in the Netherlands. The facilities in Australia and New Zealand are contracted based on usage.

**SALES AND MARKETING**

The Company's sales and marketing staff coordinates directly with its wholesale customers to devise marketing strategies and merchandising concepts and to furnish advice on advertising and product promotion. The Company has developed a range of promotional programs for use in the ordinary course of business to promote sales throughout the year.

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The Company's sales and marketing efforts are supported from its principal office and showroom in Garden City, New York, as well as showrooms in New York, New York; Medford, Massachusetts; Atlanta, Georgia; Bentonville, Arkansas; Issaquah, Washington; Pawtucket, Rhode Island; Menomonee Falls, Wisconsin; and Aston, England.

The Company generally collaborates with its largest wholesale customers and in many instances produces specific versions of the Company's product lines with exclusive designs and/or packaging for them.

**DESIGN AND INNOVATION**

At the heart of the Company is a culture of innovation and new product development. The Company's global in-house design and development teams currently consist of approximately 75 professional designers, artists and engineers. Utilizing the latest available design tools, technology and materials, these teams create new products, redesign existing products and create packaging and merchandising concepts.

**SOURCES OF SUPPLY**

The Company sources its products from hundreds of suppliers, almost all of which are located outside the United States. While the Company maintains key supplier relationships in China, it actively sources from a diverse global network spanning various countries including, Hong Kong, Taiwan, Japan, Vietnam, Cambodia, Malaysia, Philippines, Bangladesh, India, the United States, Canada, Mexico, the U.K., Portugal, the Netherlands, Turkey, Czech Republic, Germany, Slovakia, and Indonesia. The Company orders products significantly in advance of the anticipated time of their sale by the Company. The Company does not have any formal long-term arrangements with any of its suppliers and its arrangements with most manufacturers allow for flexibility in modifying the quantity, composition and delivery dates of orders.

**MANUFACTURING**

The Company contracts with third parties to manufacture the vast majority of its products.

The Company manufactures its sterling silver products at a leased manufacturing facility in San Germán, Puerto Rico and fills jars and other containers with spices and assembles spice racks at an owned facility in Winchendon, Massachusetts. The Company has manufacturing operations in Mexico to manufacture certain of the Company's products.

**COMPETITION**

The markets for kitchenware, tableware and other home solution products used in the home are highly competitive and include numerous domestic and foreign competitors, some of which are larger than the Company. The primary competitive factors in selling such products are innovative products, brand, quality, aesthetic appeal to consumers, packaging, breadth of product line, distribution capability and selling price.

**PATENTS AND LICENSES**

The Company owns approximately 1,060 design and utility patents. The Company does not believe that the expiration of any of its patents would have a material adverse effect on either of the Company's segments.

The Company holds certain rights to use the Farberware brand for kitchen tools, cutlery, cutting boards, shears and certain other products which together represent a material portion of its sales, through a fully-paid, royalty-free license for a term that expires in 2195, subject to earlier termination under certain circumstances. The Company also holds a license to use the KitchenAid brand for certain products, including products for kitchen tools, cutlery and bakeware, subject to a license agreement that will expire in December 2026. The Company originally entered into a licensing arrangement for use of the KitchenAid brand in 2000, and has renewed the license, typically for three to four year periods, since that time.

**HUMAN CAPITAL**

The Company seeks to attract, develop and retain qualified employees to support its operations and strategic objectives. At December 31, 2025, the Company had approximately 1,080 full-time employees, of whom approximately 130 were located in Asia Pacific, 160 were located in Europe and 790 were located in the United States and Puerto Rico. The Company also hires seasonal workers at its distribution centers through temporary staffing agencies. None of the Company's employees are represented by a labor union or subject to collective bargaining agreements, except as required by local law.

The Company believes in the importance of the retention, growth and development of our employees. The Company believes it offers competitive compensation and benefits packages to its employees. Further, the Company offers professional development opportunities to eligible employees in order to cultivate talent throughout the Company.

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**REGULATORY MATTERS**

The Company and its affiliates are subject to significant regulation by various governmental, regulatory and other administrative authorities.

As a manufacturer and distributor of consumer products, the Company is subject to the Consumer Products Safety Act in the United States and applicable consumer protection and product safety laws in the United Kingdom, the European Union and other jurisdictions in which it operates. Additionally, laws regulating certain consumer products exist in some cities and states, as well as in other countries in which the Company or its subsidiaries and affiliates sell products.

The Company's spice filling operation and other certain scale products are regulated by the U.S. Food and Drug Administration.

The Company's operations are also subject to national, state and local environmental and health and safety laws and regulations, including those that impose workplace standards and regulate the discharge of pollutants into the environment and establish standards for the handling, generation, emission, release, discharge, treatment, storage and disposal of materials and substances including solid and hazardous wastes.

The Company's international operations are subject to additional risks, including compliance with foreign laws and regulations, value-added and other indirect taxes, import and export duties and tariffs, anti-dumping regulations and trade restrictions.

**SEASONALITY**

The Company's business and working capital needs are seasonal with a majority of sales occurring in the third and fourth quarters. In 2025, net sales for the third and fourth quarters accounted for 58% of total annual net sales, respectively. In anticipation of the pre-holiday shipping season, inventory levels typically increase primarily in the June through October time period.

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**Item 1A. Risk Factors**

The Company's businesses, operations, liquidity and financial condition are subject to various risks. The Company's business, financial condition or results of operation could be materially affected by the risks below or additional risks not presently known to the Company or by risks that the Company presently deems immaterial, such as changes in the economy, disruptions due to terrorist activity or man-made or natural disasters, or changes in law or accounting standards. The risks and uncertainties described below are those that the Company considers material as of the date hereof. We have grouped the risk factors into categories for ease of reading, and without any reflection on the importance of, or likelihood of, any particular category.

**Macroeconomic risks** 

***The Company's business may be materially adversely affected by market conditions, global and economic conditions and other factors beyond its control.***

The Company's performance is affected by general economic factors, the strength of retail economies and political conditions that are beyond its control. Retail economies are impacted by factors such as consumer demand and the condition of the retail industry, which in turn, are affected by general economic factors. These general economic factors include, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• recession, inflation, deflation, unemployment and other factors adversely affecting consumer spending patterns generally;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• government policies, including tax policies relating to value-added taxes, import and export duties and quotas, anti-dumping regulations and related tariffs, import and export controls and social compliance standards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• conditions affecting the retail environment for the home and other matters that influence consumer spending in the home retail industry specifically;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• conditions affecting the housing markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• consumer credit availability and consumer debt levels, including tightening lending standards or increased credit defaults;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• material input costs, including fuel and energy costs, freight costs, and labor cost inflation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• foreign currency translation, foreign exchange rate volatility, currency controls, and restrictions on capital movements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• interest rates and the ability to hedge interest rate risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of natural disasters, conflicts and terrorist activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• public health epidemics, such as the COVID-19 pandemic;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• uncertainties relating to, and the potential for unfavorable economic conditions in the United States, the U.K., continental Europe, Asia and elsewhere;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• political unrest, war, terrorism, geopolitical uncertainties, trade policies and sanctions, including the repercussions of the ongoing conflicts between Russia and the Ukraine, conflicts in the Middle East, and increasing tensions between China and Taiwan (and any broadening of the conflict);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unstable economic and political conditions, lack of legal regulation enforcement, civil unrest and potential accompanying shifts in laws and regulations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• legislative and regulatory risk.

The occurrence of negative events related to any of the foregoing may adversely impact the Company's results of operations and financial condition**.**

***The Company's results of operations could be negatively impacted by inflation or deflation in supply chain costs, including raw materials, sourcing, transportation and energy***

The Company designs, sources and sells branded kitchenware, tableware and other homeware goods and relies on third parties to manufacture its products who are, in turn, subject to changes in their underlying manufacturing costs. The Company also relies on third parties for transportation and is exposed to fluctuations in freight costs to transport goods as well as the price of fuel and gasoline. These prices may fluctuate based on a number of factors beyond the Company's control, including from fluctuations in raw material costs (including metals, plastics and packaging materials), labor costs at third-party manufacturing facilities, ocean freight and container rates, port congestion, fuel and energy prices and changes in tariffs or duties applicable to imported goods. If the Company is unable to mitigate any cost increases from the foregoing factors through various customer pricing actions and cost reduction initiatives, its financial condition may be adversely affected. Conversely, in the event that there is deflation, the Company

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may experience pressure from its customers to reduce prices. There can be no assurance that the Company would be able to reduce its cost base to offset any such price concessions, which could adversely impact its results of operations and cash flows.

***The Company's business may be materially adversely affected by the imposition of duties and tariffs and other trade barriers and retaliatory countermeasures implemented by the U.S. and other governments.***

A majority of the Company's products are sourced from vendors outside the U.S. During the last several years there have been significant changes to U.S. trade policies, sanctions, legislation, treaties and tariffs, including, but not limited to, trade policies and tariffs affecting products from outside of the U.S. In 2025, the U.S. government introduced new tariff policy on foreign imports into the U.S. which increased tariff rates across most countries and created the possibility for additional new tariffs that may be implemented in the future. In February 2026, the U.S. Supreme Court struck down the tariffs imposed by the U.S. administration, which has indicated that it will seek alternative trade authority in response to the ruling. We cannot predict what additional changes to trade policy will be made by the U.S. administration or Congress, including whether existing tariff policies will be maintained or modified, what products may be subject to such policies, or whether the entry into new bilateral or multilateral trade agreements will occur, nor can we predict the effects that any such changes would have on our business, capital expenditures, and results of operations.

Tariff rates, product classifications and enforcement practices may continue to change with limited notice and may be applied retroactively or expanded to additional product categories. Given the Company's reliance upon non-domestic suppliers, primarily China, any significant changes to the U.S. trade policies (and those of other countries in response) or changes without sufficient notice may cause a material adverse effect on its ability to source products from other countries or significantly increase the costs of obtaining such products, which could result in a material adverse effect on our financial results. The extent and duration of increased tariffs and the resulting impact on general economic conditions and on our business are uncertain and depend on various factors, such as negotiations between the U.S. and affected countries, the responses of other countries or regions, exemptions or exclusions that may be granted, availability and cost of alternative sources of supply, and demand for our products in affected markets. Any new or additional tariffs on goods imported to the U.S. from China, Mexico, Canada, or other countries, or products imported into the European Union or other non-U.S. markets, could also increase the cost of some of our products and reduce our margins. In response to the tariffs imposed in 2025, the Company has negotiated price increases to its U.S. customers, negotiated lower product costs with its foreign suppliers and pursues diversification of its foreign sourced products to countries that are expected to be subject to lower tariffs. The imposition of additional tariffs or other trade barriers could increase our costs in certain markets and may cause our customers to find alternative sourcing or could make it more difficult for us to sell our products in some markets. In addition, increased review by U.S. Customs and Border Protection or other regulatory authorities, including with respect to country-of-origin determinations, supply chain compliance, or sanctions requirements, may result in administrative delays or additional compliance costs. Other countries where we operate or sell our products have changed, and may continue to change, their own policies on trade as well as business and foreign investment in their respective countries. Additionally, it is possible that U.S. policy changes and uncertainty about such changes could increase market volatility and currency exchange rate fluctuations. As a result of these dynamics, we cannot predict the impact to our business of any future changes to the U.S.'s or other countries' trading relationships or the impact of new laws or regulations adopted by the U.S. or other countries.

***Changes in economic policies of the government of China have had a material adverse effect on our business, results of operations and financial condition, and may continue to do so for the foreseeable future.***

We are subject to significant risks associated with the trading relationship between the U.S. and China, which is currently characterized by significant uncertainty. In addition to tariffs newly imposed by the U.S. and China, which have fluctuated and remain volatile, and may increase, our costs, there may be additional import, export, tax, or other regulatory changes effected by the U.S. and Chinese governments in the future that could also adversely affect our business and results of operations. For example, in recent years, the Chinese government has implemented new measures that address the amount of government involvement, level of development, growth rate, control of foreign exchange and allocation of resources in the economy. However, a significant portion of productive assets in China are still owned by the Chinese government. The Chinese government continues to play a significant role in regulating industrial development and exercises significant control over China's economic growth through the allocation of resources, controlling payment of foreign currency-denominated obligations, setting monetary policies, restricting the inflow and outflow of foreign capital and providing preferential treatment to particular industries or companies. Accordingly, our business, financial condition and results of operations may be influenced to a significant degree by economic, political, legal and social conditions in China.

Although some of the measures implemented by the Chinese government to develop and foster economic development and guide the allocation of resources may benefit the overall Chinese economy, these measures may have a negative effect on us. In particular, our financial condition and results of operations may be adversely affected by government control over capital investments or changes in tax regulations that are currently applicable to us. In addition, in the past the Chinese government implemented certain measures, including interest rate increases, to control the pace of economic growth. These measures may cause decreased economic activity and high rates of inflation in China, which may adversely affect our business, financial condition and results of operations.

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***The Company's ability to obtain insurance and the terms of any available insurance coverage could be materially adversely affected by macroeconomic and company-specific events, as well as the financial condition of insurers.***

The Company is generally not fully insured against all significant losses. For example, the Company is not fully insured against hurricane, earthquake, acts of war, and terrorism related losses, cybersecurity incidents, pandemics, or certain other climate-related events. In addition, certain policies may contain exclusions, sublimits, higher deductibles or self-insured retentions that could limit recoveries. A loss for which the Company is not fully insured or for which insurance proceeds are insufficient or delayed, could have a material adverse effect on the business, financial condition, results of operations and prospects.

Insurance coverage may not continue to be available or may not be available at rates or on terms similar to those presently available to the Company. The Company's ability to obtain insurance and the terms of any available insurance coverage could be materially adversely affected by international, national, state or local events and company-specific events, as well as the financial condition of insurers. If insurance coverage is not available or obtainable on acceptable terms, the Company may be required to pay costs associated with adverse future events.

**Liquidity and financial risks**

***The Company has substantial indebtedness and the highly seasonal nature of the Company's business impacts its borrowing needs.***

The Company has a substantial amount of indebtedness and is dependent on the availability of its bank loan facilities to finance its liquidity needs. As of December 31, 2025, the Company had $189.1 million of consolidated debt outstanding under a senior secured term loan credit facility and senior secured asset-based revolving credit facility.

The Company's credit agreement, dated as of March 2, 2018 (as amended, the "ABL Agreement") provides for, among other things, a maximum aggregate principal amount of $200.0 million and will mature on August 25, 2027. The Company's loan agreement, dated as of March 2, 2018 (as amended, the "Term Loan"), has a principal amount of $150.0 million, and matures on August 26, 2027. The Term Loan will be repaid in quarterly payments of principal equal to 1.25% of the original aggregate principal amount of the Term Loan, which payments commenced on March 31, 2024. The Term Loan requires the Company to make an annual mandatory prepayment of principal based upon excess cash flow (the "Excess Cash Flow"), if any. Per the Debt Agreements, when the Company makes an Excess Cash Flow payment, the payment is first applied to satisfy the future quarterly required payments in order of maturity. This amount is recorded in the current maturity of the Term Loan on the consolidated balance sheets. At December 31, 2025, borrowings under the Debt Agreements represented approximately 33% of total capital (indebtedness plus stockholders' equity).

In 2018, the Company utilized the proceeds of borrowings under the Debt Agreements (collectively, the ABL Agreement and Term Loan) (i) to repay in full all existing indebtedness for borrowed money under its former credit agreement and (ii) to finance, in part, the acquisition of Filament, the refinancing of certain indebtedness of Filament and its subsidiaries, and the payment of fees and expenses in connection with the foregoing. In 2023, the Term Loan was amended to extend the maturity of $150 million of the Term Loan. The Company may be unable to generate cash sufficient to pay when due the principal of, interest on, or other amounts due with respect to, its indebtedness. In addition, the Company's business is seasonal with a significant amount of its revenue realized during the latter portion of the year. Therefore, the Company's borrowing needs fluctuate widely based upon its seasonal working capital requirements.

The Company's leverage and the effects of seasonal fluctuations in its cash flow, borrowing requirements and ability to borrow could have significant negative consequences on the Company's financial condition and results of operations, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• impairing the Company's ability to meet the financial covenants, if and when applicable, contained in the Debt Agreements or to generate cash sufficient to pay interest or principal due under its Debt Agreements, which could result in an acceleration of some or all of the Company's outstanding debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limiting the Company's ability to borrow money, dispose of assets or sell equity to fund the Company's working capital, capital expenditures, dividend payments, debt service, strategic initiatives or for other obligations or purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limiting the Company's flexibility in planning for, or reacting to, changes in the economy, the markets, regulatory requirements, its operations or business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limiting the Company's ability to enter into derivative agreements to hedge interest rate and foreign exchange risk;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• making the Company more highly leveraged than some of its competitors, which may place the Company at a competitive disadvantage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• making the Company more vulnerable to downturns in the economy or its business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• requiring a substantial portion of the Company's cash flow from operations to make interest payments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• making it more difficult for the Company to satisfy other obligations;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risking credit rating downgrades of the Company, which could increase future debt costs and limit the future availability of debt financing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• preventing the Company from borrowing additional funds as needed or taking advantage of business opportunities as they arise, pay cash dividends or repurchase common stock.

To the extent the Company incurs additional indebtedness, the risks described above could increase. In addition, the Company's actual cash requirements in the future may be greater than expected. The Company's cash flow from operations may not be sufficient to service its outstanding debt or to repay the outstanding debt as it becomes due, and the Company may not be able to borrow money, sell assets or otherwise raise funds on acceptable terms, or at all, to service or refinance its debt.

***The Company's failure to meet certain covenants or comply with other requirements of its Debt Agreements may materially and adversely affect the Company's assets, financial position and cash flows.***

The ABL Agreement, under certain circumstances, requires the Company to maintain a certain fixed charge coverage ratio. The Term Loan requires the Company to maintain a maximum Total Net Leverage Ratio of 5.00 to 1.00 as of the last day of its fiscal quarters. As a result of this and other covenants within the Debt Agreements, the Company may be limited in its ability to incur additional debt, make investments or undertake certain other business activities, including restrictions on asset sales, dividends, share repurchases, affiliate transactions and the granting of liens. These requirements could limit the Company's ability to obtain future financing and may prevent the Company from taking advantage of attractive business opportunities. The Company's ability to meet the covenants or requirements in its Debt Agreements may be affected by events beyond the Company's control, and the Company may not be able to satisfy such covenants and requirements. A breach of these covenants or the Company's inability to comply with the restrictions could result in an event of default under the Debt Agreements, which in turn could result in an event of default under the terms of the Company's other indebtedness. Upon the occurrence of an event of default under the Company's Debt Agreements, after the expiration of any grace periods, the Company's lenders could elect to declare all amounts outstanding under the Company's debt arrangements, together with accrued interest, to be immediately due and payable. If this happens, the Company cannot assure that its assets would be sufficient to repay in full the amounts due under the Debt Agreements or the Company's other indebtedness.

***The Company's borrowings, and discount rate applied to sale of receivables, are subject to interest rate fluctuations and an increase in interest rates could adversely affect the Company's financial results.***

The Company's borrowings bear interest at floating rates. An increase in interest rates would adversely affect the Company's profitability. For example, in 2025 interest expense decreased by $2.2 million compared to the prior year as a result of a lower interest rate environment, and lower average outstanding borrowings. To the extent that the Company's access to credit may be restricted because of its own performance, its bank lenders' performances or conditions in the capital markets generally, the Company would not be able to operate normally.

The Company's Receivables Purchase Agreement also depends upon the Secured Overnight Financing rate ("SOFR"), as it is a component of the discount rate applicable to the agreement. If SOFR increases, the Company may not be able to rely on the Receivables Purchase Agreement, which could have a material and adverse effect upon the Company's financial condition, results of operations and cash flows. Changes in benchmark interest rates, including the replacement or modification of SOFR or the application of credit spreads or benchmark adjustments, could further increase financing costs or create uncertainty in the calculation of amounts payable under the Company's debt and receivables facilities. In addition, the Company's ability to access the Receivables Purchase Agreement may depend on the continued eligibility of receivables sold thereunder and the financial condition of the purchasers or other counterparties.

Although the Company may from time to time enter into hedging arrangements to mitigate interest rate risk, such arrangements may not fully offset increases in interest rates and may expose the Company to counterparty risk or additional costs.

***The Company's inability to complete future acquisitions or strategic alliances and/or integrate acquired businesses could have a material adverse effect on the Company's business and results of operations.***

The Company has historically achieved growth through acquisitions, investments and joint ventures. The Company seeks acquisition opportunities that complement and expand its operations, some of which are based outside the United States. The Company may not be able to identify and successfully negotiate suitable acquisitions, obtain financing for future acquisitions on satisfactory terms, obtain regulatory approval or otherwise complete acquisitions in the future.

Additionally, the Company may not be able to successfully integrate future acquired businesses into its existing business without substantial costs, delays or other operational or financial difficulties. Potential difficulties the Company may encounter as part of the integration process include the following:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the potential inability to successfully combine businesses in a manner that permits the Company to achieve the cost synergies expected to be achieved as a result of the consummation of the acquisition and other benefits anticipated to result from the acquisition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the potential inability to integrate acquired companies' products and services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• challenges leveraging the customer information and technology of the two companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• challenges effectuating the Company's diversification strategy, including challenges achieving revenue growth from sales of each company's products and services to the clients and customers of the other company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• complexities associated with managing the combined businesses, including difficulty addressing possible differences in corporate cultures and management philosophies and the challenge of integrating complex systems, technology, networks, and other assets of each of the companies in a seamless manner that minimizes any adverse impact on customers, clients, employees, lenders, and other constituencies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks associated with locating and entering into agreements with third-party logistics providers to assist in certain locations or to develop strategies to address inventory surges; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• potential unknown liabilities and unforeseen increased expenses or delays associated with the acquisition, including contingent liabilities, litigation exposure, tax exposures, environmental matters, compliance deficiencies or indemnification disputes; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the risk of loss of key employees, customers, suppliers or other business relationships of the acquired business following the transaction.

It is possible that the integration process could result in diversion of the attention of each company's management, which could adversely affect each company's ability to maintain relationships with customers, clients, employees, and other constituencies or the Company's ability to achieve the anticipated benefits of the acquisition, or could reduce each company's operating results or otherwise adversely affect the Company's business and financial results.

***Foreign exchange variability and currency controls could materially adversely affect the Company's operating results and financial condition.***

The Company's functional currency is the U.S. dollar. Changes in the relation of foreign currencies to the U.S. dollar will affect the Company's sales and profitability and can result in exchange losses because the Company has operations and assets located outside the United States. The Company, especially its foreign subsidiaries and affiliates, transacts business in currencies other than the U.S. dollar, primarily U.K. pounds, and to a lesser degree, Australian dollars, Chinese renminbi, Euros, Hong Kong dollars, New Zealand dollars, Mexican peso and Canadian dollars. Such transactions affect the Company's operating results and financial condition. Foreign operations expose the Company to foreign currency fluctuations, for both transactions and financial reporting translation purposes. In the consolidated financial statements, local currency financial results are translated into U.S. dollars based on the exchange rates prevailing during the reporting periods. During times of a strengthening U.S. dollar, the reported revenues and earnings of the Company's international operations will be reduced because the local currencies will translate into fewer U.S. dollars. As described below, during times of a weakening U.S. dollar, the Company's costs related to the supplies and inventory it sources internationally will increase. Foreign exchange markets have experienced significant volatility in recent periods, and geopolitical tensions, inflation differentials, monetary policy divergence and capital market disruptions may contribute to continued volatility.

The vast majority of the Company's inventory is purchased from Chinese suppliers in U.S. dollars, including inventory purchased by the Company's international operations. As a result, the gross margin from international operations is subject to volatility from movements in exchange rates, which could have an adverse effect on the financial condition and results of operations and profitability from international operations. In addition, there may be a timing lag between exchange rate movements and the Company's ability to adjust pricing, which could compress margins. From time to time, the Company enters into foreign exchange derivative contracts to hedge the volatility of exchange rates related to a portion of its international inventory purchases. The Company cannot ensure, however, that these hedges will fully offset the impact of foreign currency rate movements. If the Chinese renminbi should appreciate against the U.S. dollar, the costs of the Company's products will likely rise over time because of the impact the strengthening renminbi will have on the Company's cost of sales, and the Company may not be able to pass on these price increases to its customers. The Company is also subject to the risks of currency controls and devaluations. Currency controls may limit the Company's ability to convert currencies into U.S. dollars or other currencies, as needed, to pay dividends or make other payments from funds held by subsidiaries in countries imposing such controls, which could adversely affect the Company's liquidity.

If the Company expands its international operations, it will be subject to increased foreign exchange variability which could have a material adverse effect on the Company's results of operations.

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***The Company's business requires it to maintain large fixed costs that can affect its profitability.***

The Company's business requires it to maintain large distribution facilities in its key markets, which represent high fixed rental costs relating to its leased facilities. In addition, significant portions of the Company's selling, general and administrative expenses, including leased showrooms, are fixed, as they neither increase nor decrease proportionally with sales. Furthermore, the Company's gross margins depend, in part, on its ability to spread sourcing costs, of which a significant portion are fixed, over its products sold. Decreased demand or the need to reduce inventories can lower the Company's ability to absorb certain sourcing costs and adversely affect its results of operations. This is exacerbated by the high degree of seasonality impacting the Company, which results in lower demand during the first two quarters of the year, while many of the operating costs remain fixed, which further affects profitability.

***Cost reduction efforts may not be successful and restructuring benefits may not be realized.***

In order to operate more efficiently and control costs, the Company may announce restructuring plans from time to time, including workforce reductions, global facility consolidations and other cost reduction initiatives that are intended to generate operating expense savings. These initiatives may require upfront cash expenditures, including severance, lease termination costs, asset write-offs and other restructuring charges. The implementation of restructuring plans could be disruptive to the Company's operations, result in higher than anticipated charges and otherwise adversely affect the Company's results of operations and financial condition. Workforce reductions may also result in the loss of key personnel, decreased employee morale, or challenges in recruiting and retaining talent. In addition, the Company's ability to complete restructuring plans and achieve the anticipated benefits from a plan is subject to estimates and assumptions and may vary materially from the Company's expectations, including as a result of factors that are beyond the Company's control. Furthermore, following completion of a restructuring plan, the business may not be more efficient or effective than prior to implementation of the plan.

***If the Company's goodwill or other long-term assets become impaired, the Company will be required to record impairment charges, which may be significant.***

The carrying value of the goodwill for the U.S. reporting unit was zero as of December 31, 2025.

In the second quarter of 2025, the Company observed a sustained decline in the market valuation of the Company's common stock. Additionally, the Company's near term forecasts for the U.S. reporting unit were revised downward due to changes in retailer and consumer buying patterns, which were impacted by the recent changes in the U.S. tariff policies. Based on these factors the Company concluded that impairment indicators for the U.S. reporting unit were present as of June 30, 2025.

The company performed an interim impairment test of the goodwill in the U.S. reporting unit as of June 30, 2025 by comparing the fair value with its carrying value. The analysis was performed by using a discounted cash flow and market multiple method. Accordingly, this fair value measurement is classified as Level 3 since it is based primarily on unobservable inputs. Based upon the analysis performed, the Company's U.S. reporting unit goodwill was fully impaired and a $33.2 million non-cash goodwill impairment charge was recognized. The goodwill impairment charge was the result of the decline in the Company's near term forecasts that were revised downward due to the changes in retailer and consumer buying patterns and an increase to the company-specific risk premium, which is an input to the cost of capital assumption, to address the potential risks in the long-term forecast which remain uncertain at this time.

A portion of the Company's long-term assets consists of other identifiable intangible assets, including trade names; and long-lived assets. At December 31, 2025, finite-lived intangible assets, net of accumulated impairment charges and accumulated amortization totaled $132.9 million. These assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Events and conditions that could result in impairment include a prolonged period of global economic weakness, a decline in economic conditions and/or a slow, weak economic recovery, as well as sustained declines in the price of the Company's common stock, adverse changes in the regulatory environment, adverse changes in the market share of the Company's products, adverse changes in interest rates, further corporate income tax reforms or other factors leading to reductions in the long-term sales or profitability that the Company expects. If the undiscounted cash flows expected to be generated by these assets are less than their carrying amounts, the Company would be required to record an impairment charge equal to the excess of the carrying value over fair value. The recognition of an impairment of the Company's assets would negatively affect the Company's results of operations and total capitalization, the effect of which could be material.

***The Company's projections of product demand, sales and net income are highly subjective in nature and the Company's future sales and net income could vary materially from the Company's projections.***

From time to time, the Company may provide projections to its stockholders, lenders, the investment community, and other stakeholders of the Company's future sales and net income. Since the Company does not have long-term purchase commitments from customers and the customer order and shipment process is very short, it is difficult for the Company to accurately predict the demand for many of its products, or the amount and timing of the Company's future sales and related net income. The Company's projections are based on management's best estimate of sales using historical sales data and other information deemed relevant. These projections

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are highly subjective since sales can fluctuate substantially based on the demands of retail customers and due to other risks described in this Annual Report. Additionally, changes in retailer inventory management strategies could make the Company's inventory management more difficult. Because the Company's ability to forecast product demand and the timing of related sales requires significant subjective input, future sales and net income could vary materially from the Company's projections, and any such variances could adversely affect the Company's stock price, liquidity, covenant compliance or investor confidence.

***Increases in the cost of employee benefits could materially adversely impact the Company's financial results and cash flows.***

The Company self-insures a substantial portion of the costs of employee healthcare and workers compensation. This could result in higher volatility in the Company's earnings and exposes the Company to higher financial risks. The Company's medical costs in recent years have generally increased, reflecting healthcare cost inflation and higher utilization trends and changes in employee demographics, claims experience, or the severity of claims could result in medical and workers' compensation costs that exceed the Company's expectations or established reserves. The Company has stop-loss coverage in place for catastrophic events, but the aggregate impact of a high number of claims up to the Company's stop-loss limit may have an effect on the Company's profitability.

***There are inherent limitations on the effectiveness of the Company's controls.***

The Company does not expect that its disclosure controls or the Company's internal controls over financial reporting will prevent or detect all errors or fraud. A control system, no matter how well-designed and operated, can provide only reasonable, not absolute, assurance that the control system's objectives will be met. The design of a control system must reflect the fact that resource constraints exist, and the benefits of controls must be considered relative to their costs. Further, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, have been detected. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Projections of any evaluation of the effectiveness of controls to future periods are subject to risks. Over time, controls are revised, as necessary, due to changes in conditions or deterioration in the degree of compliance with policies or procedures. In addition, increased reliance on information technology systems and evolving cybersecurity threats may place additional strain on the Company's control environment. If in the future the Company's controls become inadequate, it could fail to meet its financial reporting obligations, its reputation may be adversely affected, its business and operating results could be harmed, and the market price of its stock could decline.

**Customer risks**

***The Company faces intense competition from other companies worldwide and if the Company is unable to compete successfully, the Company's business, results of operations and financial condition could be materially and adversely affected.***

The markets for the Company's products are intensely competitive with the principal competitive factors being product innovation, brand name, product quality, aesthetic appeal to customers, packaging, breadth of product offerings, distribution capability, delivery time and price. Advantages or disadvantages in any of these competitive factors may be sufficient to cause the customer to consider changing providers of the kinds of products that the Company sells. The Company competes with many other suppliers, some of which are larger than the Company, have greater financial and other resources or employ brands that are more established, have greater consumer recognition or are more favorably perceived by consumers or retailers than the Company's brands. Some competitors may be willing to reduce prices and accept lower profit margins to compete with the Company. As a result of this competition, the Company could lose market share and sales, or be forced to reduce its prices to meet competition. If the Company's product offerings are unable to compete successfully, the Company's business, results of operations and financial condition could be materially and adversely affected.

***Changes in the Company's customer purchasing practices could materially adversely affect the Company's operating results.***

The Company's wholesale customers include mass market merchants, specialty stores, department stores, warehouse clubs, grocery stores, off-price retailers, dollar channel retailers, food service distributors, food and beverage outlets, corporate sales and e-commerce retailers and marketplaces. Unanticipated changes in purchasing and other practices by the Company's customers, including a customer's pricing and payment terms, inventory de-stocking, limitations on shelf space, more extensive packaging requirements, changes in order quantities, use of private label brands and other practices, could materially and adversely affect the Company's business, results of operations and financial condition. In addition, as retailers continue to closely manage inventory levels and optimize their supply chains, retailers may evaluate suppliers based on their ability to deliver orders at the quantity and schedule specified, which is known as the "on-time-in-full" delivery metric. Supply-chain complexity and customer demand for on-shelf availability creates additional pressure on delivery performance, which in turn can add strain on distribution channels. The Company's annual earnings and cash flows also depend to a great extent on the results of operations in the latter half of the year due to the seasonality of its sales. The Company's success and sales growth is also dependent on its evaluation of consumer preferences and changing trends.

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As certain online retailers grow they may continue to demand lower pricing, special packaging, shorter lead times for the delivery of products, smaller more frequent shipments, or impose other requirements on product suppliers. The cost of compliance with customers' demands could have a material adverse effect on the Company's business, results of operations and financial condition.

Many of the Company's wholesale customers are significantly larger than the Company, have greater financial and other resources and also purchase goods directly from vendors in Asia and elsewhere. Decisions by large customers to increase their purchases directly from overseas vendors could have a material adverse effect on the Company's business, results of operations and financial condition. Significant changes or financial difficulties, including consolidations of ownership, restructurings, bankruptcies, liquidations or other events that affect retailers, could result in fewer retailers selling the Company's products, reliance on a smaller group of customers, an increase in the risk of extending credit to these customers or limitations on the Company's ability to collect amounts due from these customers. Although the Company has long-established relationships with many of its customers, the Company does not have any long-term supply or binding contracts or guarantees of minimum purchases. Purchases by the Company's customers are generally made using individual purchase orders. Customers may cancel their orders, change purchase quantities from forecast volumes, delay purchases for a number of reasons beyond the Company's control or change other terms of their business relationship with the Company. Significant or numerous cancellations, reductions, delays in purchases or changes in business practices by customers could have a material adverse effect on the Company's business, results of operations and financial condition.

Retailers place great emphasis on timely delivery of products for specific selling seasons, especially during the third fiscal quarter, and on the fulfillment of consumer demand throughout the year. The Company cannot control all of the various factors that might affect product delivery to retailers. Failure to deliver products to the Company's retailers in a timely and effective manner, often under special vendor requirements to use specific carriers and delivery schedules, could damage the Company's reputation and brands and result in a loss of customers or reduced orders.

***Changes at the Company's large customers, or actions taken by them, and consolidation in the retail industry could materially adversely affect the Company's operating results.***

During the years ended December 31, 2025, 2024 and 2023, Walmart accounted for 17%, 19% and 21% of consolidated net sales, respectively. During the years ended December 31, 2025, 2024 and 2023, sales to Amazon accounted for 12%, 13% and 11% of consolidated net sales, respectively. During the years ended December 31, 2025, 2024 and 2023, sales to Costco accounted for 11% of consolidated net sales, respectively. During the year ended December 31, 2025, sales to TJX accounted for 11% of consolidated net sales. Sales to Amazon and TJX are included in the Company's U.S. and International segments. Sales to Walmart and Costco are included in the Company's U.S. segment. No other customers accounted for 10% or more of the Company's sales during these periods.

A material reduction in sales to the aforementioned or other top customers in the aggregate, could adversely affect the Company's business and operating results. Large customers may seek price reductions, extended payment terms, promotional support or other concessions, which could reduce margins. Any significant changes or financial difficulties that affect these customers, such as reduced sales by such customers (whether for reasons that affect a particular customer or the retail industry in general) may also result in reduced demand for the Company's products. The Company would also be subject to increased credit risk with respect to such customers. In particular, the concentration of the Company's business with Walmart, Costco, Amazon and TJX extends to its international business as well as through the Company's strategic alliance in Canada, due to the market presence of Walmart, Costco, Amazon and TJX in these foreign countries. Any changes in purchasing practices or decline in the financial condition, of Walmart, Costco, Amazon and TJX or other large customers, may have a material adverse impact on the business, results of operations and financial condition of the Company.

The Company's large customers also have significant purchasing leverage. Customers may demand lower pricing, special packaging, shorter lead times for the delivery of products or impose other requirements on product suppliers like the Company. These business demands may relate to inventory practices, logistics or other aspects of the customer-supplier relationship. If the Company does not effectively respond to the demands of its customers, they could decrease or eliminate their purchases from the Company. These risks could be exacerbated if such large customers consolidate, or if the Company's smaller customers consolidate to become larger customers, which would increase their purchasing leverage. A reduction in the purchases of the Company's products by its wholesale customers or the costs of complying with customer business demands could have a material adverse effect on the Company's business, financial condition and results of operations.

The Company's customers could carry products that directly compete with the Company's products for retail space and consumer purchases. There is a risk that these customers could give higher priority to products of, or form alliances with, the Company's competitors. The failure of customers to provide the Company's products with similar or better levels of promotional support and retail space as competitors receive could have a material adverse effect on the Company's business, results of operations and financial condition.

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***The rapidly changing retail environment could result in the loss of, or a material reduction in, sales to the Company's brick-and-mortar customers, which could materially adversely affect the Company's business, results of operations, financial condition and cash flows.***

The retail environment is highly competitive and rapidly evolving with the increase pace of technological development. Consumers are increasingly embracing shopping online. As a result, an increasing portion of total consumer expenditures with retailers is occurring online and through mobile commerce applications. This overall trend has negatively affected many brick-and-mortar retailers. If the Company's brick-and-mortar retail customers fail to maintain or grow their overall market position through the integration of physical retail presence and digital retail, these customers may experience financial difficulties including store closures, bankruptcies or liquidations. This could, in turn, substantially reduce the Company's revenues, increase credit risk and have a material adverse effect on the Company's results of operations, financial condition and cash flows.

***If the Company is unable to effectively manage its existing online business, the Company's reputation and operating results may be harmed.***

The success of the Company's online business depends, in part, on factors over which the Company may have limited control. The Company must successfully respond to changing consumer preferences and online buying trends. The Company is also vulnerable to certain additional risks and uncertainties associated with operating an online business, including: changes in required technology interfaces, website downtime and other technical failures, costs and technical issues as the Company upgrades its website software, computer viruses, changes in applicable federal and state regulations, security breaches, data breaches, and consumer privacy concerns. In addition, the Company must keep up to date with competitive technology trends, including the use of improved technology, artificial intelligence-driven search or recommendation platforms, creative user interfaces and other online marketing tools such as paid search, which may increase its costs and which may not succeed in increasing sales or attracting customers. The Company's failure to successfully respond to these risks and uncertainties might adversely affect the sales in its online business, as well as damage the Company's reputation and brands.

***Demand for new products and the inability to develop and introduce new competitive products at favorable profit margins could adversely affect the Company's performance and prospects for future growth.***

New product introductions and product innovation are significant contributors to the Company's growth strategy. The Company's long-term success in the competitive retail environment depends in part on the Company's ability to develop and market a continuing stream of innovative new products that meet changing consumer preferences. The uncertainties associated with developing and introducing new products, such as market demands and the costs of development and production may impede the successful development and introduction of new products. Acceptance of new products may not meet sales expectations due to several factors, such as the Company's failure to accurately predict market demand or its inability to resolve technical issues in a timely and cost-effective manner. Additionally, the inability to develop new products on a timely basis could result in the loss of business to competitors.

**Supply chain risks**

***The Company's reliance on international suppliers subjects the Company to regional regulatory, man-made or natural disasters, health epidemics, political or military conflicts, economic and foreign currency exchange risk that could materially affect the Company's operating results.***

The Company sources its products from suppliers located principally in Asia, Europe and the United States, which subjects the Company to various risks, including man-made or natural disasters, adverse macroeconomic conditions (including inflation, slower growth, and recession), and foreign currency changes, all of which could create disruptions in its supply chain. Similarly, geopolitical risks, including instability resulting from civil unrest, political demonstrations, strikes and armed conflict or other crises, such as conflicts in Ukraine, the Middle East and surrounding areas (and any broadening of the conflict), and resulting sanctions could change the global supply chain dynamics and demand. Additionally, the Company's vendors in Asia, from whom a substantial majority of the Company's products are sourced, are located primarily in China, which subjects the Company to regional risks including regulatory, social and other risks in addition to the risks resulting from tensions between the United States and China involving trade policies and certain regulatory actions. The Company's ability to select and retain reliable vendors and suppliers who provide timely deliveries of quality parts and products efficiently will impact its success in meeting customer demand for timely delivery of quality products. The Company's sourcing operations and its vendors are impacted by labor costs in China, where labor historically has been readily available at low cost relative to labor costs in North America. However, as China is experiencing rapid social, political and economic changes, labor costs have risen in some regions and labor in China may not continue to be available to the Company at costs consistent with historical levels. Changes in labor or other laws may be enacted, in China or in other countries in which the Company does business, which could have a material adverse effect on the Company's operations and/or those of the Company's suppliers. Disruptions in maritime trade routes or other transportation channels could result in extended lead times, delivery delays and increased freight costs. The risk of ongoing supply disruptions may further result in delayed deliveries of our products. Changes in currency exchange rates might negatively affect the Company and its overseas vendors' profitability and business prospects. The Company does

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not have access to its vendors' financial information and the Company is unable to assess its vendors' financial condition, including their liquidity. Interruption of supplies from any of the Company's vendors, or the loss of one or more key vendors, could have a negative effect on the Company's business and operating results. A disruption in deliveries to or from suppliers or decreased availability of materials could have an adverse effect on our ability to meet our commitments to customers or increase our operating costs. A disruption from such third-party suppliers, manufacturers or service providers, capacity constraints, production disruptions, price increases, quality control issues, recalls or other decreased availability of parts and products could adversely affect our ability to meet our commitments to customers and have a material adverse effect on our business, financial condition and results of operations.

***The Company's international trade activity subjects it to transportation risks.***

The Company imports its products for delivery to its distribution centers, as well as arranges for its customers to import goods to which title has passed overseas or at a port of entry. For purchases that are to be delivered to its distribution facilities, the Company arranges for transportation, primarily by sea, from ports in Asia and Europe to ports in the United States, principally New York/Newark/Elizabeth and Los Angeles/Long Beach, and in the U.K., principally Felixstowe. Accordingly, the Company is subject to risks incidental to such transportation. These risks include, but are not limited to, increases in fuel costs, fuel shortages, the availability of ships, increased security restrictions, transportation reroutes in response to geopolitical conflict, work stoppages, weather disruptions and carriers' ability to provide delivery services to meet the Company's shipping needs. Port congestion or other disruptions affecting major shipping lanes or ports may also delay deliveries. Transportation disruptions and increased transportation costs could materially adversely affect the Company's business, results of operations and financial condition.

***The Company depends on third-party manufacturers to produce the vast majority of its products, which presents quality control risks to the Company.***

With the exception of the Company's sterling silver products, the Company sources almost all of its products from suppliers located outside the United States, primarily in China, which restricts the Company's ability to monitor and control their manufacture of the Company's goods.

The third party manufacturers may not continue to meet the Company's quality standards, social standards regarding its workforce that are expected in the United States or legislation and regulations that apply to the products the Company contracts to manufacture. There is also no assurance that the Company's quality control program will adequately audit, analyze and evaluate the quality standards of third party manufacturers. Failure by the Company's manufacturers to meet these standards could, in turn, increase order cancellations, returns and price concessions and decrease customer demand for the Company's products. Non-compliance with the Company's product standards, regulatory requirements or product recall (or other regulatory actions) could have a material adverse effect on the Company's financial condition, results of operations or cash flows.

***The Company's product costs are subject to price fluctuation.***

Various commodities comprise the raw materials used to manufacture the Company's products. The prices of these commodities have historically fluctuated on a cyclical basis and have often depended on a variety of factors over which the Company has no control. Additionally, labor costs represent a significant component of the Company's supplier's manufacturing costs and the Company's suppliers may increase the prices they charge the Company if they experience rising labor costs. The cost of producing and distributing the Company's products is also sensitive to energy costs, duties and tariffs. For example, freight costs significantly increased in 2022 and began to return to lower levels in 2023. The Company is unable to determine to what extent, if any, it will be able to pass future cost increases through to its customers. The Company's inability to come to favorable agreements with its suppliers or to pass increased costs through to the Company's customers could materially and adversely affect its financial condition or results of operations.

**Intellectual property risks**

***The loss of certain licenses or material changes in royalty rates could materially adversely affect the Company's operating margin and cash flow.***

Significant portions of the Company's business are dependent on trade names, trademarks and patents, some of which are licensed from third parties. In 2025, sales of licensed brands accounted for approximately 20% of the Company's gross sales. The Company's licenses for many of these brands require it to pay royalties based on sales. Many of these license agreements are subject to termination by the licensor, if, for example, the Company fails to satisfy certain minimum sales obligations or breaches the terms of the license. The loss of significant licenses or a material increase in the royalty rates the Company pays or other new terms negotiated upon renewal of such licenses could result in a reduction of the Company's operating margins and cash flow from operations or otherwise adversely affect its business.

The Company holds certain rights to use the Farberware brand for kitchen tools, cutlery, cutting boards, shears and certain other products which together represent a material portion of its sales, through a fully-paid, royalty-free license for a term that expires in

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2195, subject to earlier termination under certain circumstances. The licensor is a joint venture of which the Company is a 50% owner. The other 50% owner of the joint venture has the right to terminate the Company's license if the Company materially breaches any of the material terms of the license and fails to cure the material breach within 180 days of notice of the breach, if it is determined in an arbitration proceeding that money damages alone would not be sufficient compensation to the licensor and that the breach is so egregious as to warrant termination of the license and forfeiture of the Company's rights to use the brand under that license agreement. If the Company were to lose the Farberware license for kitchen tools, cutlery, cutting boards, shears and certain other products through termination as a result of an uncured breach, its business, results of operations and financial condition would be materially adversely affected.

Sales of KitchenAid branded products, to a lesser extent, also represent a material portion of the Company's sales. The Company also holds a license to use the KitchenAid brand for certain products, including products for kitchen tools, cutlery and bakeware, subject to a license agreement that will expire in December 2026. The Company originally entered into a licensing arrangement for use of the KitchenAid brand in 2000, and has renewed the license, typically for three-year periods, since that time. Although it expects to be able to renew its current KitchenAid license prior to its expiration, there is no assurance that the Company will be able to do so on reasonable terms, or at all, and any failure to do so could have a material adverse effect on the Company's business, results of operations and financial condition.

***The Company may not be able to adequately establish or protect its intellectual property rights, and the infringement or loss of the Company's intellectual property rights could harm its business.***

To establish and protect the Company's intellectual property rights, the Company relies upon a combination of U.S., foreign and multi-national patent, trademark, copyright and trade secret laws, together with licenses, confidentiality agreements and other contractual arrangements. The measures that the Company takes to protect its intellectual property rights may prove inadequate to prevent third parties from infringing or misappropriating the Company's intellectual property, or from breaching their contractual obligations to the Company.

The Company has obtained and applied for numerous U.S. and foreign trademark, service mark and patent registrations, and will continue to evaluate the registration of additional marks, patents or other intellectual property, as appropriate. The Company cannot guarantee that any of its pending applications will be approved by the applicable governmental authorities. Moreover, even if such applications are approved, third parties may seek to oppose, declare invalid or otherwise challenge these registrations. Failure to obtain registrations for the Company's intellectual property in the United States and other countries could limit the Company's ability to protect its intellectual property rights and impede the Company's marketing efforts and operations in those jurisdictions.

The Company may need to resort to litigation to enforce or defend its intellectual property rights. If a competitor or collaborator files a patent application claiming technology also claimed by the Company, or a trademark application claiming a trademark, service mark or trade dress also used by the Company, in order to protect the Company's rights, the Company may have to participate in opposition or interference proceedings before the U.S. Patent and Trademark Office or a similar foreign agency. The Company cannot guarantee that the operation of its business does not infringe or otherwise violate the intellectual property rights of third parties, and the Company's intellectual property rights may be challenged by third parties or invalidated through administrative process or litigation. Third parties may assert infringement or other intellectual property claims against the Company, which could result in costly litigation, settlements, licensing arrangements or restrictions on the manufacture, marketing or sale of certain products. The costs associated with protecting intellectual property rights, including costs associated with litigation or administrative proceedings, may be material and there can be no assurance that any such litigation or administrative proceedings will be successful. Any such matters or proceedings could be burdensome, divert the time and resources of the Company's personnel and the Company may not prevail. Furthermore, even if the Company's intellectual property rights are not directly challenged, disputes among third parties could lead to the weakening or invalidation of the Company's intellectual property rights, or other parties such as the Company's competitors may independently develop technologies that are substantially equivalent or superior to the Company's technology.

The laws of certain foreign countries in which the Company operates or may operate in the future do not protect, and the governments of certain foreign countries do not enforce, intellectual property rights to the same extent as do the laws and government of the U.S., which may negate the Company's competitive or technological advantages in such markets. Moreover, any repeal or weakening of intellectual property laws or enforcement of those laws in the United States or foreign jurisdictions could make it more difficult for the Company to adequately protect its intellectual property rights, negatively impacting their value and increasing the cost of enforcing the Company's rights. If the Company is unable to establish or adequately protect its intellectual property rights, the Company's business, financial condition and results of operations could be materially and adversely affected.

***If the Company is unable to protect the confidentiality of its proprietary information and know-how, the value of the Company's technology, products and services could be materially adversely affected.***

In addition to registered intellectual property, the Company relies on know-how and other proprietary information in operating its business. If this information is not adequately protected, then it may be disclosed or used in an unauthorized manner. To the extent that

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consultants, vendors, key employees or other third parties apply technology independently developed by them or by others to the Company's proposed products in the absence of a valid license or suitable non-disclosure or assignment of inventions provisions, disputes may arise as to the ownership of or rights to use such technology, which may not be resolved in the Company's favor. If other parties breach confidentiality or other agreements, or if the Company's registered intellectual property is not protected in the U.S. or foreign jurisdictions, this could harm the Company by enabling the Company's competitors and other entities, who may have greater experience and financial resources, to copy or use the Company's proprietary information in the development of their products, methods or technologies.

***The Company's brands are subject to reputational risks and damage to the Company's brands or reputation could adversely affect its business.***

The Company's brands and its reputation are among its most important assets. The Company's ability to attract and retain customers depends, in part, upon external perceptions of the Company, the quality of its products and its corporate and management integrity. Consumer-facing businesses are particularly vulnerable to reputational harm, as negative perceptions can rapidly influence purchasing decisions and retailer relationships.

Reputational harm may arise from a variety of sources, including product quality issues, recalls, litigation, regulatory actions, allegations regarding labor or sourcing practices, data security incidents, public statements by employees or third parties, or changes in consumer sentiment. The rapid and widespread dissemination of information through social media, digital platforms and online marketplaces may amplify negative publicity, whether accurate or not, and may limit the Company's ability to effectively respond.

Damage to the Company's brands or reputation, negative publicity or adverse perceptions about the Company could reduce consumer demand, lead to the loss of retail shelf space or online visibility, increase promotional spending, or otherwise adversely affect the Company's business, results of operations and financial condition.

**Operational and regulatory risks**

***Interruptions in the Company's operations caused by outside forces could cause material losses.***

The Company's worldwide operations could be subject to natural and man-made disasters, telecommunications failures, water shortages, tsunamis, floods, earthquakes, hurricanes, typhoons, fires, extreme weather conditions, conflicts, acts of terrorism, health epidemics and other business interruptions. The occurrence of any of these business disruptions could seriously harm the Company's business, revenue and financial condition and increase the Company's costs and expenses. If the Company's or its manufacturers' warehousing facilities or transportation facilities are damaged or destroyed, the Company would be unable to distribute products on a timely basis, which could harm the Company's business. The Company's back-up operations may be inadequate, and the Company's business interruption insurance may not be sufficient to compensate for any losses that may occur.

***The Company's international operations present special challenges that the Company may not be able to meet, and this could materially and adversely affect the Company's financial results.***

The Company conducts business outside of the United States through subsidiaries, affiliates and joint ventures. These entities have operations and assets in the U.K., the Netherlands, Canada, China, Hong Kong, Australia, New Zealand and Mexico. Therefore, the Company is subject to increases and decreases in its investments in these entities resulting from the impact of fluctuations in foreign currency exchange rates. These entities also bear risks similar to those faced by the Company. However, there are additional risks related to these operations, including the failure of the Company's partners or other investors to meet their obligations, governance or compliance failures, and higher credit and liquidity risks related to thinly capitalized entities. Failure of these entities or the Company's vendors to adhere to required regulatory or other standards, including social compliance standards, could materially and adversely impact the Company's reputation and business.

In addition, the Company sells its products in foreign countries and seeks to increase its level of international business activity. Accordingly, the Company is subject to various risks, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• U.S.-imposed embargoes and sanctions on sales to specific countries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• foreign import controls (which may be arbitrarily imposed or enforced);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• import regulations and duties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• export regulations (which require the Company to comply with stringent licensing regimes);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• anti-dumping regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• price and currency controls;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• exchange rate fluctuations;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• dividend remittance restrictions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• expropriation of assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• war, civil unrest and riots;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• government instability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the necessity of obtaining governmental approval for new and continuing products and operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• legal systems or decrees, laws, taxes, regulations, interpretations and court decisions that are not always fully developed and that may be retroactively or arbitrarily applied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• restructuring and integration of the Company's European operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• public health epidemics;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unanticipated income taxes, excise duties, import taxes, export taxes or other governmental assessments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• locating and entering into agreements with third-party logistics providers to assist in certain locations outside the United States. In addition, the development of additional distribution space abroad involves significant financial and operational risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• difficulties in managing a global enterprise; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• data protection, privacy and anti-corruption compliance requirements that may impose significant costs and penalties for non-compliance.

Any significant violations of regulations or the occurrence of the events listed above could result in civil or criminal sanctions, monetary fines, reputational harm, or the loss of export or other licenses, which could have a material adverse effect on the Company's business, results of operations and financial condition. In addition, the Company's organizational structure may limit its ability to transfer funds between countries, particularly into and out of the United States, without incurring adverse tax consequences. Regulatory restrictions may also limit the Company's ability to transfer funds in certain jurisdictions. Any of these events could result in a loss of business or other unexpected costs that could reduce sales or profits and have a material adverse effect on the Company's financial condition, results of operations and cash flows.

***The Company operates in a regulated environment that imposes significant compliance requirements. Non-compliance with these requirements could subject the Company to sanctions and materially adversely affect the Company's business.***

The Company is subject in the ordinary course of its business, in the United States and elsewhere, to many statutes, ordinances, rules and regulations that, if violated by the Company or its affiliates, partners or vendors, could have a material adverse effect on the Company's business. The Company is required to comply with the United States Foreign Corrupt Practices Act ("FCPA"), the U.K. Bribery Act and similar anti-bribery, anti-corruption and anti-kickback laws adopted in many of the countries in which the Company does business that prohibit the Company from engaging in bribery or making other prohibited payments to foreign officials for the purpose of obtaining or retaining business and also require maintenance of adequate record-keeping and internal accounting practices to accurately reflect transactions. Under the FCPA, companies operating in the United States may be held liable for actions taken by their strategic or local partners or representatives. The U.K. Bribery Act is broader in scope than the FCPA in that it directly addresses commercial bribery in addition to bribery of government officials and it does not recognize certain exceptions, notably facilitation payments that are permitted by the FCPA. Civil and criminal penalties may be imposed for violations of these laws. In many of the countries in which the Company operates, particularly those with developing economies, it is or has been common for government officials and businesses to engage in business practices that are prohibited by these laws. If the Company does not properly implement and maintain practices and controls with respect to compliance with applicable anti-corruption, anti-bribery and anti-kickback laws, or if the Company fails to enforce those practices and controls properly, the Company may be subject to regulatory sanctions, including administrative costs related to governmental and internal investigations, civil and criminal penalties, injunctions and restrictions on the Company's business and capital raising activities, any of which could materially and adversely affect the Company's business, results of operations and financial condition. The Company's employees, distributors, dealers and other agents could engage in conduct that is not in compliance with such laws for which the Company might be held responsible. If the Company's employees, distributors, dealers or other agents are found to have engaged in illegal practices, the Company could suffer substantial penalties and the reputation, business, results of operations and financial condition of the Company could be materially adversely affected.

***New and future laws and regulations governing the Internet and e-commerce could have a material adverse effect on the Company's business, results of operations and financial condition.***

The Company is subject to laws and regulations governing the Internet and e-commerce. These existing and future laws and regulations may impede the growth of the Internet, e-commerce or other online services. These regulations and laws may cover taxation, user privacy, data protection, pricing, content, copyrights, distribution, electronic contracts and other communications,

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consumer protection, the provision of online payment services, broadband residential Internet access and the characteristics and quality of products and services. It is not clear how existing laws governing issues such as property ownership, sales and other taxes, and personal privacy apply to the Internet and e-commerce. Unfavorable resolutions of these issues could diminish the demand for the Company's products on the Internet and increase the cost of doing business. For example, in 2018, the U.S. Supreme Court ruling in *South Dakota v. Wayfair, Inc. et al* reversed the longstanding precedent that remote sellers are not required to collect state and local sales taxes and established that a state may enforce or adopt laws requiring online retailers to collect and remit sales tax if there is a substantial nexus between the online retailer's activity and the state, even if the retailer has no physical presence within the taxing state. While the Company now collects, remits and reports sales tax in states in which it does business, it is possible that Company's effective income tax rate, the cost of the Company's e-commerce business, and the growth of its e-commerce business could be materially adversely affected by other new laws or regulations governing the Internet and e-commerce. This potential negative impact on the Company's e-commerce business could have a material adverse effect on the Company's overall business, results of operations and financial condition.

***A failure in or compromise of the Company's operating systems or infrastructure or those of third parties could disrupt the Company's business and cause losses.***

The Company relies on many information technology systems for the operation of its principal business functions, including, but not limited to, the Company's enterprise resource planning, warehouse management, inventory forecast and ordering and call center systems. In the case of the Company's inventory forecast and ordering system, most of the Company's orders are received directly through electronic connections with the Company's largest customers. Additionally, the success of certain product categories in a competitive marketplace is dependent upon the creation and launch of new, innovative products. Accordingly, to keep pace within a competitive retail environment, the Company uses and will continue to evaluate new technologies to improve the efficiency of designing new innovative products. The failure or compromise of any of these systems or technologies could have a material adverse effect on the Company's business and results of operations.

In January 2025, the Company announced the relocation of its East Coast distribution facility currently located in Robbinsville, NJ (the "Robbinsville Facility") to a warehouse and distribution space in Hagerstown, Maryland (the "Hagerstown Facility"). The Hagerstown Facility is a new built to suit distribution center and the Company estimates it will require an investment of capital expenditures of approximately $9.3 million for equipment and certain leasehold improvements, of which $2.3 million has been incurred during fiscal 2025. The Company expects to incur exit costs of approximately $7 million as well as start-up costs of approximately $7 million. Additionally, the Company's purchases that are to be delivered this new distribution facility will require the Company to arrange for transportation, primarily by sea, from ports in Asia and Europe to a new port in the United States. The relocation subjects the Company to certain risks such as delays in construction, increase in exit and relocation costs, and transportation risks. Failure to successfully navigate these risks could have a material adverse effect on the Company's business and results of operations.

***The Company is subject to cyber security risks and may incur increasing costs in efforts to minimize those risks and to comply with regulatory standards.***

The Company employs information technology systems and operates websites which allow for the secure storage and transmission of proprietary or confidential information regarding the Company's customers, employees and others, including credit card information and personal identification information. The Company has made significant efforts to secure its computer network to mitigate the risk of possible cyber-attacks, including, but not limited to, data breaches, and is continuously working to upgrade its existing information technology systems and provide employee awareness training around phishing, malware, and other cyber risks in an effort to protect against cybersecurity threats and security breaches. Despite these efforts, any future cyber incidents could compromise the Company's information technology systems, disrupt operations, result in the loss, theft or misuse of confidential or personal information, and adversely affect the Company's ability to process transactions and fulfill orders. Additionally, as Artificial Intelligence ("AI") continues to evolve, cyber-attackers could also use AI to develop malicious code and sophisticated phishing attempts. Although we believe that we have robust information security procedures, controls and other safeguards in place, as cyber threats continue to evolve, we may be required to expend additional resources to continue to enhance our information security measures and/or to investigate and remediate information security vulnerabilities. Cybersecurity incidents may also arise from vulnerabilities in third-party service providers, including cloud service providers, payment processors, logistics providers and other vendors upon which the Company relies. Any cybersecurity incidents could lead to negative publicity, loss of sales and profits or cause the Company to incur significant costs to reimburse third- parties for damages, which could adversely impact profits.

Additionally, the Company must comply with increasingly complex and rigorous regulatory standards enacted to protect businesses and personal data, including the General Data Protection Regulation ("GDPR") and the California Consumer Privacy Act. GDPR and similar international data protection laws impose strict requirements regarding the collection, use, storage, transfer and protection of personal data, and provide for significant penalties for non-compliance. In the United States, numerous states have enacted comprehensive privacy and data protection laws, and additional states are considering similar legislation, resulting in an increasingly complex and fragmented regulatory landscape that imposes enhanced consumer rights, heightened compliance obligations, and, in

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certain cases, private rights of action and statutory damages. Any failure to comply with GDPR, U.S. federal or state privacy and data protection laws, or other regulatory standards, could subject the Company to legal and reputational risks. Misuse of or failure to secure personal information could also result in violation of data privacy laws and regulations, proceedings against the Company by governmental entities or others, damage to the Company's reputation and credibility, and could have a material adverse effect on the Company's business and results of operations.

The Company is in the process of transitioning the Company's Systems, Applications and Products and other critical systems to cloud-based technologies. As the Company transitions to cloud-based technologies, the Company may be exposed to additional cyber threats as the Company migrates from legacy systems to cloud-based solutions. The Company's increased dependence on third parties for cloud-based systems may also subject the Company to further cyber threats. In addition, disruptions, outages, service interruptions or security incidents affecting cloud service providers could impair the Company's ability to access critical systems and data. Concentration of services with a limited number of cloud providers may increase these risks. There can be no assurance that the Company will not suffer a material adverse effect resulting from vulnerabilities in widely deployed software used by third parties.

***The rapid development and adoption of artificial intelligence technologies, including AI-driven search tools, may adversely affect our product visibility, competitive position and results of operations.***

The rapid development and adoption of artificial intelligence ("AI") technologies are transforming the retail, consumer products and e-commerce industries. Retailers, online marketplaces and search platforms are increasingly utilizing AI-driven search and recommendation tools that influence how consumers discover and evaluate products. Changes in these technologies may affect the visibility, ranking and prominence of our products on third-party e-commerce platforms or in online search results. If AI-driven search or recommendation systems reduce traffic to our product listings or favor competitors' products, our sales volumes, brand visibility and results of operations could be adversely affected.

We and our third-party service providers may also use AI tools in areas such as marketing content, demand forecasting, inventory management and product development. AI systems may produce inaccurate, biased or otherwise flawed outputs due to deficiencies in algorithms or training data, which could result in inaccurate forecasts, operational disruptions, excess inventory or stockouts, increased costs, lost sales opportunities or reputational harm.

In addition, the use of AI presents legal, regulatory, intellectual property, cybersecurity and data privacy risks. AI-generated outputs may infringe third-party rights or incorporate proprietary information in unintended ways, and the legal and regulatory landscape governing AI is rapidly evolving. Compliance with new or changing requirements may increase our costs or limit our ability to deploy AI technologies effectively. If our use of AI, or that of retailers, marketplaces or other business partners, results in operational, legal or reputational harm, our business, financial condition and results of operations could be adversely affected.

***The Company sells consumer products which involve an inherent risk of product liability claims.***

The marketing of certain of the Company's consumer products involve an inherent risk of product liability claims or recalls or other regulatory or enforcement actions initiated by the U.S. Consumer Product Safety Commission, by governmental or regulatory authorities in the United Kingdom, the European Union and other jurisdictions in which the Company's products are sold, by other regulatory authorities or through private causes of action. The Company has in the past, and may have in the future, recalls (both voluntary and involuntary) of its products. Any defects in products the Company markets could harm the Company's reputation, adversely affect its relationship with its customers and decrease market acceptance of the Company's products and the strength of the brand names under which the Company markets such products. Potential product liability claims may exceed the amount of the Company's insurance coverage (which is subject to self-insured retention amounts) and could materially damage the Company's business and its financial condition. In addition, the Company's insurance policies may contain exclusions, limitations or deductibles that could limit available coverage, and coverage may not be available on commercially reasonable terms in the future. Additionally, the Company's product standards could be impacted by new or revised environmental rules and regulations or other social initiatives.

***The Company may incur material costs due to environmental liabilities which could have a material adverse effect on the Company's business, financial condition and results of operations.***

The Company is subject to a broad range of federal, state, local, foreign and multi-national laws and regulations relating to the environment. These include laws and regulations that govern:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• discharges into the air, water and land;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the handling and disposal of solid and hazardous substances and wastes; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• remediation of contamination associated with release of hazardous substances at the Company's facilities and at off-site disposal locations.

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The Company may incur material costs to comply with increasingly stringent environmental laws and enforcement policies. Moreover, there are proposed international accords and treaties, as well as federal, state and local laws and regulations, which would attempt to control or limit the causes of climate change, including the effect of greenhouse gas emissions on the environment. In the event that the U.S. government or foreign governments enact new climate change laws or regulations or make changes to existing laws or regulations, compliance with applicable laws or regulations may result in increased manufacturing costs for the Company's products, such as by requiring investment in new pollution control equipment or changing the ways in which certain of the Company's products are made. The Company may incur some of these costs directly, while other costs may be passed on to the Company from its third-party suppliers. The Company also may incur costs associated with government inquiries and investigations. For example, in August 2021 a wholly-owned subsidiary of the Company received a Notice of Liability from the Department of Justice on behalf of the EPA. Negotiations in connection with the Notice culminated in a Consent Decree for Remedial Design and Remedial Action at Operable Unit One of the San German Groundwater Contamination Site ("Consent Decree"). For further discussion of the Company's legal proceedings refer to NOTE 13 — COMMITMENTS AND CONTINGENCIES to the Company's consolidated financial statements included in this Annual Report on Form 10-K. Any finding that the Company is not in compliance with applicable environmental laws and regulations or any new laws and regulations in the future could have a material adverse effect on the Company's business, financial condition and results of operations.

***The Company' executives and other key employees are critical to the Company's success. The loss of and/or failure to attract and maintain its highly skilled employees could adversely affect the Company's business.***

The Company's success depends, in part, on the efforts and skills of its executives and other key employees. The Company's key employees are experienced and highly qualified in the housewares industry. The loss of any of the Company's executive officers or other key employees could harm the business and the Company's ability to timely achieve its strategic initiatives. The Company's success also depends, in part, on its ability to identify, hire and retain other skilled personnel. The Company's industry is characterized by a high level of employee mobility and aggressive recruiting among competitors for personnel with successful track records and increasing competition for talent, including in technology, digital commerce and logistics roles. In addition, broader labor market conditions, including wage inflation, evolving employee expectations regarding remote or flexible work arrangements, and changing immigration or employment regulations, may further increase the Company's costs and retention challenges. The Company may not be able to attract and retain skilled personnel or may incur significant costs in order to do so. Any failure to effectively manage succession planning, talent development and retention could disrupt operations, delay strategic initiatives and adversely affect the Company's financial performance.

***As a result of the Company's prior acquisition of Filament, Taylor Parent has significant influence over the Company and its interests may conflict with the Company's or its stockholders in the future.***

As a result of the issuance of common stock to Taylor Parent, Taylor Parent has significant influence over the Company. Going forward, Taylor Parent's degree of control will depend on, among other things, its level of ownership of the Company's common stock and its ability to exercise certain rights under the terms of the Stockholders Agreement that the Company entered into with Taylor Parent in connection with the acquisition and merger agreement.

Under the Stockholders Agreement, for so long as Taylor Parent continues to beneficially own at least 50% of the shares it received at the consummation of the acquisition, neither the Company nor any of its subsidiaries may take any of the following actions without the approval of the directors designated by Taylor Parent, such approval not to be unreasonably withheld: (i) enter into any agreement for a transaction that would result in a change of control of the Company; (ii) consummate any transaction for the sale of all or substantially all of the Company's assets; (iii) file for reorganization pursuant to Chapter 11, or for liquidation pursuant to Chapter 7, of the U.S. Bankruptcy Code; (iv) liquidate or dissolve the business and affairs of the Company; (v) take any Board of Directors action to seek an amendment to the Company's Certificate of Incorporation or approve, or recommend that the Company's stockholders approve, an amendment to the Company's Amended and Restated Bylaws, except as required by Delaware Law (as defined in the merger agreement) or other applicable law and other than amendments that would not materially and disproportionately affect Taylor Parent; (vi) incur additional debt in excess of $100 million in the aggregate, subject to certain exceptions; (vii) acquire or dispose of assets or a business, in each case with an individual value in excess of $100 million; or (viii) adopt a stockholder rights plan that does not exempt as "grandfathered persons" the stockholders party to the Stockholders Agreement and their affiliates from being deemed "acquiring persons" due to their beneficial ownership of the common stock of the Company upon the public announcement of adoption of such stockholder rights plan (it being understood that no such plan shall restrict any stockholder party to the Stockholders Agreement or its affiliates from acquiring, in the aggregate, common stock up to the level of their aggregate percentage beneficial ownership as of the public announcement of the adoption of such stockholder rights plan).

Accordingly, Taylor Parent's influence over the Company and the consequences of such control could have a material adverse effect on the Company's business and business prospects and negatively impact the trading price of its common stock.

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**Item 1B. Unresolved Staff Comments**

None.

**Item 1C. Cybersecurity**

***Risk management and strategy***

The Company recognizes the critical importance of developing, implementing, and maintaining robust cybersecurity measures to safeguard its information systems and to protect the confidentiality, integrity, and availability of its data.

The Company has integrated cybersecurity risk management into its broader enterprise risk management ("ERM") through defined training and incident response plans. The incident response plan defines the objectives, roles and responsibilities and scope of our incident response program, is designed to detect actual or potential cybersecurity events and is triggered by Endpoint Detection and Response ("EDR") system behavior monitoring. Once initiated, the incident response plan consists of several phases, which includes i) detecting a significant observable event, ii) examining a security related event with potential negative IT consequences for the company and iii) analyzing the risk of the event and the degree of remediation required. The Company has developed an incident management plan that operates within the incident response plan to help define the objectives, roles, responsibilities, and scope of our incident response plan.

In addition, the Company's training and response methodology includes regular end user cybersecurity updates, phishing tests and online trainings. We believe that these measures helps promote a company-wide culture of appropriate cybersecurity risk management, as well as ensure that cybersecurity considerations are an integral part of the Company's ERM decision-making processes at every level. The Company considers industry best practices to continuously evaluate and address cybersecurity risks in alignment with its business objectives and operational needs.

The full Board of Directors is responsible for the oversight of the Company's cybersecurity risk management. The Board is updated periodically by management, including the EVP, Global Supply Chain & Import, regarding the Company's efforts in managing risks associated with cybersecurity threats.

The Company's Infrastructure Director is responsible for managing cybersecurity risks, including the prevention, detection, mitigation, and remediation of cybersecurity incidents. The Infrastructure Director has 20 years of experience in the creation and management of enterprise security risk programs. The Infrastructure Director reports to the EVP, Global Supply Chain & Import, who oversees the Company's management of cybersecurity risk. Through these activities and monitoring, both internally and externally, any events or incidents identified will be escalated to the appropriate Business Team Member in accordance with the Company's Incident Management Plan.

The Company engages with third-party experts, including cybersecurity focused Security Operations Center (SOC) and leading-edge EDR providers, to assist in evaluating and detecting security risk and initiate corrective actions. These partnerships enable the Company to leverage specialized knowledge and insights, ensuring cybersecurity strategies and processes remain aligned with industry best practices. The collaboration with these third parties includes regular audits, threat assessments, and consultation on security enhancements.

The Company uses third-party service providers in various functions throughout its business. The Company has stringent processes to oversee and manage risk with these third parties. The Company's process includes risk assessment activities, such as security assessments of all third-party providers, policies such as "minimum required access" to ensure compliance with current cybersecurity standards and monitoring activities, such as the review of potential cyber breaches announcements made by the third-party service providers.

Notwithstanding the approach we take to cybersecurity risk management, we may be unsuccessful in preventing or mitigating a cybersecurity incident that could have a material adverse effect on us. While the Company maintains cybersecurity insurance, the costs related to cybersecurity threats or disruptions may not be fully insured. See Item 1A. "Risk Factors" for a discussion of cybersecurity risks.

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**Item 2. Properties** 

The following table lists the principal properties at which the Company operated its business at December 31, 2025:

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| | | | |
|:---|:---|:---|:---|
| **Location** | **Description** | **Size<br>(square feet)** | **Owned/<br>Leased** |
| Rialto, California <sup>(1)</sup> | West Coast warehouse and distribution facility | 703000 | Leased |
| Robbinsville, New Jersey <sup>(1)(4)</sup> | Principal East Coast warehouse and distribution facility | 700000 | Leased |
| Aston, England <sup>(2)</sup> | Offices, showroom, warehouse and distribution facility | 250000 | Leased |
| Winchendon, Massachusetts <sup>(1)</sup> | Warehouse and distribution facility, and spice packing line | 175000 | Owned |
| Garden City, New York <sup>(3)</sup> | Corporate headquarters/main showroom | 159000 | Leased |
| Las Cruces, New Mexico <sup>(1)</sup> | Offices, warehouse and distribution facility | 56000 | Leased |
| San Germán, Puerto Rico <sup>(1)</sup> | Sterling silver manufacturing facility | 55000 | Leased |
| Medford, Massachusetts <sup>(1)</sup> | Offices, showroom, warehouse and distribution facility | 44000 | Leased |
| Shanghai, China <sup>(3)</sup> | Offices | 21700 | Leased |
| Oak Brook, Illinois <sup>(1)</sup> | Offices | 18000 | Leased |
| Seattle, Washington <sup>(1)</sup> | Offices | 17500 | Leased |
| New York, New York <sup>(1)</sup> | Offices and showrooms | 12000 | Leased |
| Chihuahua, Mexico <sup>(1)</sup> | Manufacturing facility | 12000 | Leased |
| Atlanta, Georgia <sup>(1)</sup> | Showrooms | 11000 | Leased |
| Guangzhou, China <sup>(3)</sup> | Offices | 10000 | Leased |
| Bentonville, Arkansas <sup>(1)</sup> | Offices and showroom | 7000 | Leased |
| Pawtucket, Rhode Island <sup>(1)</sup> | Offices and showroom | 4900 | Leased |
| Menomonee Falls, Wisconsin <sup>(1)</sup> | Showroom | 4000 | Leased |
| Tianjin, China <sup>(3)</sup> | Offices | 2400 | Leased |
| Minneapolis, Minnesota <sup>(1)</sup> | Offices | 1956 | Leased |
| Kowloon, Hong Kong <sup>(3)</sup> | Offices | 1814 | Leased |
| Issaquah, Washington <sup>(1)</sup> | Offices and showroom | 1125 | Leased |

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<sup>(1)</sup> Location primarily used by the U.S. segment.

<sup>(2)</sup> Location used by the International segment.

<sup>(3)</sup> Location used by both segments.

<sup>(4)</sup> In January 2025, the Company entered into a lease agreement for warehouse and distribution space in Hagerstown, Maryland (the "Hagerstown Facility"). The Company expects the lease to commence in the second quarter of 2026 and the facility to be fully operational in the third quarter of 2026. The Facility will serve as the Company's primary East Coast distribution facility primarily for its U.S. segment, which will replace the Company's existing Robbinsville, New Jersey facility, the lease for which expires in November 2026.

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**Item 3. Legal Proceedings**

For a description of our legal proceedings, please see NOTE 13 — COMMITMENTS AND CONTINGENCIES, to the Company's consolidated financial statements included in this Annual Report on Form 10-K.

**Item 4. Mine Safety Disclosure**

Not applicable.

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**PART II**

**Item 5. Market For Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities**

The Company's common stock is traded under the symbol "LCUT" on the Nasdaq Global Select Market ("Nasdaq").

At February 28, 2026, the Company estimates that there were approximately 3,645 record holders of the Company's common stock.

The Company is authorized to issue 100 shares of Series A Preferred stock and 2,000,000 shares of Series B Preferred stock, none of which were issued or outstanding at December 31, 2025.

For a discussion of dividends paid by the Company in 2025 and 2024, refer to Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources – Dividends. The Board of Directors currently intends to continue paying cash dividends for the foreseeable future, although the Board of Directors may in its discretion determine to modify or eliminate such dividends at any time.

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**PERFORMANCE GRAPH**

The following chart compares the cumulative total return on the Company's common stock with the Nasdaq Market Index, the Hemscott Group Index for Housewares & Accessories, the Company's peer group, which is comprised of companies that we believe have comparable characteristics and are in the same industry or line-of-business. The comparisons in this chart are required by the SEC and are not intended to forecast or be indicative of the possible future performance of the Company's common stock.

![image.jpg](lcut-20251231_g1.jpg)

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|:---|:---|:---|:---|:---|
| **Date** | **Lifetime<br>Brands, Inc.** | **Hemscott<br>Group Index** | **Peer<br>Group** | **Nasdaq<br>Market<br>Index** |
| 12/31/2020 <sup>(1)(2)</sup> | $100.00 | $100.00 | $100.00 | $100.00 |
| 12/31/2021 | $106.26 | $106.74 | $116.56 | $122.18 |
| 12/31/2022 | $51.26 | $66.62 | $69.13 | $82.43 |
| 12/31/2023 | $46.67 | $46.42 | $77.70 | $119.22 |
| 12/31/2024 | $42.03 | $54.67 | $56.81 | $154.48 |
| 12/31/2025 | $29.26 | $22.07 | $50.50 | $187.14 |

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<sup>(1)</sup> The graph assumes $100 was invested as of the close of trading on December 31, 2020 and dividends were reinvested. Measurement points are at the last trading day of each of the fiscal years ended December 31, 2021, 2022, 2023, 2024 and 2025. The material in this chart is not soliciting material, is not deemed filed with the SEC and is not incorporated by reference in any filing of the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, irrespective of any general incorporation by reference language in such filing. A list of the companies included in the Company's Hemscott Group Index will be furnished by the Company to any stockholder upon written request to the Chief Financial Officer of the Company. Peer group comprises of The Buckle, Inc., Delta Apparel, Inc., Unifi, Inc., Universal Electronics Inc., iRobot Corporation, Hamilton Beach Brands Holding Company, Helen of Troy Limited, Vera Bradley, Inc., Johnson Outdoors Inc., Lands' End, Movado Group, Inc., Oxford Industries, Inc., JAKKS Pacific, Inc., YETI Holdings, Inc., Solo Brands, Inc., Superior Group of Companies.

<sup>(2)</sup> The graph was prepared by Zacks Investment Research, Inc. Used with permission. All rights reserved. Copyright 1980-2026. Index Data: Copyright NASDAQ OMX, Inc. Used with permission. All rights reserved.

**Item 6. [Reserved]**

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**Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations**

*The following discussion should be read in conjunction with the consolidated financial statements for the Company and Notes thereto set forth in Item 15. This discussion contains forward-looking statements relating to future events and the future performance of the Company based on the Company's current expectations, assumptions, estimates and projections about it and the Company's industry. These forward-looking statements involve risks and uncertainties. The Company's actual results and timing of various events could differ materially from those anticipated in such forward-looking statements as a result of a variety of factors, as more fully described in this section and elsewhere in this Annual Report including those discussed under "Disclosures Regarding Forward-Looking Statements," "Risk Factors Summary" under Item 1A "Risk Factors" and under Item 7A "Quantitative and Qualitative Disclosures Regarding Market Risk." The Company undertakes no obligation to update publicly any forward-looking statements for any reason, even if new information becomes available or other events occur in the future, other than as required by law.*

The discussion focuses on the results of the year ended December 31, 2025 compared to the year ended December 31, 2024. For a discussion of the year ended December 31, 2024 compared to December 31, 2023, please refer to "Management's Discussion and Analysis of Financial Condition and Results of Operations", in Part II, Item 7 of the Company's Annual Report on Form 10-K for the year ended December 31, 2024.

**ABOUT THE COMPANY**

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

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

**BUSINESS SEGMENTS**

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 has segmented its operations to reflect the manner in which management reviews and evaluates its results of operations.

**SEASONALITY**

The Company's business and working capital needs are seasonal, with a majority of sales occurring in the third and fourth quarters. In 2025, 2024 and 2023, net sales for the third and fourth quarters accounted for 58%, 58% and 57% of total annual net sales, respectively. In anticipation of the pre-holiday shipping season, inventory levels typically increase primarily in the June through October time period.

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

**RESTRUCTURING**

During 2025, the Company's International segment incurred $0.3 million of restructuring expense related to severance associated with the reorganization of the International segment's workforce. The reorganization was undertaken in connection with Project Concord and primarily affected the structure of the International segment's merchandising and sales workforce.

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**RECENT DEVELOPMENTS** 

*Tariff and Supply Chain Considerations*

The Company sources almost all of its product from third-party manufacturers outside the U.S., primarily in China. This geographic concentration in suppliers exposes the Company to risks associated with doing business globally, including risks relating to changes in U.S. tariff and trade policies. New or increased tariffs, quotas, embargoes, or other trade barriers could adversely impact our supply chain and cost structure. To mitigate the impact of the tariffs imposed by the U.S. administration during 2025, the Company has negotiated price increases to its U.S. customers, negotiated lower product costs with its foreign suppliers and pursues diversification of its foreign sourced products to countries that are expected to be subject to lower tariffs. The Company's tariff mitigation strategy is intended to maintain the Company's gross margin dollars and therefore, may result in a decline in gross margin percentage. Net sales for fiscal 2025 were negatively impacted by softening consumer discretionary demand, as tariff-related uncertainty and price increases reduced retail ordering volume. For the full fiscal year 2025, U.S. gross margin percentage declined 100 basis points compared to 2024. This decline was at least in part a result of the combined impact of tariffs offset by our mitigation strategy. We expect continued margin pressure through the first half of 2026 as higher-cost inventory is sold through, reflecting the full impact of these tariffs.

On February 20, 2026, the U.S. Supreme Court held that the U.S. administration's imposition of tariffs unlawful pursuant to the International Emergency Economic Powers Act ("IEEPA") was unlawful, striking down the 10% global baseline tariff, as well as the higher tariffs imposed on certain U.S. trading partners. The U.S. Supreme Court's ruling did not affect all of the recently imposed tariffs, including those imposed following trade remedy investigations by the Department of Commerce or the U.S. Trade Representative. Nor does it prohibit the imposition of future tariffs through alternative trade authorities available to the U.S. administration. On February 20, 2026, shortly after the announced U.S. Supreme Court decision, the U.S. administration announced that it would be imposing a new 10% global tariff for a period of 150 days pursuant to a balance-of-payments provision in Section 122 of the Trade Act of 1974, to become effective February 24, 2026. The U.S. administration further announced that it would begin additional trade remedy investigations into unidentified trading partners pursuant to Section 301 of the Trade Act of 1974 and with respect to certain unidentified product sectors pursuant to Section 232 of the Trade Expansion Act of 1962. The U.S. Government has stated publicly that companies will need to litigate to obtain refunds, which could take years and neither the U.S. Customs and Border Protection ("CBP") nor the Court of International Trade has to date issued any guidance on refunds, making it challenging to predict if, and when, any refunds will, in fact, be obtained and whether refunds may be paid in cash or credits against future duties or tariffs.

We cannot predict what additional changes to trade policy will be made by the U.S. administration or Congress, including whether existing tariff policies will be maintained or modified, what products may be subject to such policies, or whether the entry into new bilateral or multilateral trade agreements will occur, nor can we predict the effects that any such changes would have on our business, capital expenditures, and results of operations. We are actively monitoring the rapidly evolving tariff and global trade policies that become effective, as well as potential retaliatory actions by other countries.

If tariffs rates were to increase further and the Company is unable to mitigate the impact of the increase in cost, it would result in lower gross margin from the sale of its products. The broader macroeconomic impacts related to the changes in tariff policies including potential mitigation efforts by retailers may negatively impact consumer spending and buying patterns of the Company's products. This could materially adversely affect the Company's results of operations and financial condition.

*Hagerstown Facility*

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"). In connection with the relocation, the Company expects to incur exit costs of approximately $7.0 million for employee severance, certain employee relocation costs, and remaining lease costs for the Robbinsville Facility, which costs are expected to be incurred in 2026.

The Hagerstown Facility will require capital expenditures for equipment and certain leasehold improvements of approximately $9.3 million, of which $7.0 million remains to be purchased in 2026. Start-up costs are estimated to be approximately $7.0 million, which includes recruitment, relocation of inventory, set up costs and lease expenses prior to the Hagerstown Facility being fully operational. These one-time costs are expected to be incurred in 2026. The Company expects that the Hagerstown Facility will be fully operational by the third quarter of 2026. Additionally, in connection with the relocation to the Hagerstown Facility, the Company will receive tax abatement and incentives over the term of the Lease from the State of Maryland and Washington County, Maryland totaling approximately $13.1 million. These incentives include real property tax abatement, employee state withholding tax credit, conditional grants and income tax credits.

*Project Concord*

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

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workforce in connection with Project Concord. The reorganization primarily affected the structure of the International segment's merchandising and sales workforce. The restructuring expenses related to severance associated with the reorganization of $0.3 million was recorded in 2025. The Company expects to record approximately $0.7 million, of restructuring charges in connection with the Project Concord, for severance and related costs in 2026.

**EFFECT OF ADOPTION OF ACCOUNTING PRINCIPLES** 

**Adopted accounting pronouncements**

In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Updated No. ("ASU") 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in ASU 2023-09 address investor requests for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. The Company adopted this ASU on a retrospective basis effective January 1, 2025. Refer to NOTE 11 — INCOME TAXES for the inclusion of new disclosures required.

**New accounting pronouncements**

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

In 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.

**RESULTS OF OPERATIONS**

**YEAR ENDED DECEMBER 31, 2025 COMPARED TO YEAR ENDED DECEMBER 31, 2024.**

The following table sets forth statement of operations data of the Company as a percentage of net sales for the periods indicated below.

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| | | |
|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2025** | **2024** |
| Net sales | 100.0% | 100.0% |
| Cost of sales | 62.9 | 61.8 |
| Gross margin | 37.1 | 38.2 |
| Distribution expenses | 11.4 | 10.8 |
| Selling, general and administrative expenses | 22.0 | 23.4 |
| Goodwill impairment | 5.1 |  |
| Restructuring expenses | 0.1 |  |
| (Loss) income from operations | (1.5) | 4.0 |
| Interest expense | (3.1) | (3.3) |
| Mark to market loss on interest rate derivatives | (0.1) | (0.1) |
| Gain on extinguishments of debt, net |  |  |
| Loss on equity securities |  | (2.0) |
| (Loss) income before income taxes and equity in losses | (4.7) | (1.4) |
| Income tax benefit (provision) | 0.5 | (0.5) |
| Equity in losses, net of taxes | 0.0 | (0.3) |
| Net loss | (4.2)% | (2.2)% |

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**MANAGEMENT'S DISCUSSION AND ANALYSIS**

**2025 COMPARED TO 2024**

**Net Sales**

Net sales for the year ended December 31, 2025 were $647.9 million, a decrease of $35.1 million, or 5.1%, compared to net sales of $683.0 million in 2024. In constant currency, a non-GAAP financial measure, which excludes the impact of foreign exchange fluctuations and was determined by applying 2025 average rates to 2024 local currency amounts, net sales decreased $36.9 million, or 5.4%, as compared to consolidated net sales in the corresponding period in 2024.

Net sales for the U.S. segment in 2025 were $591.2 million, a decrease of $36.0 million, or 5.7%, compared to net sales of $627.2 million in 2024. For the year ended December 31, 2025, net sales were unfavorably impacted by lower sales volume as price increases softened consumer demand, partially offset by higher selling prices, reflecting the price increases for the Company's U.S. customers that became effective during the third quarter of 2025.

Net sales for the U.S. segment's Kitchenware product category in 2025 were $374.9 million, a decrease of $9.4 million, or 2.4%, compared to net sales of $384.3 million in 2024. The net sales decrease in the U.S. segment's Kitchenware product category was driven by lower sales for cutlery and board, bakeware products, barware products and kitchen tools. The decrease was partially offset by higher sales for kitchen measurement products driven by a new warehouse program in 2025.

Net sales for the U.S. segment's Tableware product category in 2025 were $122.2 million, a decrease of $10.6 million, or 8.0%, compared to net sales of $132.8 million for 2024. The decrease was attributable primarily to lower warehouse club programs in 2025 for dinnerware and flatware programs not repeated. This decline was partially offset by higher sales for dinnerware in the dollar channel.

Net sales for the U.S. segment's Home Solutions products category in 2025 were $94.1 million, a decrease of $16.0 million, or 14.5%, compared to net sales of $110.1 million in 2024. The decrease was attributable primarily to lower sales of hydration products and bath measurement products. The decrease was partially offset by higher sales in the back-to-school lunch box category.

Net sales for the International segment in 2025 were $56.7 million, an increase of $0.9 million, or 1.6%, compared to net sales of $55.8 million for 2024. In constant currency, a non-GAAP financial measure, which excludes the impact of foreign exchange fluctuations and was determined by applying 2025 average exchange rates to 2024 local currency amounts, net sales decreased approximately 1.7%. The increase in net sales was driven by favorable foreign currency translation effects.The decrease in constant currency was driven by lower sales in the U.K., partially offset by higher sales in the Asia Pacific region.

**Gross margin**

Gross margin for 2025 was $240.7 million, or 37.1%, compared to $260.7 million, or 38.2%, for the corresponding period in 2024.

Gross margin for the U.S. segment was $220.8 million, or 37.3%, for 2025, compared to $240.3 million, or 38.3%, for 2024. The decrease in gross margin percentage was primarily attributable to higher tariffs and product costs, which more than offset the benefit of higher selling prices. The decrease in gross margin dollars was driven by lower sales volume.

Gross margin for the International segment was $19.9 million, or 35.1%, for 2025, compared to $20.4 million, or 36.6%, for 2024. The decrease in gross margin percentage was primarily due to a higher mix of sales incentives and customer allowances during the period.

**Distribution expenses**

Distribution expenses were $74.1 million for the 2025 period as compared to $73.8 million for the 2024 period. Distribution expenses as a percentage of net sales were 11.4% and 10.8% in 2025 and 2024.

Distribution expenses as a percentage of net sales for the U.S. segment were approximately 10.0% in 2025 and 9.6% in 2024. Distribution expenses in 2025 and 2024 included $0.3 million and $1.0 million, respectively, for redesign costs related to the Company's U.S. warehouses. As a percentage of sales shipped from the Company's warehouses, excluding warehouse redesign expenses, distribution expenses were 9.6% and 9.7% for 2025 and 2024. The decrease in distribution expenses as a percentage of sales was primarily attributable to lower depreciation expense due to changes in asset retirement obligation estimates in the prior year, improved labor management efficiencies and decreased employee expenses, net of higher software costs, due to the launch of a new warehouse management system at the Company's West Coast distribution center in September 2024.

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Distribution expenses as a percentage of net sales for the International segment were approximately 26.3% in 2025 and 24.7% in 2024, respectively. As a percentage of sales shipped from the Company's international warehouses, distribution expenses were 23.1% and 22.1% for 2025 and 2024, respectively. The increase in distribution expenses as a percentage of sales was primarily attributable to higher warehouse expenses related to the expanded distribution of the Company's products within the Asia Pacific region, partially offset by a decrease in freight-out expenses due to customer mix.

**Selling, general and administrative expenses** 

Selling, general and administrative ("SG&A") expenses for 2025 were $142.4 million, a decrease of $17.4 million, or 10.9%, as compared to $159.8 million for 2024.

SG&A expenses for 2025 for the U.S. segment were $117.5 million, a decrease of $5.5 million, or 4.5%, compared to $123.0 million for 2024. As a percentage of net sales, SG&A expenses were 19.9% for 2025, compared to 19.6% for 2024. The decrease in the expenses was attributable to lower employee expenses, including incentive compensation, partially offset by an increase in amortization expense related to an indefinite trade name, which was reclassified to a definite lived trade name in the fourth quarter 2024. The increase in selling, general and administrative expenses as a percentage of net sales, was attributable to the impact of fixed costs on lower net sales.

SG&A expenses for 2025 for the International segment were $13.9 million, a decrease of $3.3 million, or 19.2%, compared to $17.2 million for 2024. As a percentage of net sales, SG&A expenses were 24.5% for 2025, compared to 30.8% for 2024. The decrease in the expenses was primarily attributable to foreign currency exchange gains, lower employee expenses, decreases in advertising expenses and commissions, and the prior year expense included penalties related to tax filings.

Unallocated corporate expenses for 2025 were $11.0 million, compared to $19.6 million for 2024. The decrease in expenses was driven by the recognition of a net legal settlement gain of $6.4 million in the current period, lower incentive compensation, partially offset by higher professional fees and legal expenses.

**Goodwill impairment** 

During the second quarter of 2025, the Company's qualitative assessment of goodwill indicated triggering events had occurred in its U.S. reporting unit. The Company performed an interim impairment test of the goodwill in the U.S. reporting unit as of June 30, 2025, that resulted in a $33.2 million non-cash goodwill impairment charge.

**Restructuring expenses**

During 2025, the Company's International segment incurred $0.3 million of restructuring expense related to severance associated with the reorganization of the International segment's workforce. The reorganization was undertaken in connection with Project Concord and primarily affected the structure of the International segment's merchandising and sales workforce.

**Interest expense**

Interest expense for 2025 was $20.0 million, compared to $22.2 million for 2024. The decrease in expense was a result of lower average outstanding borrowings in the current period, and lower interest rates on outstanding borrowings.

**Mark to market loss on interest rate derivatives**

Mark to market loss on interest rate derivatives was $0.8 million and $0.5 million, respectively, for the year ended December 31, 2025, and 2024. The mark to market amount represents the change in the fair value on the Company's interest rate derivatives that have not been designated as hedging instruments for accounting purposes. These derivatives were entered into for purposes of locking-in a fixed interest rate on the Company's variable interest rate debt. As of December 31, 2025, the intent of the Company is to hold these derivative contracts until their maturity.

**Loss on equity securities**

Loss on equity securities was $14.2 million for the year ended December 31, 2024. In the second quarter of 2024, the Company lost significant influence over its investment in Vasconia and discontinued the equity method of accounting. This change resulted in the reclassification of previously recognized accumulated other comprehensive losses to the investment balance and subsequently resulted in a non-cash loss of $14.2 million, to reduce the investment to its fair value. NOTE 5 — EQUITY INVESTMENTS for additional information.

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**Income tax benefit (provision)**

The income tax benefit was $3.3 million in 2025 and the income tax provision was $3.3 million in 2024. The Company's effective tax rate for 2025 was 10.9%, compared to its effective tax rate of (34.2)% for 2024. The negative rate for 2024 reflects tax expense on pretax financial reporting loss. The effective tax rate in 2025 differs from the federal statutory rate primarily due to UK foreign losses for which no tax benefit is recognized as such amounts are fully offset with a valuation allowance, and the provision of valuation allowances against current and cumulative losses in Asia, Australia, and New Zealand. The effective tax rate in 2024 differs from the federal statutory rate primarily due to state and local tax expense, nondeductible expenses and losses, and UK foreign losses for which no tax benefit is recognized as such amounts are fully offset with a valuation allowance, offset by a reduction in the Company's accrual for uncertain tax positions and the release of the valuation allowance on foreign losses in the Netherlands.

**Equity in losses, net of taxes**

Equity in losses of Vasconia, net of taxes, was $2.1 million for the year ended December 31, 2024.

**CRITICAL ACCOUNTING POLICIES AND ESTIMATES**

*Management's Discussion and Analysis of Financial Condition and Results of Operations* discusses the Company's audited consolidated financial statements which have been prepared in accordance with GAAP and with the instructions to Form 10-K and Article 10 of Regulation S-X. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management evaluates its estimates and judgments based on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The Company evaluates these estimates including those related to revenue recognition, allowances for doubtful accounts, reserves for sales returns and allowances and customer chargebacks, inventory mark-down provisions, estimates for unpaid healthcare claims, impairment of goodwill, tangible and intangible assets, stock compensation expense, accruals related to the Company's tax positions and tax valuation allowances. Actual results may differ from these estimates using different assumptions and under different conditions and changes in these estimates are recorded when known. The Company's significant accounting policies are more fully described in NOTE 1 — SIGNIFICANT ACCOUNTING POLICIES in the Notes to the consolidated financial statements included in Item 15. The Company believes that the following discussion addresses its most critical accounting policies, which are those that are most important to the portrayal of the Company's consolidated financial condition and results of operations and require management's most difficult, subjective and complex judgments.

**Goodwill, intangible assets and long-lived assets** 

Goodwill is not amortized but, instead, is subject to an annual impairment assessment on October 1. Additionally, if events or conditions were to indicate the carrying value of a reporting unit may not be recoverable, the Company would evaluate goodwill and other intangible assets for impairment at that time.

As it relates to the goodwill assessment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the quantitative goodwill impairment testing described in the FASB's ASC Topic 350, Intangibles – Goodwill and Other. If, after assessing qualitative factors, the Company determines that it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, then no further testing is performed for that reporting unit. However, if based on the Company's qualitative assessment it concludes that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, or if the Company elects to bypass the qualitative assessment, the Company will proceed with performing the quantitative impairment test.

The Company reviews goodwill impairment annually as of October 1st or when events or changes in circumstances indicate the carrying value of these assets might exceed their current fair values. For goodwill, impairment testing is based upon the best information available using a combination of the discounted cash flow method, a form of the income approach, and the guideline public company method, a form of the market approach.

The significant assumptions used under the income approach, or discounted cash flow method, are projected net sales, projected earnings before interest, tax, depreciation and amortization ("EBITDA") and the cost of capital. Projected net sales and projected EBITDA were determined to be significant assumptions because they are the primary drivers of the projected cash flows in the discounted cash flow fair value model. Cost of capital was also determined to be a significant assumption as it is the discount rate used to calculate the current fair value of those projected cash flows.

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

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

*Goodwill*

The carrying value of the goodwill for the U.S. reporting unit was zero as of December 31, 2025.

In the second quarter of 2025, the Company observed a sustained decline in the market valuation of the Company's common stock. Additionally, the Company's near term forecasts for the U.S. reporting unit were revised downward due to changes in retailer and consumer buying patterns, which were impacted by the recent changes in the U.S. tariff policies. Based on these factors the Company concluded that impairment indicators for the U.S. reporting unit were present as of June 30, 2025.

The company performed an interim impairment test of the goodwill in the U.S. reporting unit as of June 30, 2025 by comparing the fair value with its carrying value. The analysis was performed by using a discounted cash flow and market multiple method. Accordingly, this fair value measurement is classified as Level 3 since it is based primarily on unobservable inputs. Based upon the analysis performed, the Company's U.S. reporting unit goodwill was fully impaired and a $33.2 million non-cash goodwill impairment charge was recognized. The goodwill impairment charge was the result of the decline in the Company's near term forecasts that were revised downward due to the changes in retailer and consumer buying patterns and an increase to the company-specific risk premium, which is an input to the cost of capital assumption, to address the potential risks in the long-term forecast which remain uncertain at this time.

*Long-lived assets*

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.

**Revenue recognition**

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. 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 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.

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Payment terms vary by customer, but generally range from 30 to 90 days or at the point of sale for the Company's retail direct sales.

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

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**LIQUIDITY AND CAPITAL RESOURCES**

The Company's principal sources of funds consists of cash provided by operating activities, borrowings available under its revolving credit facility and from time-to-time working capital reductions. The Company's primary uses of funds consist of payments of principal and interest on its debt, working capital requirements, capital expenditures and dividends. From time-to-time uses also include acquisitions and repurchases of its common stock.

At December 31, 2025 and 2024, the Company had cash and cash equivalents of $4.3 million and $2.9 million, respectively, and working capital of $242.6 million at December 31, 2025, compared to $221.8 million at December 31, 2024. The current ratio (current assets to current liabilities) was 2.8 to 1.0 at December 31, 2025, compared to 2.5 to 1.0 at December 31, 2024. The current ratio has remained relatively consistent.

At December 31, 2025, borrowings under the Company's ABL Agreement were $54.1 million and $135.0 million was outstanding under the Term Loan. At December 31, 2024, borrowings under the Company's ABL Agreement were $42.7 million and $142.5 million was outstanding under the Term Loan.

Liquidity as of December 31, 2025 was $76.6 million, consisting of $4.3 million of cash and cash equivalents, $53.1 million of availability under the ABL Agreement, limited by the Term Loan financial covenant, and $19.2 million of available funding under the Receivables Purchase Agreement.

Inventory, a large component of the Company's working capital, is expected to fluctuate from period to period, with inventory levels higher primarily in the June through October time period. The Company also expects inventory turnover to fluctuate from period to period based on product and customer mix. Certain product categories have lower inventory turnover rates as a result of minimum order quantities from the Company's vendors or customer replenishment needs. Certain other product categories experience higher inventory turns due to lower minimum order quantities or trending sale demands. For the three months ended December 31, 2025 inventory turnover was 2.4 times, or 152 days, as compared to 2.4 times, or 150 days, for the three months ended December 31, 2024. Inventory turns have remained relatively consistent.

The Company believes that availability under the revolving credit facility under its ABL Agreement, cash on hand and cash flows from operations are sufficient to fund the Company's operations for the next 12 months. However, if circumstances were to adversely change, the Company may seek alternative sources of liquidity including debt and/or equity financing. However, there can be no assurance that any such alternative sources would be available or sufficient.

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

**Indebtedness**

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

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

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

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

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

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| | | |
|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2024** |
| Maximum aggregate principal allowed | $185588 | $176329 |
| &nbsp;&nbsp;Outstanding borrowings under the ABL Agreement | (54105) | (42693) |
| &nbsp;&nbsp;Standby letters of credit | (11564) | (8828) |
| Total availability under the ABL agreement | $119919 | $124808 |

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Availability under the ABL Agreement is limited to the lesser of the $200.0 million commitment 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 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 December 31, 2025, the availability under the ABL Agreement, limited by the Term Loan financial covenant, was $53.1 million.

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

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| | | |
|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2024** |
| Current portion of Term Loan: |  |  |
| &nbsp;&nbsp;Term Loan payment | $7500 | $7500 |
| &nbsp;&nbsp;Estimated unamortized debt issuance costs | (2478) | (2609) |
| **Total Current portion of Term Loan** | $5022 | $4891 |
| Non-current portion of Term Loan: |  |  |
| &nbsp;&nbsp;Term Loan, net of current portion | $127500 | $135000 |
| &nbsp;&nbsp;Estimated unamortized debt issuance costs | (1573) | (4051) |
| **Total Non-current portion of Term Loan** | $125927 | $130949 |

---

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

As of December 31, 2025, the future principal payments of the Term Loan are as follows (in thousands):

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| | |
|:---|:---|
| 2026 | $7500 |
| 2027 | 127500 |
| Total | $135000 |

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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

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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 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 0.5%, 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 December 31, 2025 was between 3.29% and 7.13%. The Company paid a commitment fee of 0.25% on the unused portion of the ABL Agreement during the year ended December 31, 2025.

The Term Loan bears interest, at the Company's option, at one of the following rates: (i) alternate base rate, defined, for any day, as the greater of (x) the prime rate, (y) a federal funds and overnight bank funding based rate plus 0.5% or (z) one-month Adjusted Term SOFR, but not less than 1.0% , plus 1.0%, plus a margin of 4.5% or (ii) Adjusted Term SOFR (Term SOFR plus the Term SOFR Adjustment) for the applicable interest period, but not less than 1.0%, plus a margin of 5.5%. The interest rate on outstanding borrowings under the Term Loan at December 31, 2025 was 9.35%.

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 December 31, 2025.

*Covenant Calculations*

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

*Non-GAAP financial measure*

Adjusted EBITDA is a non-GAAP financial measure within the meaning of Regulation G and Item 10(e) of Regulation S-K, each promulgated by the SEC. This measure is provided because management of the Company uses this financial measure in evaluating the Company's ongoing financial results and trends. Management also uses this non-GAAP information as an indicator of business performance. Adjusted EBITDA, as discussed above, is also one of the measures used to calculate financial covenants required to be provided to the Company's lenders pursuant to its Debt Agreements.

Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, the Company's financial performance measures prepared in accordance with GAAP. Further, the Company's non-GAAP information may be different from the non-GAAP information provided by other companies including other companies within the home retail industry.

The following is a reconciliation of net (loss) income as reported to adjusted EBITDA for the years ended December 31, 2025 and 2024 and each fiscal quarter of 2025 and 2024:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Year Ended** |
| | **March 31, 2025** | **June 30, 2025** | **September 30, 2025** | **December 31, 2025** | **December 31, 2025** |
| | | | (in thousands) | | |
| Net (loss) income as reported | $(4201) | $(39699) | $(1189) | $18152 | $(26937) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax (benefit) provision | (142) | (2782) | 2861 | (3220) | (3283) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 4915 | 5054 | 5013 | 5048 | 20030 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 5698 | 5437 | 5398 | 5315 | 21848 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on disposition of fixed assets |  |  | (94) |  | (94) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mark to market loss (gain) on interest rate derivatives | 527 | 220 | 8 | (1) | 754 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill impairment |  | 33237 |  |  | 33237 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock compensation expense | 1062 | 1044 | 994 | 201 | 3301 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal settlement gain, net<sup>(1)</sup> | (4578) |  |  |  | (4578) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Severance expense |  | 270 |  | 241 | 511 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition related expenses |  | 123 | 49 | 1799 | 1971 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring expenses |  |  | 304 | 24 | 328 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warehouse redesign expenses<sup>(2)</sup> |  | 139 | 76 | 48 | 263 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pro forma adjustments<sup>(3)</sup> |  |  |  |  | 3400 |
| Adjusted EBITDA<sup>(4)</sup> | $3281 | $3043 | $13420 | $27607 | $50751 |

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<sup>(1)</sup> For the year ended December 31, 2025, legal settlement gain, net included a net settlement of $6.4 million discussed in NOTE 13 — COMMITMENTS AND CONTINGENCIES, and adjusted for legal fees incurred from March 2, 2018 through March 31, 2025 of $1.8 million.

<sup>(2)</sup> For the year ended December 31, 2025, the warehouse redesign expenses were related to the U.S. segment.

<sup>(3)</sup> Pro forma adjustments represent the amount of operating expense reductions projected by the Company as a result of actions taken through December 31, 2025 or expected to be taken within 18 months of December 31, 2025, net of the benefits realized during the twelve months ended December 31, 2025. These actions include cost savings initiatives for the U.S. segment related to reductions in employee expenses (i.e., including terminated employees) and costs saving for the International segment related to Project Concord.

<sup>(4)</sup> Adjusted EBITDA is a non-GAAP financial measure that is defined in the Company's debt agreements. Adjusted EBITDA is defined as net (loss) income, adjusted to exclude income tax (benefit) provision, interest expense, depreciation and amortization, gain on disposition of fixed assets, mark to market loss (gain) on interest rate derivatives, goodwill impairment, stock compensation expense, legal settlement gain, net, and other items detailed in the table above that are consistent with exclusions permitted by our debt agreements.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Year Ended** |
| | **March 31, 2024** | **June 30, 2024** | **September 30, 2024** | **December 31, 2024** | **December 31, 2024** |
| | | | (in thousands) | | |
| Net (loss) income as reported | $(6260) | $(18167) | $344 | $8918 | $(15165) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on equity securities |  | 14152 |  |  | 14152 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity in losses, net of taxes | 2092 |  |  |  | 2092 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax provision (benefit) | 210 | (57) | 1507 | 1671 | 3331 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 5614 | 5157 | 5834 | 5603 | 22208 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 4939 | 4894 | 6408 | 6073 | 22314 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mark to market loss (gain) on interest rate derivatives | 174 | 82 | 928 | (718) | 466 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock compensation expense | 807 | 1037 | 1042 | 1034 | 3920 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition related expenses | 95 | 641 | 210 | 143 | 1089 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warehouse redesign expenses <sup>(1)</sup> | 18 | 35 | 662 | 249 | 964 |
| Adjusted EBITDA <sup>(2)</sup> | $7689 | $7774 | $16935 | $22973 | $55371 |

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<sup>(1)</sup> For the year ended December 31, 2024, the warehouse redesign expenses related to the U.S. segment.

<sup>(2)</sup> Adjusted EBITDA is a non-GAAP financial measure which is defined in the Company's debt agreements. Adjusted EBITDA is defined as net (loss) income, adjusted to exclude loss on equity securities, equity in losses, net of taxes, income tax provision (benefit), interest expense, depreciation and amortization, mark to market loss (gain) on interest rate derivatives, stock compensation expense, and other items detailed in the table above that are consistent with exclusions permitted by our debt agreements.

**Capital expenditures**

Capital expenditures for the year ended December 31, 2025 were $4.4 million.

**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 new interest rate swap agreements, each with an aggregate notion value of $25.0 million and expire in August 2027. These interest rate swaps have not been designated as accounting hedges and are intended to serve as cash flow hedges to economically hedge the Company's exposure to the variability in interest payments on a portion of its Term Loan borrowings. Accordingly, changes in fair value are recognized in earnings in the period incurred. The Company's total outstanding notional value of interest rate swaps was $50.0 million at December 31, 2025.

*Foreign Exchange Contracts*

To reduce the impact of changes in foreign currency exchange rates on its results, from time to time the Company is a party to certain foreign exchange contracts, primarily to offset the earnings impact related to fluctuations in foreign currency exchange rates associated

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with inventory purchases. The Company designates these contracts for accounting purposes as cash flow hedges. The Company purchases foreign currency forward contracts with terms less than 18 months. The aggregate gross notional value of foreign exchange contracts at December 31, 2025 and 2024 were zero and $8.0 million, respectively.

**Dividends**

Dividends were declared in 2025 and 2024 as follows:

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| | | | |
|:---|:---|:---|:---|
| **Dividend per share** | **Date declared** | **Date of record** | **Payment date** |
| $0.0425 | March 8, 2024 | May 1, 2024 | May 15, 2024 |
| $0.0425 | June 20, 2024 | August 1, 2024 | August 15, 2024 |
| $0.0425 | August 6, 2024 | November 1, 2024 | November 15, 2024 |
| $0.0425 | November 5, 2024 | January 31, 2025 | February 14, 2025 |
| $0.0425 | March 11, 2025 | May 1, 2025 | May 15, 2025 |
| $0.0425 | June 18, 2025 | August 1, 2025 | August 15, 2025 |
| $0.0425 | August 5, 2025 | October 31, 2025 | November 14, 2025 |
| $0.0425 | November 4, 2025 | January 30, 2026 | February 13, 2026 |

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On March 9, 2026, the Board of Directors declared a quarterly dividend of $0.0425 per share payable on May 15, 2026 to shareholders of record on May 1, 2026.

**Cash provided by operating activities** 

Net cash provided by operating activities was $7.6 million in 2025, compared to $18.6 million in 2024. The decrease from 2025 compared to 2024 was attributable to timing of payments for accounts payable and accrued expenses, partially offset by lower investment in inventory, and a net legal settlement gain received in the current period.

**Cash used in investing activities**

Net cash used in investing activities was $4.3 million in 2025, compared to $2.2 million in 2024. The increase in cash used in investment activities was driven by purchases of equipment for the Hagerstown Facility.

**Cash used in financing activities**

Net cash used in financing activities was $2.2 million in 2025 compared to $29.5 million in 2024. The change from 2025 compared to 2024 was attributable to higher net proceeds from the revolving credit facility in the 2025 period, compared to net repayments of revolving credit facility in the 2024 period.

**MATERIAL CASH REQUIREMENTS**

The Company's material cash requirements include the following:

**Debt**

As of December 31, 2025, the Company had an outstanding Term Loan facility, which matures on August 26, 2027, for an aggregate principal amount of $135 million, with $7.5 million amounts due within 12 months. Estimated future interest obligations associated with debt and interest rate swaps total $25.9 million, with $15.5 million payable within 12 months. The future interest obligations are estimated by assuming the amounts outstanding under the Company's debt agreements and the interest rates as of December 31, 2025 remain consistent to the end of the debt agreements. Actual amounts borrowed and interest rates may vary over time.

**Leases** 

The Company has operating leases for corporate offices, distribution facilities, manufacturing plants, and certain vehicles. As of December 31, 2025, the Company had fixed lease payment obligations of $68.6 million, with $19.3 million payable within 12 months.

**Royalties**

The Company has license agreements that require the payment of minimum royalties on sales of licensed products. As of December 31, 2025, the estimated minimum royalties payable under the noncancellable terms of these agreements amounted to $8.6 million payable within 12 months.

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**Post-retirement benefit**

The Company assumed retirement benefit obligations, which are paid to certain former executives of a business acquired in 2006. As of December 31, 2025, the estimated discounted obligations under the agreements with the former executives amounted to $4.7 million, with $0.4 million payable within 12 months.

**Wallace EPA Matter**

As of December 31, 2025, in connection with the Wallace EPA Matter, the Company's estimated remediation liability amounted to $5.3 million, with $0.8 million is expected to be paid within 12 months. The Company has provided financial assurance of $5.6 million in the form of a letter of credit.

**Hagerstown Facility Relocation**

In connection with the relocation of the Company's East Coast distribution center to the Hagerstown Facility the Company expects to incur the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) Fixed lease payment obligations of $123.4 million, with $3.7 million payable in 2026. The lease is expected to commence in April 2026.

ii) Capital expenditures of approximately $9.3 million related to equipment and certain leasehold improvements, with $7.0 million remaining to be purchased in the next 12 months.

iii) Estimated exit costs of $7.0 million, which are expected to be paid in the next 12 months. This includes employee severance, certain employee relocation costs and remaining lease costs for the Robbinsville Facility through the end of the term.

iv) The asset retirement obligations related to the Robbinsville warehouse of $1.4 million to be settled in the next 12 months.

iv) Estimated start-up costs of $7.0 million, which are expected to be paid in the next 12 months. This includes recruitment, relocation of inventory, set up costs and lease expenses prior to the Hagerstown Facility being fully operational.

**Item 7A. Quantitative and Qualitative Disclosures About Market Risk**

Market risk represents the risk of loss that may have an impact on the consolidated financial position, results of operations or cash flows of the Company. The Company is exposed to market risk associated with changes in interest rates and foreign currency exchange rates. The Company believes it has moderate exposure to these risks. The Company assesses market risk based on changes in interest rates and foreign currency exchange rates utilizing a sensitivity analysis that measures the potential loss in earnings and cash flows based on a hypothetical 10% or 100 basis point change in these rates.

The Company's functional currency is the U.S. dollar. The Company has foreign operations through its acquisitions, investments and strategic alliances in the U.K., the Netherlands, Mexico, Canada, Australia, New Zealand, Hong Kong and China; therefore, the Company is subject to increases and decreases value of its net investments due to fluctuations in foreign currency exchange rates. Additional transactions exposing the Company to exchange rate risk include sales, certain inventory purchases and operating expenses. Through its subsidiaries, portions of the Company's cash, trade accounts receivable, trade accounts payable are denominated in foreign currencies. In addition, certain ABL borrowings held by the Company's international subsidiaries are denominated in U.S. Dollar, which subjects the outstanding principal to fluctuations in exchange rates. For the year ended December 31, 2025, approximately 8% of the Company's net sales revenue was in foreign currencies, compared to 7% for the year ended December 31, 2024. These sales were primarily denominated in U.K. pounds, Euros, Canadian dollars and Australian dollars. The Company makes most of its inventory purchases from Asia and uses the U.S. dollar for such purchases. In the Company's consolidated statements of operations, foreign exchange gains and losses are recognized in SG&A expense. A hypothetical 10% change in exchange rates, with the U.S. dollar as the functional and reporting currency, would result in an increase of approximately $2.0 million in SG&A expenses.

To reduce the impact of changes in foreign currency exchange rates on its results, from time to time the Company is a party to certain foreign exchange contracts, primarily to offset the earnings impact related to fluctuations in foreign currency exchange rates associated with inventory purchases. The Company designates these contracts for accounting purposes as cash flow hedges. The Company purchases foreign currency forward contracts with terms less than 18 months. The aggregate gross notional value of foreign exchange contracts at December 31, 2025 and 2024 were zero and $8.0 million, respectively.

The Company's ABL Agreement and Term Loan bear interest at variable rates. The Credit Agreement provides for interest rates linked to one of the SOFR, the Prime Rate or the Federal Funds Rate; therefore, the Company is subject to increases and decreases in interest expense resulting from fluctuations in interest rates. The Company entered into interest rate swap agreements in June 2019, March 2024, and October 2024, to manage interest rate exposure in connection with its variable interest rate borrowings with an

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aggregate notional value of $50.0 million at December 31, 2025. As of December 31, 2025, approximately $139.1 million of the Company's debt carries a variable rate of interest, as compared to $110.2 million at December 31, 2024. The remainder of the debt at December 31, 2025 (approximately $50.0 million) carries a fixed rate of interest through the use of interest rate swaps. A hypothetical and instantaneous 100 basis point increase in the Company's variable interest rates would increase interest expense by approximately $1.7 million over a twelve month period. The sensitivity analysis above assumes interest rate changes are instantaneous and parallel shifts in the yield curve occur.

Interest rate swaps expose the Company to counterparty credit risk for nonperformance. The Company manages its exposure to counterparty credit risk by dealing with counterparties who are international financial institutions with investment grade credit ratings. Although the Company's credit risk is the replacement cost at the estimated fair value of these instruments, the Company believes that the risk of incurring credit risk losses as a result of counterparty nonperformance is remote.

The Company does not enter into derivative financial instruments for trading purposes.

**Item 8. Financial Statements and Supplementary Data**

The Company's consolidated financial statements and accompanying notes listed in Part IV, Item 15 commencing on page F-1 are incorporated herein by reference.

**Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure**

None.

**Item 9A. Controls and Procedures**

**Evaluation of Disclosure Controls and Procedures**

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

**Changes in Internal Controls**

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

**Management's Report on Internal Control over Financial Reporting**

Management of the Company is responsible for establishing and maintaining effective internal control over financial reporting and for performing an assessment of the effectiveness of internal control over financial reporting as of December 31, 2025. Internal control over financial reporting is defined in Rule 13a-15(f) or 15d-15(f) promulgated under the Exchange Act as a process designed by, or under the supervision of, the Company's principal executive and principal financial officers and effected by the Company's Board of Directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles.

Internal control over financial reporting includes those policies and procedures that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and acquisitions and dispositions of the assets of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Provide reasonable assurance that transactions are recorded as necessary to permit the preparation of financial statements in accordance with U.S. generally accepted accounting principles and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company's assets that could have a material effect on the financial statements.

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All internal control systems, no matter how well designed, have inherent limitations. Because of the inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or the degree of compliance with the policies or procedures may deteriorate. Accordingly, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

Management performed an assessment of the effectiveness of the Company's internal control over financial reporting as of December 31, 2025 using the criteria set forth in the Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework). Based on this assessment, management has determined that the Company's internal control over financial reporting as of December 31, 2025 was effective.

The effectiveness of the Company's internal control over financial reporting as of December 31, 2025 has been audited by Ernst & Young LLP, an independent registered public accounting firm, as stated in their report.

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**Report of Independent Registered Public Accounting Firm**

To the Stockholders and the Board of Directors of Lifetime Brands, Inc.

**Opinion on Internal Control Over Financial Reporting**

We have audited Lifetime Brands, Inc.'s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Lifetime Brands, Inc. (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the 2025 consolidated financial statements of the Company and our report dated March 12, 2026 expressed an unqualified opinion thereon.

**Basis for Opinion**

The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management's Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

**Definition and Limitations of Internal Control Over Financial Reporting**

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young LLP

Jericho, New York

March 12, 2026

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**Item 9B. Other Information**

*Rule 10b5-1 Trading Plans*

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

**Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections**

Not applicable.

**PART III**

**Items 10, 11, 12, 13 and 14**

The information required under these items is contained in the Company's 2026 Proxy Statement, which will be filed with the SEC within 120 days after the close of the Company's fiscal year covered by this Annual Report on Form 10-K and is incorporated herein by reference.

The Company has adopted insider trading policies and procedures regarding securities transactions (the "Insider Trading Policy") that apply to all officers, directors, employees, consultants and contractors of the Company and its subsidiaries, as well as the Company itself. The Company believes that the Insider Trading Policy is reasonably designed to promote compliance with insider trading laws, rules and regulations with respect to the purchase, sale and/or other dispositions of the Company's securities, as well as the applicable rules and regulations of Nasdaq. A copy of the Insider Trading Policy is filed as Exhibit 19 to this Annual Report on Form 10-K.

**PART IV**

**Item 15. Exhibits and Financial Statement Schedules**

(a)See Financial Statements and Financial Statement Schedule on page F-1.

(b)Exhibits:

**Exhibit Index**

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| | |
|:---|:---|
| **<u>No.</u>** | **<u>Description</u>** |
| 2.1 | <u>[Agreement and Plan of Merger, dated as of December 22, 2017, by and among the Company, TPP Acquisition I Corp., TPP Acquisition II LLC, Taylor Parent, LLC, Taylor Holdco, LLC, and CP Taylor GP, LLC. (incorporated by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K filed on December 29, 2017) Holdco, LLC, and CP Taylor GP, LLC. (incorporated by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K filed on December 29, 2017)](https://www.sec.gov/Archives/edgar/data/874396/000119312517383700/d467423dex21.htm)</u> |
| 3.1 | <u>[Second Restated Certificate of Incorporation of the Company (incorporated by reference to Exhibit 3.2 to the Company's Annual Report on Form 10-K for the year ended December 31, 2005)](https://www.sec.gov/Archives/edgar/data/874396/000091068006000214/ex3_2-f10k123105.txt)</u> |
| 3.2 | <u>[Certificate of Amendment of Second Restated Certificate of Incorporation of the Company (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed June 10, 2016)](https://www.sec.gov/Archives/edgar/data/874396/000119312516618978/d191127dex31.htm)</u> |
| 3.3 | <u>[Amended and Restated By-Laws of the Company (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on December 8, 2016)](https://www.sec.gov/Archives/edgar/data/874396/000119312516788456/d255324dex31.htm)</u> |
| 4.1 | <u>[Description of the Company's securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (incorporated by reference to Exhibit 4.1 to the Company's Annual Report on Form 10-K for the year ended December 31, 2019)](https://www.sec.gov/Archives/edgar/data/874396/000162828020003560/lcutex4110k12312019.htm)</u> |
| 10.1 | License Agreement dated December 14, 1989 between the Company and Farberware, Inc. (incorporated by reference to the Company's registration statement No. 33-40154 on Form S-1)(P) |
| 10.2 | <u>[Transition Agreement, dated as of November 1, 2022, by and among the Company and Jeffrey Siegel (incorporated by reference to Exhibit 10.3 to the Company's quarter report on Form 10-Q for the quarter ended September 30, 2022).](https://www.sec.gov/Archives/edgar/data/874396/000162828022028208/ex103transitionagreementda.htm)</u> |

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|:---|:---|
| 10.3 | <u>[Letter Agreement Amending and Supplementing Employment Agreement between Lifetime Brands, Inc. and Daniel Siegel, effective April 13, 2020 (incorporated by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2020)](https://www.sec.gov/Archives/edgar/data/874396/000162828020008225/exhibit102.htm)</u> |
| 10.4 | <u>[Lease Agreement, dated as of May 10, 2006, between AG Metropolitan Endo, L.L.C and the Company for the property located at 1000 Stewart Avenue in Garden City, New York (incorporated by reference to Exhibit 99.1 to the Company's Current Report on Form 8-K filed May 15, 2006)](https://www.sec.gov/Archives/edgar/data/874396/000091068006000404/ex99_1-f8k051006.txt)</u> |
| 10.5 | <u>[First Amendment to the Lease Agreement, dated as of September 26, 2006, between AG Metropolitan Endo, L.L.C and the Company for the property located at 1000 Stewart Avenue in Garden City, New York (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2006)](https://www.sec.gov/Archives/edgar/data/874396/000091068006001070/ex10-1_f10q093006.htm)</u> |
| 10.6 | <u>[Amended and Restated 2000 Long-Term Incentive Plan, dated June 28, 2018 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed June 29, 2018)](https://www.sec.gov/Archives/edgar/data/874396/000119312518209648/d841646dex101.htm)</u> |
| 10.7 | <u>[Form of Restricted Stock Award Agreement under the Amended and Restated 2000 Long-term Incentive Plan (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q filed August 10, 2015)](https://www.sec.gov/Archives/edgar/data/874396/000119312515283316/d82287dex101.htm)</u> |
| 10.8 | <u>[Form of Deferred Stock (Performance-Vesting) Award Agreement under the Amended and Restated 2000 Long-term Incentive Plan (incorporated by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q filed August 10, 2015)\*](https://www.sec.gov/Archives/edgar/data/874396/000119312515283316/d82287dex102.htm)</u> |
| 10.9 | <u>[Amended and Restated 2000 Incentive Bonus Compensation Plan, effective as of June 22, 2017 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed June 23, 2017)](https://www.sec.gov/Archives/edgar/data/874396/000119312517211662/d403365dex101.htm)</u> |
| 10.10 | <u>[Amended and Restated 2000 Long-Term Incentive Plan, effective as of June 25, 2020 (filed as Appendix B to the Registrant's Definitive Proxy Statement on Schedule 14A, filed on April 29, 2020 and incorporated by reference herein)](https://www.sec.gov/Archives/edgar/data/874396/000119312520126185/d836663ddef14a.htm)</u> |
| 10.11 | <u>[Amended and Restated 2000 Long-Term Incentive Plan, effective as of June 23, 2022 (filed as Appendix B to the Registrant's Definitive Proxy Statement on Schedule 14A, filed on April 28, 2022 and incorporated by reference herein)](https://www.sec.gov/Archives/edgar/data/874396/000119312522127863/d350827ddef14a.htm)</u> |
| 10.12 | <u>[Amended and Restated 2000 Long-Term Incentive Plan, effective as of June 20, 2024 (filed as Appendix B to the Registrant's Definitive Proxy Statement on Schedule 14A, filed on April 25, 2024 and incorporated by reference herein)](https://www.sec.gov/Archives/edgar/data/874396/000119312524113918/d766132ddef14a.htm#toc766132_15)</u> |
| 10.13 | <u>[Amended and Restated Employment Agreement, dated September 10, 2015, between the Company and Laurence Winoker (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed September 16, 2015)](https://www.sec.gov/Archives/edgar/data/874396/000119312515321240/d95014dex101.htm)</u> |
| 10.14 | <u>[Amendment to the Amended and Restated Employment Agreement, dated November 8, 2017, between the Company and Laurence Winoker (incorporated by reference to Exhibit 10.3 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2017)](https://www.sec.gov/Archives/edgar/data/874396/000119312517338917/d473962dex103.htm)</u> |
| 10.15 | <u>[Letter Agreement Amending and Supplementing Employment Agreement between Lifetime Brands, Inc. and Laurence Winoker, effective April 13, 2020 (incorporated by reference to Exhibit 10.4 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2020)](https://www.sec.gov/Archives/edgar/data/874396/000162828020008225/exhibit104.htm)</u> |
| 10.16 | <u>[Third Amendment to the Amended and Restated Employment Agreement, dated as of August 1, 2022, between the Company and Laurence Winoker (incorporated by reference to Exhibit 10.1 to the Company's quarterly report on Form 10-Q for the quarter ended June 30, 2022)](https://www.sec.gov/Archives/edgar/data/874396/000162828022021087/ex101thirdamendmenttoamend.htm)</u> |
| 10.17 | <u>[Fourth Amendment to the Amended and Restated Employment Agreement, dated as of March 8, 2023, by and between the Company and Laurence Winoker (incorporated by reference to Exhibit 10.18 to the Company's Annual Report on Form 10-K for the year ended December 31, 2022)](https://www.sec.gov/Archives/edgar/data/874396/000162828023007371/lcutex101812312022.htm)</u>  |
| 10.18 | <u>[Fifth Amendment to the Amended and Restated Employment Agreement, dated as of November 8, 2023, by and between the Company and Laurence Winoker (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2023)](https://www.sec.gov/Archives/edgar/data/874396/000162828023038268/ex-101fifthamendmenttothea.htm)</u> |
| 10.19 | <u>[Shares Subscription Agreement by and among the Company, Ekco, S.A.B. and Mr. José Ramón Elizondo Anaya and Mr. Miguel Ángel Huerta Pando, dated as of June 8, 2007 (incorporated by reference to Exhibit 99.1 to the Company's Current Report on Form 8-K filed June 11, 2007)](https://www.sec.gov/Archives/edgar/data/874396/000091068007000540/ex99-1_f8k061107.htm)</u> |
| 10.20 | <u>[Amendment No. 1 dated September 5, 2007 to the Shares Subscription Agreement by and among the Company, Ekco, S.A.B. and Mr. José Ramón Elizondo Anaya and Mr. Miguel Ángel Huerta Pando (incorporated by reference to Exhibit 10.17 to the Company's Annual Report on Form 10-K for the year ended December 31, 2008)](https://www.sec.gov/Archives/edgar/data/874396/000091068009000143/ex10_17-f10k12312008.htm)</u> |

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|:---|:---|
| 10.21 | <u>[Amendment No. 2 dated September 25, 2008 to the Shares Subscription Agreement by and among the Company, Ekco, S.A.B. and Mr. José Ramón Elizondo Anaya and Mr. Miguel Ángel Huerta Pando (incorporated by reference to Exhibit 10.21 to the Company's Annual Report on Form 10-K for the year ended December 31, 2008)](https://www.sec.gov/Archives/edgar/data/874396/000091068009000143/ex10_20-f10k12312008.htm)</u> |
| 10.22 | <u>[Employment Agreement, dated as of November 8, 2017, between the Company and Daniel Siegel (incorporated by reference to Exhibit 10.4 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2017)](https://www.sec.gov/Archives/edgar/data/874396/000119312517338917/d473962dex104.htm)</u> |
| 10.23 | <u>[Amendment to the Employment Agreement, dated as of October 11, 2019, between the Company and Daniel Siegel (incorporated by reference to Exhibit 10.5 to the Company's Current Report on Form 8-K filed October 15, 2019)](https://www.sec.gov/Archives/edgar/data/874396/000119312519267308/d789732dex105.htm)</u> |
| 10.24 | <u>[Letter Agreement Amending and Supplementing Employment Agreement between Lifetime Brands, Inc. and Daniel Siegel, effective April 13, 2020 (incorporated by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2020)](https://www.sec.gov/Archives/edgar/data/874396/000162828020008225/exhibit102.htm)</u> |
| 10.25 | <u>[Second Amendment, dated February 1, 2021, to the Employment Agreement, dated as of November 8, 2017, by and between Lifetime Brands, Inc. and Daniel Siegel (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed February 1, 2021)](https://www.sec.gov/Archives/edgar/data/874396/000162828021001505/ex102.htm)</u> |
| 10.26 | <u>[Third Amendment, dated March 8, 2023, to the Employment Agreement, dated as of November 8, 2017, by and between Lifetime Brands, Inc. and Daniel Siegel (incorporated by reference to Exhibit 10.26 to the Company's Annual Report on Form 10-K for the year ended December 31, 2022)](https://www.sec.gov/Archives/edgar/data/874396/000162828023007371/lcutex102612312022.htm)</u> |
| 10.27 | <u>[Fourth Amendment to the Employment Agreement, dated as of November 8, 2023, by and between the Company and Daniel Siegel (incorporated by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2023)](https://www.sec.gov/Archives/edgar/data/874396/000162828023038268/ex-102fourthamendmenttoemp.htm)</u>  |
| 10.28 | <u>[Form of Amended and Restated Director's and Officer's Indemnification Agreement (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed January 28, 2016)](https://www.sec.gov/Archives/edgar/data/874396/000119312516440068/d21586dex101.htm)</u> |
| 10.29 | <u>[Receivables Purchase Agreement, dated as of September 30, 2016 by and among the Company, as a Seller and as a Seller Agent and initial Servicer, for itself and each of its subsidiaries thereto as a Seller, and HSBC Bank USA, National Association, as Purchaser (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed October 4, 2016)](https://www.sec.gov/Archives/edgar/data/874396/000119312516730047/d228608dex101.htm)</u> |
| 10.30 | <u>[Lease Agreement (Single Tenant Facility), dated as of February 14, 2017 between Baseline Opportunity LLC and Lifetime Brands Inc. for property located at 1221 North Alder Avenue, Rialto, California (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2017)](https://www.sec.gov/Archives/edgar/data/874396/000119312517164340/d381143dex101.htm)</u> |
| 10.31 | <u>[Voting Agreement, dated as of December 22, 2017, by and among Taylor Parent, LLC, and Jeffrey Siegel, Ronald Shiftan, Daniel Siegel and Clifford Siegel (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed December 29, 2017)](https://www.sec.gov/Archives/edgar/data/874396/000119312517383700/d467423dex101.htm)</u> |
| 10.32 | <u>[Employment Agreement, dated as of December 22, 2017, between the Company and Robert B. Kay (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed December 29, 2017)](https://www.sec.gov/Archives/edgar/data/874396/000119312517383700/d467423dex102.htm)</u> |
| 10.33 | <u>[Amendment to the Employment Agreement, dated as of October 11, 2019, between the Company and Robert B. Kay (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed October 15, 2019)](https://www.sec.gov/Archives/edgar/data/874396/000119312519267308/d789732dex102.htm)</u> |
| 10.34 | <u>[Letter Agreement Amending and Supplementing Employment Agreement between Lifetime Brands, Inc. and Robert B. Kay, effective April 13, 2020 (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2020)](https://www.sec.gov/Archives/edgar/data/874396/000162828020008225/exhibit101.htm)</u> |
| 10.35 | <u>[Second Amendment, dated February 1, 2021, to the Employment Agreement, dated as of December 22, 2017, by and between Lifetime Brands, Inc. and Robert Kay (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed February 1, 2021)](https://www.sec.gov/Archives/edgar/data/874396/000162828021001505/ex101.htm)</u> |
| 10.36 | <u>[Third Amendment, dated March 8, 2023, to the Employment Agreement, dated as of December 22, 2017, by and between Lifetime Brands, Inc. and Robert Kay (incorporated by reference to Exhibit 10.35 to the Company's Annual Report on Form 10-K for the year ended December 31, 2022)](https://www.sec.gov/Archives/edgar/data/874396/000162828023007371/lcutex103512312022.htm)</u> |
| 10.37 | <u>[Stockholders Agreement, dated as of March 2, 2018, between the Company and Taylor Parent, LLC (incorporated by reference to Exhibit 10.01 to the Company's Current Report on Form 8-K filed March 6, 2018)](https://www.sec.gov/Archives/edgar/data/874396/000119312518072132/d543564dex1001.htm)</u> |
| 10.38 | <u>[Amendment to Stockholders Agreement, dated as of October 11, 2019, between the Company and Taylor Parent, LLC (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed October 15, 2019)](https://www.sec.gov/Archives/edgar/data/874396/000119312519267308/d789732dex101.htm)</u> |
| 10.39 | <u>[Second Amendment, dated October 19, 2023, to that certain Stockholders Agreement, dated as of March 2, 2018, by and between Lifetime Brands, Inc. and Taylor Parent, LLC (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on October 20, 2023)](https://www.sec.gov/Archives/edgar/data/874396/000162828023034820/ex-1001.htm)</u> |

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|:---|:---|
| 10.40 | <u>[Letter Agreement and Joinder, dated as of November 9, 2018, by and among the Company, Taylor Parent, LLC and Centre Capital Investors V, LP. (incorporated by reference to Exhibit 10.01 to the Company's Current Report on Form 8-K filed November 15, 2018)](https://www.sec.gov/Archives/edgar/data/874396/000119312518327948/d619485dex1001.htm)</u> |
| 10.41 | <u>[Credit Agreement, dated as of March 2, 2018, by and among the Company, the other Borrowers from time to time party thereto, 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 (incorporated by reference to Exhibit 10.02 to the Company's Current Report on Form 8-K filed March 6, 2018)](https://www.sec.gov/Archives/edgar/data/874396/000119312518072132/d543564dex1002.htm)</u> |
| 10.42 | <u>[Amendment No. 1, dated as of December 28, 2021, by and among the Company, the other Loan Parties party thereto (as defined therein), and JPMorgan Chase Bank, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.01 to the Company's Current Report on Form 8-K filed December 29, 2021)](https://www.sec.gov/Archives/edgar/data/874396/000162828021025662/ex-1001.htm)</u> |
| 10.43 | <u>[Amendment No. 2, dated as of August 26, 2022, by and among the Company, the other Loan Parties party thereto (as defined therein), and JPMorgan Chase Bank, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.01 to the Company's Current Report on Form 8-K filed August 29, 2022)](https://www.sec.gov/Archives/edgar/data/874396/000162828022023821/ex-1001.htm)</u> |
| 10.44 | <u>[Loan Agreement, dated as of March 2, 2018, by and among the Company, the other Loan Parties from time to time party thereto, the Lenders from time to time party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent and Golub Capital LLC, as Syndication Agent. (incorporated by reference to Exhibit 10.03 to the Company's Current Report on Form 8-K filed March 6, 2018)](https://www.sec.gov/Archives/edgar/data/874396/000119312518072132/d543564dex1003.htm)</u> |
| 10.45 | <u>[Amendment No. 1, dated as of December 29, 2022, by and among the Company, the other Loan Parties from time to time party thereto, the Lenders from time to time party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent and Golub Capital LLC, as Syndication Agent. (incorporated by reference to Exhibit 10.01 to the Company's Current Report on Form 8-K filed January 3, 2023)](https://www.sec.gov/Archives/edgar/data/874396/000162828023000094/ex-1001amendmentno1toterml.htm)</u> |
| 10.46 | <u>[Amendment No. 2, dated as of November 14, 2023, by and among the Company, the other Loan Parties party thereto (as defined therein), and JPMorgan Chase Bank, N.A., as Administrative Agent (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed November 15, 2023)](https://www.sec.gov/Archives/edgar/data/874396/000162828023039077/exhibit101.htm)</u> |
| 10.47 | <u>[Amendment No.1 to the Receivables Purchase Agreement, dated as of October 9, 2020 by and among the Company, as a Seller and as a Seller Agent and initial Servicer, for itself and each of its subsidiaries thereto as a Seller, and HSBC Bank USA, National Association, as Purchaser (incorporated by reference to Exhibit 10.43 to the Company's Annual Report on Form 10-K for the year ended December 31, 2020)](https://www.sec.gov/Archives/edgar/data/874396/000162828021004467/lcutex104310k12312020.htm)</u> |
| 10.48 | <u>[Amendment No.2 to the Receivables Purchase Agreement, dated as of January 6, 2023 by and among the Company, as a Seller and as a Seller Agent and initial Servicer, for itself and each of its subsidiaries thereto as a Seller, and HSBC Bank USA, National Association, as Purchaser (incorporated by reference to Exhibit 10.45 to the Company's Annual Report on Form 10-K for the year ended December 31, 2022)](https://www.sec.gov/Archives/edgar/data/874396/000162828023007371/lcutex104512312022.htm)</u> |
| 10.49 | <u>[Amendment No.3 to the Receivables Purchase Agreement, dated as of December 21, 2023 by and among the Company, as a Seller and as a Seller Agent and initial Servicer, for itself and each of its subsidiaries thereto as a Seller, and HSBC Bank USA, National Association, as Purchaser (incorporated by reference to Exhibit 10.50 to the Company's Annual Report on Form 10-K for the year ended December 31, 2023)](https://www.sec.gov/Archives/edgar/data/874396/000162828024010568/lcutex105012312023.htm)</u> |
| 10.50 | <u>[Amendment No.4 to the Receivables Purchase Agreement, dated as of February 23, 2024 by and among the Company, as a Seller and as a Seller Agent and initial Servicer, for itself and each of its subsidiaries thereto as a Seller, and HSBC Bank USA, National Association, as Purchaser (incorporated by reference to Exhibit 10.51 to the Company's Annual Report on Form 10-K for the year ended December 31, 2023)](https://www.sec.gov/Archives/edgar/data/874396/000162828024010568/lcutex105112312023.htm)</u> |
| 10.51+ | <u>[Lease Agreement, dated January 23, 2025, by and between the Company and CRP/TCC Rhoton Owner LLC (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed January 29, 2025)](https://www.sec.gov/Archives/edgar/data/874396/000162828025002928/leaseagreementdatedjanuary.htm)</u> |
| 10.52 | <u>[Amendment Agreement No.6, dated as of March 13, 2025 to the Shares Subscription Agreement by and among the Company, Grupo Vasconia, S.A.B. and Mr. José Ramón Elizondo Anaya and Mr. Miguel Ángel Huerta Pando (incorporated by reference to Exhibit 10.55 to the Company's Annual Report on Form 10-K for the year ended December 31, 2024)](https://www.sec.gov/Archives/edgar/data/874396/000162828025012650/lcutex105512312025.htm)</u> |
| 19.1 | <u>[Insider Trading Policy (incorporated by reference to Exhibit 19.1 to the Company's Annual Report on Form 10-K for the year ended December 31, 2024)](https://www.sec.gov/Archives/edgar/data/874396/000162828025012650/lcutex19112312024.htm)</u> |
| 21.1\* | <u>[Subsidiaries of the Company](lcutex21112312025.htm)</u> |
| 23.1\* | <u>[Consent of Ernst & Young LLP](lcutex23112312025.htm)</u> |
| 23.2\* | <u>[Consent of Castillo Miranda Y Compania, S.C.](lcutex23212312025.htm)</u> |
| 31.1\* | <u>[Certification by Robert B. Kay, Chief Executive Officer and Director, pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities and Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](lcutex31112312025.htm)</u> |

---

------

<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_7)</u>

---

| | |
|:---|:---|
| 31.2\* | <u>[Certification by Laurence Winoker, Executive Vice President – Finance, Treasurer and Chief Financial Officer, pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities and Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](lcutex31212312025.htm)</u> |
| 32.1\*\* | <u>[Certification by Robert B. Kay, Chief Executive Officer and Director, and Laurence Winoker, Executive Vice President – Finance, Treasurer and Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (\*\*)](lcutex32112312025.htm)</u> |
| 97.1 | <u>[Compensation Recoupment Policy of Lifetime Brands, Inc. (incorporated by reference to Exhibit 97.1 to the Company's Annual Report on Form 10-K for the year ended December 31, 2023)](https://www.sec.gov/Archives/edgar/data/874396/000162828024010568/lcutex97112312023.htm)</u> |
| 99.1\* | <u>[Report of Independent Registered Accounting Firm on the consolidated financial statements of Grupo Vasconia, S.A.B. (formerly Ekco, S.A.B.)](lcutex99112312025.htm)</u> |
| 101.INS\* | Inline XBRL Instance Document (the instance document does not appear in the interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
| 101.SCH\* | Inline XBRL Taxonomy Extension Schema Document |
| 101.DEF\* | Inline XBRL Taxonomy Extension Definition Linkbase Document&nbsp;&nbsp;&nbsp;&nbsp; |
| 101.CAL\* | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.LAB\* | Inline XBRL Taxonomy Extension Labels Linkbase Document |
| 101.PRE\* | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104 | The cover page from this Annual Report on Form 10-K, formatted in Inline XBRL |

---

Notes to exhibits:

(\*) Filed herewith.

(\*\*) Furnished herewith.

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

------

<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_7)</u>

**SIGNATURES**

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| |
|:---|
| Lifetime Brands, Inc. |
| /s/ Robert B. Kay |
| Robert B. Kay |
| Chief Executive Officer and Director |
| Date: March 12, 2026 |

---

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| Signature | Title | Date |
| /s/ Robert B. Kay | Chief Executive Officer and Director | March 12, 2026 |
| Robert B. Kay | (Principal Executive Officer) |  |
| /s/ Laurence Winoker | Executive Vice President | March 12, 2026 |
| Laurence Winoker | Treasurer and Chief Financial Officer<br>(Principal Financial and Accounting Officer) |  |
| /s/ Jeffrey Siegel | Chairman of the Board of Directors | March 12, 2026 |
| Jeffrey Siegel |  |  |
| /s/ Jeffrey Herbert Evans | Director | March 12, 2026 |
| Jeffrey Herbert Evans |  |  |
| /s/ Rachael Jarosh | Director | March 12, 2026 |
| Rachael Jarosh |  |  |
| /s/ Cherrie Nanninga | Director | March 12, 2026 |
| Cherrie Nanninga |  |  |
| /s/ Craig Phillips | Director | March 12, 2026 |
| Craig Phillips |  |  |
| /s/ Veronique Gabai-Pinsky | Director | March 12, 2026 |
| Veronique Gabai-Pinsky |  |  |
| /s/ Bruce Pollack | Director | March 12, 2026 |
| Bruce Pollack |  |  |
| /s/ Michael J. Regan | Director | March 12, 2026 |
| Michael J. Regan |  |  |
| /s/ Michael Schnabel | Director | March 12, 2026 |
| Michael Schnabel |  |  |

---

------

<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>

**Item 15**

**LIFETIME BRANDS, INC.**

**LIST OF FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULE**

The following consolidated financial statements of Lifetime Brands, Inc. are filed as part of this Annual Report under Item 8 – *Financial Statements and Supplementary Data.*

---

| | |
|:---|:---|
| <u>[Report of Independent Registered Public Accounting Firm](#i54ce78ac179642c5b4be2feadb06906c_163)</u> (PCAOB ID: 42) | [F-](#i54ce78ac179642c5b4be2feadb06906c_163)[2](#i54ce78ac179642c5b4be2feadb06906c_163) |
| <u>[Consolidated Balance Sheets as of December 31, 2025 and 2024](#i54ce78ac179642c5b4be2feadb06906c_166)</u> | [F-](#i54ce78ac179642c5b4be2feadb06906c_166)[4](#i54ce78ac179642c5b4be2feadb06906c_166) |
| <u>[Consolidated Statements of Operations for the Years ended December 31, 2025, 2024, and 2023](#i54ce78ac179642c5b4be2feadb06906c_169)</u> | [F-](#i54ce78ac179642c5b4be2feadb06906c_169)[5](#i54ce78ac179642c5b4be2feadb06906c_169) |
| <u>[Consolidated Statements of Comprehensive (Loss) Income for the Years ended December 31, 2025, 2024, and 2023](#i54ce78ac179642c5b4be2feadb06906c_172)</u> | [F-](#i54ce78ac179642c5b4be2feadb06906c_172)[6](#i54ce78ac179642c5b4be2feadb06906c_172) |
| <u>[Consolidated Statements of Stockholders' Equity for the Years ended December 31, 2025, 2024, and 2023](#i54ce78ac179642c5b4be2feadb06906c_175)</u> | [F-](#i54ce78ac179642c5b4be2feadb06906c_175)[7](#i54ce78ac179642c5b4be2feadb06906c_175) |
| <u>[Consolidated Statements of Cash Flows for the Years ended December 31, 2025, 2024, and 2023](#i54ce78ac179642c5b4be2feadb06906c_178)</u> | [F-](#i54ce78ac179642c5b4be2feadb06906c_178)[8](#i54ce78ac179642c5b4be2feadb06906c_178) |
| <u>[Notes to Consolidated Financial Statements](#i54ce78ac179642c5b4be2feadb06906c_181)</u> | [F-](#i54ce78ac179642c5b4be2feadb06906c_181)[9](#i54ce78ac179642c5b4be2feadb06906c_181) |

---

The following consolidated financial statement schedule of Lifetime Brands, Inc. required pursuant to Item 15(a) is submitted herewith:

---

| | |
|:---|:---|
| <u>[Schedule II – Valuation and Qualifying Accounts](#i54ce78ac179642c5b4be2feadb06906c_229)</u> | [S-](#i54ce78ac179642c5b4be2feadb06906c_229)[1](#i54ce78ac179642c5b4be2feadb06906c_229) |

---

All other financial schedules are not required under the related instructions or are inapplicable, and therefore have been omitted.

------

<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>

**Report of Independent Registered Public Accounting Firm**

To the Stockholders and the Board of Directors of Lifetime Brands, Inc.

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheets of Lifetime Brands, Inc. (the Company) as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive (loss) income**,** stockholders' equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the "consolidated financial statements"). In our opinion, based on our audits and for 2023 the report of other auditors, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles.

We did not audit the 2023 financial statements of Grupo Vasconia, S.A.B. and Subsidiaries, a corporation in which the Company had a 24.7% interest. In the consolidated financial statements, the Company's equity in losses of Grupo Vasconia, S.A.B. and Subsidiaries is stated at $5.8 million in 2023. The financial statements of Grupo Vasconia, S.A.B. and Subsidiaries were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for Grupo Vasconia, S.A.B. and Subsidiaries, is based solely on the report of the other auditors.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated March 12, 2026 expressed an unqualified opinion thereon.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits and the report of other auditors provide a reasonable basis for our opinion.

**Critical Audit Matter**

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the account or disclosure to which it relates.

---

| | |
|:---|:---|
| | **Estimation of Variable Consideration** |
| *Description of the Matter* | For the year ended December 31, 2025, the Company reported net sales of $647.9 million. As described in Note 2 to the consolidated financial statements, the Company offers various contractual and non-contractual sales incentives and promotional programs to its customers in the normal course of business. These sales incentives and promotions represent variable consideration and are reflected as reductions in net sales in the Company's consolidated statements of operations. Sales incentives and promotions that are non-contractual require the Company to estimate the amount of variable consideration based on historical experience and other known factors. |

---

------

<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>

---

| | |
|:---|:---|
| | Auditing the Company's measurement of the variable consideration associated with the non-contractual sales incentives and promotions is challenging because the method of calculation involves subjective management assumptions about estimates of the expected discounts. For example, in addition to historical experience, the Company considers specific known events and industry trends to estimate the expected discounts. Changes in these assumptions can have a material effect on the amount of net sales recognized. |
| *How We Addressed the Matter in Our Audit* | We obtained an understanding, evaluated the design, and tested the operating effectiveness of the Company's controls over the estimation of variable consideration related to non-contractual sales incentives and promotions. Among others, we tested management's review controls over the determination of significant assumptions used in estimating the variable consideration related to non-contractual sales incentives and promotions. We also tested controls over management's review of the completeness and accuracy of the underlying data used in the analysis. |
| | To test the Company's measurement of variable consideration related to the non-contractual sales incentives and promotions, our audit procedures included, among others, evaluating the Company's methodologies, testing the completeness and accuracy of the underlying data used in management's analyses, and assessing the reasonableness of significant assumptions. Specifically, we compared historical estimates to actual results to evaluate management's ability to accurately estimate variable consideration discounts. We inspected a selection of communications between the sales and finance departments used to support the estimation of non-contractual sales incentives and promotions, and for a sample of transactions, we performed detailed testing of non-contractual sales incentives and promotions to validate the timing and amount recorded We performed inquiries of sales and divisional executives to support our evaluation of the recorded non-contractual sales incentives and promotions. |

---

/s/ Ernst & Young LLP

We have served as the Company's auditor since 1984.

Jericho, New York

March 12, 2026

------

<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>

**LIFETIME BRANDS, INC.**

**CONSOLIDATED BALANCE SHEETS**

(in thousands - except share data)

---

| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
| | **2025** | **2024** |
| **ASSETS** |  |  |
| CURRENT ASSETS |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $4267 | $2929 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, less allowances of $11,970 at December 31, 2025 and $14,093 at December 31, 2024 | 161861 | 156743 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory | 194046 | 202408 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 12147 | 11488 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes receivable | 1572 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL CURRENT ASSETS | 373893 | 373568 |
| PROPERTY AND EQUIPMENT, net | 15441 | 15049 |
| OPERATING LEASE RIGHT-OF-USE ASSETS | 48506 | 59571 |
| INTANGIBLE ASSETS, net | 132922 | 183527 |
| OTHER ASSETS | 1793 | 2595 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL ASSETS** | $572555 | $634310 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| CURRENT LIABILITIES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current maturity of term loan | $5022 | $4891 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 45844 | 60029 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | 64294 | 70848 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable |  | 830 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current portion of operating lease liabilities | 16143 | 15145 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL CURRENT LIABILITIES | 131303 | 151743 |
| OTHER LONG-TERM LIABILITIES | 14261 | 15955 |
| INCOME TAXES PAYABLE, LONG-TERM | 686 | 706 |
| OPERATING LEASE LIABILITIES | 42442 | 56740 |
| DEFERRED INCOME TAXES | 1554 | 5601 |
| REVOLVING CREDIT FACILITY | 54105 | 42693 |
| TERM LOAN | 125927 | 130949 |
| STOCKHOLDERS' EQUITY |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock, $0.01 par value, shares authorized: 50,000,000 at December 31, 2025 and 2024; shares issued and outstanding: 22,654,207 at December 31, 2025 and 22,155,735 at December 31, 2024 | 227 | 222 |
| &nbsp;&nbsp;Paid-in capital | 283449 | 280566 |
| &nbsp;&nbsp;Accumulated deficit | (63354) | (32550) |
| &nbsp;&nbsp;Accumulated other comprehensive loss | (18045) | (18315) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL STOCKHOLDERS' EQUITY | 202277 | 229923 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY** | $572555 | $634310 |

---

See Notes to consolidated financial statements.

------

<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>

**LIFETIME BRANDS, INC.**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

(in thousands – except per share data)

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2025** | **2024** | **2023** |
| Net sales | $647933 | $682952 | $686683 |
| Cost of sales | 407238 | 422249 | 432044 |
| Gross margin | 240695 | 260703 | 254639 |
| Distribution expenses | 74124 | 73810 | 69194 |
| Selling, general and administrative expenses | 142442 | 159809 | 152648 |
| Goodwill impairment | 33237 |  |  |
| Restructuring expenses | 328 |  | 856 |
| (Loss) income from operations | (9436) | 27084 | 31941 |
| Interest expense | (20030) | (22208) | (21728) |
| Mark to market loss on interest rate derivatives | (754) | (466) | (499) |
| Gain on extinguishments of debt, net |  |  | 761 |
| Loss on equity securities |  | (14152) |  |
| (Loss) income before income taxes and equity in losses | (30220) | (9742) | 10475 |
| Income tax benefit (provision) | 3283 | (3331) | (6222) |
| Equity in losses, net of taxes |  | (2092) | (12665) |
| **NET LOSS** | $(26937) | $(15165) | $(8412) |
| **BASIC LOSS PER COMMON SHARE**  | $(1.24) | $(0.71) | $(0.40) |
| **DILUTED LOSS PER COMMON SHARE**  | $(1.24) | $(0.71) | $(0.40) |

---

See Notes to consolidated financial statements.

------

<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>

**LIFETIME BRANDS, INC.**

**CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME**

(in thousands)

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2025** | **2024** | **2023** |
| Net loss | $(26937) | $(15165) | $(8412) |
| Other comprehensive income, net of tax: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in translation adjustment | 686 | 14230 | 3458 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in cash flow hedges | (291) | 381 | (1057) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect of retirement benefit obligations | (125) | 573 | (46) |
| Other comprehensive income, net of taxes | 270 | 15184 | 2355 |
| Comprehensive (loss) income | $(26667) | $19 | $(6057) |

---

See Notes to consolidated financial statements.

------

<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>

**LIFETIME BRANDS, INC.**

**CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY**

(in thousands)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Common stock** | **Common stock** | **Paid-in<br>capital** | **Retained earnings (accumulated deficit)**  | **Accumulated other comprehensive loss** | |
| | **Shares** | **Amount** | **Paid-in<br>capital** | **Retained earnings (accumulated deficit)**  | **Accumulated other comprehensive loss** |<br>**Total** |
| **BALANCE AT DECEMBER 31, 2022** | 21780 | $218 | $274579 | $1145 | $(35854) | $240088 |
| Net loss |  |  |  | (8412) |  | (8412) |
| Other comprehensive income, net of tax |  |  |  |  | 2355 | 2355 |
| Performance shares issued to employees | 120 | 1 | (1) |  |  |  |
| Net issuance of restricted shares granted to employees and directors | 325 | 3 | (3) |  |  |  |
| Stock compensation expense |  |  | 3690 |  |  | 3690 |
| Shares effectively repurchased for required employee withholding taxes | (92) | (1) | (537) |  |  | (538) |
| Stock repurchase | (320) | (3) |  | (2536) |  | (2539) |
| Dividends <sup>(1)</sup> |  |  |  | (3765) |  | (3765) |
| **BALANCE AT DECEMBER 31, 2023** | 21813 | 218 | 277728 | (13568) | (33499) | 230879 |
| Net loss |  |  |  | (15165) |  | (15165) |
| Other comprehensive income, net of tax |  |  |  |  | 15184 | 15184 |
| Performance shares issued to employees | 152 | 2 | (2) |  |  |  |
| Net issuance of restricted shares granted to employees and directors | 302 | 3 | (3) |  |  |  |
| Stock compensation expense |  |  | 3924 |  |  | 3924 |
| Shares effectively repurchased for required employee withholding taxes | (111) | (1) | (1081) |  |  | (1082) |
| Dividends <sup>(1)</sup> |  |  |  | (3817) |  | (3817) |
| **BALANCE AT DECEMBER 31, 2024** | 22156 | 222 | 280566 | (32550) | (18315) | 229923 |
| Net loss |  |  |  | (26937) |  | (26937) |
| Other comprehensive income, net of tax |  |  |  |  | 270 | 270 |
| Net issuance of restricted shares granted to employees and directors | 579 | 6 | (6) |  |  |  |
| Stock compensation expense |  |  | 3304 |  |  | 3304 |
| Shares effectively repurchased for required employee withholding taxes | (81) | (1) | (415) |  |  | (416) |
| Dividends <sup>(1)</sup> |  |  |  | (3867) |  | (3867) |
| **BALANCE AT DECEMBER 31, 2025** | 22654 | $227 | $283449 | $(63354) | $(18045) | $202277 |

---

<sup>(1)</sup> Cash dividend declared per share of common stock, were $0.17, $0.17 and $0.17 in 2023, 2024 and 2025, respectively.

See Notes to consolidated financial statements.

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<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>

**LIFETIME BRANDS, INC.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

(in thousands)

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2025** | **2024** | **2023** |
| **OPERATING ACTIVITIES** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(26937) | $(15165) | $(8412) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash provided by operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 21848 | 22314 | 19571 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill impairment | 33237 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of financing costs | 2754 | 2859 | 1968 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on disposition of fixed assets | (94) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mark to market loss on interest rate derivatives | 754 | 466 | 499 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating leases, net | (2313) | (2010) | (1889) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for doubtful accounts | 1110 | 950 | 2116 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | (4005) | (2039) | (2130) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock compensation expense | 3301 | 3920 | 3687 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity in losses, net of taxes |  | 2092 | 12665 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contingent consideration fair value adjustment |  |  | (650) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on extinguishments of debt, net |  |  | (761) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on equity securities |  | 14152 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (4934) | (3206) | (14972) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory | 11245 | (14557) | 35428 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses, other current assets and other assets | (779) | 5200 | (1833) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable, accrued expenses and other liabilities | (25128) | 4185 | 10846 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes receivable | (1572) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable | (879) | (592) | 298 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**NET CASH PROVIDED BY OPERATING ACTIVITIES** | 7608 | 18569 | 56431 |
| **INVESTING ACTIVITIES** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and equipment | (4354) | (2227) | (2801) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net proceeds from sale of property | 94 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**NET CASH USED IN INVESTING ACTIVITIES** | (4260) | (2227) | (2801) |
| **FINANCING ACTIVITIES** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from revolving credit facility | 318057 | 268209 | 162391 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayments of revolving credit facility | (308526) | (285264) | (113530) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from Term Loan |  |  | 55991 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayments of Term Loan | (7500) | (7500) | (149540) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment of financing costs |  |  | (9537) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments for finance lease obligations | (45) | (45) | (27) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments of tax withholding for stock based compensation | (416) | (1081) | (537) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments for stock repurchase |  |  | (2539) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash dividends paid | (3783) | (3809) | (3734) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**NET CASH USED IN FINANCING ACTIVITIES** | (2213) | (29490) | (61062) |
| Effect of foreign exchange on cash | 203 | (112) | 23 |
| **INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS** | 1338 | (13260) | (7409) |
| Cash and cash equivalents at beginning of year | 2929 | 16189 | 23598 |
| **CASH AND CASH EQUIVALENTS AT END OF YEAR** | $4267 | $2929 | $16189 |

---

See Notes to consolidated financial statements.

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**<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>**

**LIFETIME BRANDS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**December 31, 2025** 

**NOTE 1 — SIGNIFICANT ACCOUNTING POLICIES**

**Organization and business**

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 towards consumers purchasing moderately priced kitchenware, tableware and housewares, are sold through virtually every major level of trade. The Company generally markets several lines within each of its product categories under more than one brand. The Company sells its products directly to retailers (who may resell the Company's products through their websites) and, to a lesser extent, to distributors. The Company also sells a limited selection of its products directly to consumers through its own websites.

**Basis of presentation**

The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for financial information and with the instructions to Form 10-K.

The accompanying consolidated financial statements include estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with U.S. GAAP. The most significant of these estimates and assumptions relate to revenue recognition (including estimates for variable consideration), allowances for doubtful accounts, reserves for sales returns and allowances and customer chargebacks, inventory mark-down provisions, impairment of goodwill, intangible assets and long-lived assets, stock-based compensation expense, derivative valuations, accruals related to the Company's tax positions and tax valuation allowances. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates.

**Principles of consolidation** 

The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

**Risk and uncertainties**

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

**Foreign currency**

The Company has certain foreign subsidiaries in which the functional currency is the local currency. Foreign currency denominated assets and liabilities at these subsidiaries are translated into U.S. dollars at exchange rates prevailing at the balance sheet dates. Revenues, costs and expenses are translated into U.S. dollars at average exchange rates for the relevant period. Income and losses resulting from translation are recorded as a cumulative translation adjustment in accumulated other comprehensive income (loss).

The Company and its foreign subsidiaries conduct business in currencies other than their respective functional currencies. Transactions are remeasured to the subsidiaries' functional currency at the exchange rate in effect on the dates of such transactions. Foreign currency gains and losses relating to the differences between these recorded amounts and the functional currency equivalent actually received or paid are included within selling, general and administrative expenses. The foreign currency gain (loss) were $0.7 million, $(0.6) million, and $(0.1) million for the years ended 2025, 2024, and 2023, respectively.

**Revenue recognition**

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

The Company offers various sales incentives and promotional programs to its customers in the normal course of business. These incentives and promotions typically include arrangements such as cooperative advertising, buydowns, volume rebates and discounts.

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**<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>**

**LIFETIME BRANDS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**December 31, 2025** 

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 for additional information.

**Cost of sales**

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

**Distribution expenses**

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

**Advertising expenses**

Advertising expenses are expensed as incurred and are included in selling, general and administrative expenses. Advertising expenses were $7.4 million, $7.8 million and $7.5 million for the years ended December 31, 2025, 2024 and 2023, respectively.

**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 the 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.

The sales of accounts receivable, under the Company's Receivables Purchase Agreement with HSBC, are reflected as a reduction of accounts receivable in the Company's consolidated balance sheet at the time of sale and any related expense is included in selling, general and administrative expenses in the Company's consolidated statements of operations.

**Inventory**

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

**Property and equipment**

Property and equipment is stated at cost. Equipment under finance leases is recorded at the present value of the total minimum lease payments. Property and equipment, other than leasehold improvements and equipment under finance leases, are depreciated using the straight-line method over the estimated useful lives of the assets. Buildings are depreciated over 30 years, machinery, furniture and equipment and computer hardware and software are depreciated over periods ranging from 3 years to 10 years. Leasehold improvements are amortized over the term of the lease or the estimated useful lives of the improvements, whichever is shorter. Equipment under finance leases are amortized over the shorter of the lease term or the assets' useful lives. Advances paid towards the acquisition of property and equipment and the cost of property and equipment not ready for use before the end of the period are classified as construction in progress.

**Cash equivalents**

The Company considers all highly liquid instruments with a maturity of three months or less when purchased to be cash equivalents.

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**<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>**

**LIFETIME BRANDS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**December 31, 2025** 

**Concentration of credit risk**

The Company's cash and cash equivalents are potentially subject to concentration of credit risk. The Company maintains cash with several financial institutions that, in some cases, is in excess of Federal Deposit Insurance Corporation insurance limits.

Concentrations of credit risk with respect to trade accounts receivables is limited due to the large number of entities comprising the

Company's customer base, however the Company's largest customers may account for a higher percentage of the outstanding balance.

During the years ended December 31, 2025, 2024 and 2023, Walmart accounted for 17%, 19% and 21% of consolidated net sales, respectively. During the years ended December 31, 2025, 2024 and 2023, sales to Amazon accounted for 12%, 13% and 11% of consolidated net sales, respectively. During the years ended December 31, 2025, 2024 and 2023, sales to Costco accounted for 11% of consolidated net sales, respectively. During the year ended December 31, 2025, sales to TJX accounted for 11% of consolidated net sales. Sales to Amazon and TJX are included in the Company's U.S. and International segments. Sales to Walmart and Costco are included in the Company's U.S. segment. No other customers accounted for 10% or more of the Company's sales during these periods.

**Fair value measurements**

Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurements and Disclosures, provides enhanced guidance for using fair value to measure assets and liabilities and establishes a common definition of fair value, provides a framework for measuring fair value under U.S. GAAP and expands disclosure requirements about fair value measurements. Fair value measurements included in the Company's consolidated financial statements relate to the fair value of the Vasconia investment that use Level 3 unobservable inputs as described in NOTE 5 — EQUITY INVESTMENTS, the Company's goodwill impairment tests that use Level 3 unobservable inputs as described in NOTE 6 — GOODWILL AND INTANGIBLE ASSETS and derivatives that use Level 2 observable inputs as described in NOTE 8 — DERIVATIVES.

**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 approximate fair value since such borrowings bear interest at variable market rates.

**Derivatives**

The Company accounts for derivative instruments in accordance with ASC Topic 815, Derivatives and Hedging. 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 cash flow 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 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 consolidated statements of operations.

**Goodwill, intangible assets and long-lived assets** 

Goodwill is not amortized but, instead, is subject to an annual impairment assessment on October 1. Additionally, if events or conditions were to indicate the carrying value of a reporting unit may not be recoverable, the Company would evaluate goodwill and other intangible assets for impairment at that time.

As it relates to the goodwill assessment, the Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the quantitative goodwill impairment testing described in the FASB's ASC Topic 350, Intangibles – Goodwill and Other. If, after assessing qualitative factors, the Company determines that it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, then no further testing is performed for that reporting unit. However, if based on the Company's qualitative assessment it concludes that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, or if the Company elects to bypass the qualitative assessment, the Company will proceed with performing the quantitative impairment test. See NOTE 6 — GOODWILL AND INTANGIBLE ASSETS for further discussion regarding goodwill impairment.

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

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**<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>**

**LIFETIME BRANDS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**December 31, 2025** 

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.

**Income taxes**

The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. The Company accounts for foreign income taxes based upon anticipated reinvestment of profits into respective foreign tax jurisdictions.

The Company applies the authoritative guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in the Company's financial statements*.* In accordance with this guidance, tax positions must meet a more-likely-than-not recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position. A valuation allowance is required to be established or maintained when it is "more likely than not" that all or a portion of deferred tax assets will not be realized.

**Share-based compensation** 

The Company accounts for its share-based compensation arrangements in accordance with ASC Topic 718, Compensation: Stock-based Compensation, which requires the measurement of compensation expense for all share-based compensation granted to employees and non-employee directors at fair value on the date of grant and recognition of compensation expense over the related service period. Forfeitures are accounted for as they occur.

The Company uses the Black-Scholes option valuation model to estimate the fair value of its stock options. The Black-Scholes option valuation model requires the input of subjective assumptions including the expected stock price volatility of the Company's common stock and the expected dividend yield. Changes in these subjective input assumptions can materially affect the fair value estimate of the Company's stock options on the date of the option grant.

Performance share awards are initially valued at the Company's closing stock price on the date of grant. Each performance award represents the right to receive up to 150% of the target number of shares of common stock. The number of shares of common stock earned will be determined based on the attainment of specified performance goals, as determined by the Compensation Committee of the Board of Directors, by the end of the performance period. Compensation expense for performance awards is recognized over the vesting period and will vary based on remeasurement during the performance period. If achievement of the performance metrics is not probable of achievement during the performance period, compensation expense is reversed. The awards are forfeited if the performance metrics are not achieved as of the end of the performance period. The performance share awards vest at the end of a three year period, as determined by the Compensation Committee.

The Company bases the estimated fair value of restricted stock awards on the date of grant. The estimated fair value is determined based on the closing price of the Company's common stock on the date of grant multiplied by the number of shares awarded. Compensation expense is recognized on a straight-line basis over the vesting period.

Cash-settled performance-based awards represent the right to receive up to 150% of the target number of deferred stock units with payment in cash equivalent to the value of one share of the Company's common stock. The number of deferred stock units earned will be determined based on the attainment of specified performance goals at the end of the performance period, as determined by the Compensation Committee of the Board of Directors. The cash-settled performance-based awards are subject to the terms and conditions of the Company's Plan. Compensation expense for cash-settled performance-based awards is recognized over the vesting period and will vary based on remeasurement during the performance period. If achievement of the performance metrics is not probable of achievement during the performance period, compensation expense is reversed. The awards are forfeited if the performance metrics are not achieved as of the end of the performance period. The cash**-**settled performance-based awards are liability-classified awards and are recorded within accrued expenses and other long-term liabilities in the Company's consolidated balance sheet. These awards are remeasured to fair value at the end of each reporting period until settlement. The cash-settled performance-based awards vest at the end of a three year period, as determined by the Compensation Committee.

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**<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>**

**LIFETIME BRANDS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**December 31, 2025** 

**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 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 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 consolidated balance sheets.

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

For certain equipment leases, the Company applies a portfolio approach to effectively account for any ROU assets and lease liabilities. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. Variable lease payment amounts that cannot be determined at the commencement of the lease, such as increases in lease payments that do not depend on changes in index rates or payments based on usage, are not included in the ROU assets or liabilities. These are expensed as incurred and recorded as variable lease expense.

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.

During 2025, the Company's International segment incurred $0.3 million of restructuring expense related to severance associated with the reorganization of the International segment's workforce. The reorganization was undertaken in connection with Project Concord and primarily affected the structure of the International segment's merchandising and sales workforce. The Company expects to record approximately $0.7 million, of restructuring charges in connection with the Project Concord, for severance and related costs in 2026.

In 2023, the Company incurred $0.8 million of unallocated expense related to the termination payment with its former Executive Chairman, Jeffrey Siegel (the "Executive Chairman"). On November 1, 2022, the Company entered into a transition agreement with its Executive chairman which terminated his employment with the Company, effective March 31, 2023. The employment agreement provided for a one-time payment, which was paid on April 7, 2023.

*Hagerstown Facility*

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"). In connection with the relocation, the Company expects to incur exit costs of approximately $7.0 million for employee severance, certain employee relocation costs, and remaining lease costs for the Robbinsville Facility, which costs are expected to be incurred in 2026.

**Commitments and Contingencies**

The Company is subject to various claims and contingencies related to lawsuits, certain taxes and environmental matters, as well as commitments under contractual and other commercial obligations. The Company recognizes liabilities for contingencies and commitments when a loss is probable and estimable.

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**<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>**

**LIFETIME BRANDS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**December 31, 2025** 

**Adopted accounting pronouncements**

In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Updated No. ("ASU") 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in ASU 2023-09 address investor requests for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. The Company adopted this ASU on a retrospective basis effective January 1, 2025. Refer to NOTE 11 — INCOME TAXES for the inclusion of new disclosures required.

**New accounting pronouncements**

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

In 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 $3.6 million, $3.2 million and $2.7 million for the years ended December 31, 2025, 2024 and 2023, respectively. Net sales exclude taxes that are collected from customers and remitted to the taxing authorities.

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

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

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**<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>**

**LIFETIME BRANDS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**December 31, 2025** 

The following tables present the Company's net sales disaggregated by segment, product category and geographic region for the years ended December 31, 2025, 2024 and 2023 (in thousands).

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2025** | **2024** | **2023** |
| | | (in thousands) | |
| **U.S. segment** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kitchenware | $374918 | $384307 | $386681 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tableware | 122185 | 132762 | 138258 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Home Solutions | 94141 | 110133 | 108140 |
| Total U.S. segment | 591244 | 627202 | 633079 |
| **International segment** | 56689 | 55750 | 53604 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net sales | $647933 | $682952 | $686683 |

---

---

| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
| | **2025** | **2024** | **2023** |
| | | (in thousands) | |
| United States | $572183 | $599488 | $599146 |
| United Kingdom | 33229 | 35555 | 34959 |
| Rest of World | 42521 | 47909 | 52578 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net sales | $647933 | $682952 | $686683 |

---

**NOTE 3 — LEASES**

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

ROU assets represent the Company's right to use an underlying asset during the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the commencement date based on the net present value of fixed lease payments over the lease term. The Company's lease term includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. ROU assets also include any advance lease payments. As most of the Company's operating leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

The components of lease costs for the year ended December 31, 2025, 2024 and 2023 were as follows (in thousands):

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2025** | **2024** | **2023** |
| Operating lease costs <sup>(1)</sup>: |  |  |  |
| Fixed lease expense | $17220 | $17063 | $16911 |
| Variable lease expense | 6882 | 6202 | 5432 |
| **Total** | $24102 | $23265 | $22343 |

---

<sup>(1)</sup> Expenses are recorded within distribution expenses and selling, general and administrative expenses.

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**<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>**

**LIFETIME BRANDS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**December 31, 2025** 

Supplemental cash flow information for the year ended December 31, 2025, 2024 and 2023 were as follows (in thousands):

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2025** | **2024** | **2023** |
| Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
| Operating cash flows for operating leases | $19533 | $19073 | $18800 |
| **Total** | $19533 | $19073 | $18800 |

---

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2025** | **2024** | **2023** |
| Right-of-use assets obtained in exchange for lease obligations: |  |  |  |
| Operating leases | $787 | $2177 | $5718 |
| **Total** | $787 | $2177 | $5718 |

---

Included in machinery, furniture and equipment as of December 31, 2025 and 2024 is $0.3 million, related to assets recorded under finance leases. Included in accumulated depreciation and amortization at December 31, 2025 and December 31, 2024 were less than $0.1 million, related to assets recorded under finance leases.

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

---

| | |
|:---|:---|
| | **Operating** |
| 2026 | $19321 |
| 2027 | 15098 |
| 2028 | 13080 |
| 2029 | 6840 |
| 2030 | 5010 |
| Thereafter | 9242 |
| Total lease payments | 68591 |
| Less: Interest | (10006) |
| Present value of lease payments | $58585 |

---

Average lease terms and discount rates were as follows:

---

| | | |
|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2024** |
| Weighted-average remaining lease term (years) |  |  |
| Operating leases | 4.6 | 5.2 |
| Weighted-average discount rate |  |  |
| Operating leases | 6.6% | 6.6% |

---

On January 23, 2025, the Company entered into a lease agreement for a new distribution center in Hagerstown, Maryland ("Hagerstown Facility"). The term of the lease is 180 months following the rent commencement date, which is expected to occur in the second quarter of 2026. Base rent for the first year of the lease is $7.3 million, escalating by 3% annually. A portion of the base rent will be abated for the first 36 months at the annual prevailing rate for a total rent abatement of $7.2 million. The lease agreement also includes a total tenant improvement allowance of $5.1 million.

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**<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>**

**LIFETIME BRANDS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**December 31, 2025** 

**NOTE 4 — SALE OF ACCOUNTS RECEIVABLE** 

To improve its liquidity during seasonally high working capital periods, the Company has an uncommitted Receivables Purchase Agreement with HSBC Bank USA, as Purchaser (the "Receivables Purchase Agreement"). Under the Receivables Purchase Agreement, the Company may offer to sell certain eligible accounts receivables (the "Receivables") to HSBC Bank USA, which may accept such offer, and purchase the offered Receivables. Under the Receivables Purchase Agreement, following each purchase of Receivables, the outstanding aggregate purchased Receivables shall not exceed $30.0 million. HSBC Bank USA will assume the credit risk of the Receivables purchased; and, the Company will continue to be responsible for all non-credit risk matters. The Company will service the Receivables, and as such servicer, collect and otherwise enforce the Receivables on behalf of HSBC Bank USA. The term of the agreement is for 364 days and automatically extends for annual successive terms unless terminated. Either party may terminate the agreement at any time upon 60 days prior written notice to the other party. The Company did not sell receivables to HSBC during the year ended December 31, 2025 and December 31, 2024.

At December 31, 2025, $19.2 million of accounts receivables were available for sale to HSBC, net of applicable charges.

**NOTE 5 — EQUITY INVESTMENTS**

The Company owns 24.7% interest in Grupo Vasconia S.A.B ("Vasconia"), an integrated manufacturer of aluminum products and a housewares company in Mexico. Shares of Vasconia's capital stock are traded on the Bolsa Mexicana de Valores, the Mexican Stock Exchange. The Quotation Key is VASCONI. The Company accounts for its Vasconia investment at fair value in accordance with Accounting Standards Codification ("ASC") Topic 321: Investments — Equity Securities, with any changes in fair value recorded within income (loss) on equity securities on the consolidated statements of operations. The fair value of the Vasconia investment was not material as of December 31, 2025.

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

In the second quarter of 2024, Vasconia's shareholders' approved a resolution to a reorganization process in terms of the Law of Commercial Bankruptcy in Mexico and subsequently a bankruptcy suit was filed against Vasconia by one of its largest suppliers. The Company concluded that the recent events constituted a loss of significant influence and resulted in the discontinuation of the equity method of accounting. As a result of the loss of significant influence, the accumulated other comprehensive losses previously recognized under the equity method of accounting were reclassified to the carrying value of the Vasconia investment and subsequently resulted in a non-cash loss of $14.2 million to reduce the investment to its fair value during the three months ended June 30, 2024.

Prior to accounting for the investment in Vasconia at fair value, equity in losses, net of taxes recognized for the years ended December 31, 2024 and 2023 in the accompanying consolidated statements of operations are as follows:

---

| | | |
|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2024** | **2023** |
| | (in thousands) | (in thousands) |
| Vasconia equity in losses, net of taxes  | $(2092) | $(5831) |
| Impairment on investment in Vasconia |  | (6834) |
| Equity in (losses) earnings, net of taxes | $(2092) | $(12665) |

---

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

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**<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>**

**LIFETIME BRANDS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**December 31, 2025** 

**NOTE 6 — GOODWILL AND INTANGIBLE ASSETS**

The Company's intangible assets consist of the following (in thousands):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2025** | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
| | **Gross** | **Impairment** | **Accumulated<br>Amortization** | **Net** | **Gross** | **Accumulated<br>Amortization** | **Net** |
| **Goodwill**<sup>(1)</sup> | $33237 | $(33237) | $— | $— | $33237 | $— | $33237 |
| **Finite - lived intangible assets:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Licenses | 15847 |  | (13021) | 2826 | 15847 | (12566) | 3281 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade names | 104617 |  | (35376) | 69241 | 104459 | (28619) | 75840 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Customer relationships | 143159 |  | (83347) | 59812 | 143157 | (73505) | 69652 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 5894 |  | (4851) | 1043 | 5868 | (4351) | 1517 |
| **Total** | $302754 | $(33237) | $(136595) | $132922 | $302568 | $(119041) | $183527 |

---

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

A summary of the activities related to the Company's intangible assets for the years ended December 31, 2025, 2024 and 2023 consists of the following (in thousands):

---

| | | | |
|:---|:---|:---|:---|
| | **Intangible<br>Assets** | **Goodwill** | **Total Intangible<br>Assets and<br>Goodwill** |
| **Goodwill and Intangible Assets, December 31, 2022** | $180650 | $33237 | $213887 |
| Foreign currency translation adjustment | 81 |  | 81 |
| Amortization | (14835) |  | (14835) |
| **Goodwill and Intangible Assets, December 31, 2023** | 165896 | 33237 | 199133 |
| Foreign currency translation adjustment | (17) |  | (17) |
| Amortization | (15589) |  | (15589) |
| **Goodwill and Intangible Assets, December 31, 2024** | 150290 | 33237 | 183527 |
| Foreign currency translation adjustment | 80 |  | 80 |
| Amortization | (17448) |  | (17448) |
| Impairment of goodwill |  | (33237) | (33237) |
| **Goodwill and Intangible Assets, December 31, 2025** | $132922 | $— | $132922 |

---

The weighted-average amortization periods for the Company's finite-lived intangible assets as of December 31, 2025 are as follows:

---

| | |
|:---|:---|
| | **Years** |
| Trade names | 14 |
| Licenses | 33 |
| Customer relationships | 14 |
| Other | 9 |

---

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**<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>**

**LIFETIME BRANDS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**December 31, 2025** 

Estimated amortization expense for each of the five succeeding fiscal years is as follows (in thousands):

---

| | |
|:---|:---|
| | **Year ending December 31,** |
| 2026 | $17078 |
| 2027 | 16374 |
| 2028 | 15915 |
| 2029 | 15468 |
| 2030 | 15106 |

---

**Goodwill impairment test**

The Company reviews goodwill impairment annually as of October 1st or when events or changes in circumstances indicate the carrying value of these assets might exceed their current fair values. For goodwill, impairment testing is based upon the best information available using a combination of the discounted cash flow method, a form of the income approach, and the guideline public company method, a form of the market approach.

The significant assumptions used under the income approach, or discounted cash flow method, are projected net sales, projected earnings before interest, tax, depreciation and amortization ("EBITDA") and the cost of capital. Projected net sales and projected EBITDA were determined to be significant assumptions because they are the primary drivers of the projected cash flows in the discounted cash flow fair value model. Cost of capital was also determined to be a significant assumption as it is the discount rate used to calculate the current fair value of those projected cash flows.

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

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

*International Reporting Unit*

The carrying value of the goodwill for the International reporting unit was zero as of December 31, 2025 and 2024.

*U.S. Reporting Unit*

The carrying value of the goodwill for the U.S. reporting unit was zero as of December 31, 2025.

In the second quarter of 2025, the Company observed a sustained decline in the market valuation of the Company's common stock. Additionally, the Company's near term forecasts for the U.S. reporting unit were revised downward due to changes in retailer and consumer buying patterns, which were impacted by the recent changes in the U.S. tariff policies. Based on these factors the Company concluded that impairment indicators for the U.S. reporting unit were present as of June 30, 2025.

The company performed an interim impairment test of the goodwill in the U.S. reporting unit as of June 30, 2025 by comparing the fair value with its carrying value. The analysis was performed by using a discounted cash flow and market multiple method. Accordingly, this fair value measurement is classified as Level 3 since it is based primarily on unobservable inputs. Based upon the analysis performed, the Company's U.S. reporting unit goodwill was fully impaired and a $33.2 million non-cash goodwill impairment charge was recognized. The goodwill impairment charge was the result of the decline in the Company's near term forecasts that were revised downward due to the changes in retailer and consumer buying patterns and an increase to the company-specific risk premium, which is an input to the cost of capital assumption, to address the potential risks in the long-term forecast which remain uncertain at this time.

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**<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>**

**LIFETIME BRANDS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**December 31, 2025** 

**NOTE 7 — DEBT**

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

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

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

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

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

---

| | | |
|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2024** |
| Maximum aggregate principal allowed | $185588 | $176329 |
| Outstanding borrowings under the ABL Agreement | (54105) | (42693) |
| Standby letters of credit | (11564) | (8828) |
| Total availability under the ABL Agreement | $119919 | $124808 |

---

Availability under the ABL Agreement is limited to the lesser of the $200.0 million commitment 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 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 December 31, 2025, the availability under the ABL Agreement, limited by the Term Loan financial covenant, was $53.1 million.

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

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**<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>**

**LIFETIME BRANDS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**December 31, 2025** 

---

| | | |
|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2024** |
| Current portion of Term Loan: |  |  |
| &nbsp;&nbsp;Term Loan payment | $7500 | $7500 |
| &nbsp;&nbsp;Estimated unamortized debt issuance costs | (2478) | (2609) |
| **Total Current portion of Term Loan** | $5022 | $4891 |
| Non-current portion of Term Loan: |  |  |
| &nbsp;&nbsp;Term Loan, net of current portion | $127500 | $135000 |
| &nbsp;&nbsp;Estimated unamortized debt issuance costs | (1573) | (4051) |
| **Total Non-current portion of Term Loan** | $125927 | $130949 |

---

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

As of December 31, 2025, the future principal payments of the Term Loan are as follows (in thousands):

---

| | |
|:---|:---|
| 2026 | $7500 |
| 2027 | 127500 |
| Total  | $135000 |

---

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 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 December 31, 2025 was between 3.29% and 7.13%. The Company paid a commitment fee of 0.25% on the unused portion of the ABL Agreement during the year ended December 31, 2025.

The Term Loan bears interest, at the Company's option, at one of the following rates: (i) alternate base rate, defined, for any day, as the greater of (x) the prime rate, (y) a federal funds and overnight bank funding based rate plus 0.5%or (z) one-month Adjusted Term SOFR, but not less than 1.0%, plus 1.0%, plus a margin of 4.5% or (ii) Adjusted Term SOFR (Term SOFR plus the Term SOFR Adjustment) for the applicable interest period, but not less than 1.0%, plus a margin of 5.5%. The interest rate on outstanding borrowings under the Term Loan at December 31, 2025 was 9.35%.

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**<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>**

**LIFETIME BRANDS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**December 31, 2025** 

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 December 31, 2025.

*Other Credit Agreements*

A subsidiary of the Company holds a credit facility with HSBC Bank (China) Company Limited, Shanghai Branch ("HSBC China Facility") for up to $10.0 million Chinese renminbi ($1.4 million). In addition, another subsidiary holds a credit facility with Hongkong and Shanghai Banking Corporation Limited ("HSBC Hong Kong Facility" and together with the HSBC China Facility, the "HSBC Facilities") for up to $5.0 million. The HSBC Facilities are subject to annual renewal and may be used to fund general working capital needs of the Company's subsidiaries, which operate as trading companies in China and Hong Kong. Borrowings under the HSBC Facility were guaranteed by the Company and were granted at the sole discretion of HSBC. No borrowings were outstanding under the HSBC Facilities at December 31, 2025 and 2024.

**NOTE 8 — 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 new interest rate swap agreements, each with an aggregate notion value of $25.0 million and expire in August 2027. These interest rate swaps have not been designated as accounting hedges and are intended to serve as cash flow hedges to economically hedge the Company's exposure to the variability in interest payments on a portion of its Term Loan borrowings. Accordingly, changes in fair value are recognized in earnings in the period incurred. The Company's total outstanding notional value of interest rate swaps was $50.0 million at December 31, 2025.

*Foreign Exchange Contracts*

To reduce the impact of changes in foreign currency exchange rates on its results, from time to time the Company is a party to certain foreign exchange contracts, primarily to offset the earnings impact related to fluctuations in foreign currency exchange rates associated with inventory purchases. The Company designates these contracts for accounting purposes as cash flow hedges. The Company purchases foreign currency forward contracts with terms less than 18 months. The aggregate gross notional value of foreign exchange contracts at December 31, 2025 and 2024 were zero and $8.0 million, respectively.

------

**<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>**

**LIFETIME BRANDS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**December 31, 2025** 

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

---

| | | | |
|:---|:---|:---|:---|
| | | **December 31,** | **December 31,** |
|<br>**Derivatives designated as hedging instruments** |<br>**Balance Sheet Location** | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange contracts | Prepaid expenses and other current assets | $— | $256 |

---

---

| | | | |
|:---|:---|:---|:---|
| | | **December 31,** | **December 31,** |
|<br>**Derivatives not designated as hedging instruments** |<br>**Balance Sheet Location** | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps | Prepaid expenses and other current assets | $— | $102 |
|  | Other assets |  | 379 |
|  | Other long-term liabilities | 428 | 154 |

---

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

---

| | | | |
|:---|:---|:---|:---|
| | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** |
|<br>**Derivatives designated as hedging instruments** | **2025** | **2024** | **2023** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps | $— | $(12) | $(93) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange contracts | (291) | 393 | (964) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $(291) | $381 | $(1057) |

---

Realized gains and losses on the interest rate swaps that are reported in other comprehensive income are reclassified into earnings as the interest expense on the debt is recognized.

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 year ended December 31, 2025, the Company reclassified $0.2 million of cash flow hedges in accumulated other comprehensive losses to earnings, related to foreign exchange contracts recognized in cost of sales. At December 31, 2025, the estimated amount of existing net losses expected to be reclassified into earnings within the next 12 months was less than $0.1 million.

During the year ended December 31, 2024, the Company reclassified $0.2 million of cash flow hedges in accumulated other comprehensive losses to earnings, related to foreign exchange contracts recognized in cost of sales.

The amounts of the gains and losses related to the Company's derivative financial instruments not designated as hedging instruments are recognized in earnings as follows (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Derivatives not designated as hedging instruments** |<br>**Location of (loss) gain** | **2025** | **2024** | **2023** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps | Mark to market (loss) gain on interest rate derivatives | $(754) | $(466) | $(499) |
|  | Interest expense | 323 | 1127 | 802 |
|  |  | $(431) | $661 | $303 |

---

------

**<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>**

**LIFETIME BRANDS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**December 31, 2025** 

**NOTE 9 — CAPITAL STOCK**

**Cash dividends**

Dividends were declared in 2025 and 2024 as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Dividend per share** | **Date declared** | **Date of record** | **Payment date** |
| $0.0425 | March 8, 2024 | May 1, 2024 | May 15, 2024 |
| $0.0425 | June 20, 2024 | August 1, 2024 | August 15, 2024 |
| $0.0425 | August 6, 2024 | November 1, 2024 | November 15, 2024 |
| $0.0425 | November 5, 2024 | January 31, 2025 | February 14, 2025 |
| $0.0425 | March 11, 2025 | May 1, 2025 | May 15, 2025 |
| $0.0425 | June 18, 2025 | August 1, 2025 | August 15, 2025 |
| $0.0425 | August 5, 2025 | October 31, 2025 | November 14, 2025 |
| $0.0425 | November 4, 2025 | January 30, 2026 | February 13, 2026 |

---

On March 9, 2026, the Board of Directors declared a quarterly dividend of $0.0425 per share payable on May 15, 2026 to shareholders of record on May 1, 2026.

**Stock repurchase program**

On March 14, 2022, the Company announced that its Board of Directors of the Company authorized the repurchase of up to $20.0 million of the Company's common stock, replacing the Company's previously-authorized $10.0 million share repurchase program. The repurchase authorization permits the Company to effect repurchases from time to time through open market purchases and privately negotiated transactions. No shares were repurchased during the year ended December 31, 2025 and 2024. During the year ended December 31, 2023, the Company repurchased 320,204 shares for a total costs of $2.5 million, and thereafter retired the shares. As of December 31, 2025, the remaining dollar amount available for repurchases under the Board authorized plan was $11.1 million.

**Preferred stock**

The Company is authorized to issue 100 shares of Series A Preferred Stock and 2,000,000 shares of Series B Preferred Stock, none of which has been issued or is outstanding at December 31, 2025.

**Long-term incentive plan**

The Company's Amended and Restated 2000 Long-Term Incentive Plan (the "Plan") provides for the granting of awards of up to 9,717,500 shares of common stock. The Plan authorizes the Board of Directors of the Company, or a duly appointed committee thereof, to issue incentive stock options, non-qualified options, restricted stock, performance-based awards and other stock-based awards. Options that have been granted under the Plan expire over a range of 5 years to 10 years from the date of grant and vest over a range of up to 4 years from the date of grant. Shares of restricted stock that have been granted under the Plan vest over a range of up to 4 years from the date of grant. Performance-based awards that have been granted under the Plan vest after 3 years based upon the attainment of specified performance goals. As of December 31, 2025, there were 913,340 shares available for the grant of awards under the Plan assuming maximum performance of performance-based awards.

------

**<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>**

**LIFETIME BRANDS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**December 31, 2025** 

**Stock options**

A summary of the Company's stock option activity and related information for the three years ended December 31, 2025, is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Options** | **Weighted-<br>average<br>exercise<br>price** | **Weighted-<br>average<br>remaining<br>contractual<br>life (years)** | **Aggregate<br>intrinsic<br>value<br>(in thousands)** |
| **Options outstanding at December 31, 2024** | 782500 | $11.41 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Grants | 44500 | 5.13 |  |  |
| **Options outstanding at December 31, 2025**<sup>(1)</sup> | 827000 | 11.07 | 4.0 | $— |
| **Options exercisable at December 31, 2025** | 700000 | $11.73 | 3.2 | $— |

---

<sup>(1)</sup> 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 December 31, 2025. The intrinsic value is calculated for each in-the-money stock option as the difference between the closing price of the Company's common stock on December 31, 2025 and the exercise price.

No stock options were exercised in the year ended December 31, 2025, 2024 and 2023. The intrinsic value of a stock option that is exercised is calculated at the date of exercise.

Total unrecognized stock option compensation expense at December 31, 2025, before the effect of income taxes, was $0.3 million and is expected to be recognized over a weighted-average period of 1.5 years.

The Company values stock options using the Black-Scholes option valuation model. The Black-Scholes option valuation model, as well as other available models, was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable. The Black-Scholes option valuation model requires the input of highly subjective assumptions including the expected stock price volatility and risk-free interest rate. Because the Company's stock options have characteristics significantly different from those of traded options, changes in the subjective input assumptions can materially affect the fair value estimates of the Company's stock options. The weighted-average per share grant date fair value of stock options granted during the years ended December 31, 2025, 2024 and 2023, was $2.34, $5.13 and $2.61, respectively.

The fair values for these stock options were estimated at the dates of grant using the following weighted-average assumptions:

---

| | | | |
|:---|:---|:---|:---|
| | **2025** | **2024** | **2023** |
| Historical volatility | 60% | 58% | 55% |
| Expected term (years) | 6.3 | 6.3 | 6.3 |
| Risk-free interest rate | 4.11% | 4.07% | 4.25% |
| Expected dividend yield | 3.31% | 1.74% | 2.87% |

---

------

**<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>**

**LIFETIME BRANDS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**December 31, 2025** 

**Restricted Stock**

A summary of the Company's restricted stock activity and related information for the three years ended December 31, 2025 is as follows:

---

| | | |
|:---|:---|:---|
| | **Restricted<br>Shares** | **Weighted-<br>average<br>grant<br>date<br>fair value** |
| **Non-vested restricted shares, December 31, 2024** | 593526 | $9.46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Grants | 588698 | 4.57 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vested | (286320) | 9.96 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forfeitures | (9979) | 7.86 |
| **Non-vested restricted shares, December 31, 2025** | 885925 | $6.06 |
| **Total unrecognized compensation expense remaining (in thousands)** | $3349 |  |
| **Weighted-average years expected to be recognized over** | 1.5 |  |

---

The total fair value of restricted stock that vested during the year ended December 31, 2025, 2024, and 2023 was $1.3 million, $2.8 million, and $1.2 million.

**Performance shares**

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

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

---

| | | |
|:---|:---|:---|
| | **Performance -**<br>**based**<br>**awards** <sup>(1)</sup> | **Weighted-<br>average<br>grant <br>date<br>fair value** |
| **Non-vested performance-based awards, December 31, 2024** | 529407 | $8.96 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Grants | 331561 | 5.13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forfeitures<sup>(3)</sup> | (130171) | 11.91 |
| **Non-vested performance-based awards, December 31, 2025**<sup>(4)</sup> | 730797 | $6.70 |
| **Total unrecognized compensation expense remaining (in thousands)** | $1647 |  |
| **Weighted-average years expected to be recognized over** | 1.6 |  |

---

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

<sup>(2)</sup> Represents the number of shares earned over target for performance-based awards granted in 2020 based on performance goals attained. These awards vested in the three months ended March 31, 2023.

<sup>(3)</sup> Includes the forfeiture of performance-based awards granted in 2022 as the performance metric was not attained.

<sup>(4)</sup> The performance metric for the performance-based awards granted in 2023 was not attained at the end of the performance period. Therefore, no compensation expense has been recorded on these awards and these awards will not vest.

There were no performance-based awards that vested during the year ended December 31, 2025, the total fair value of performance-based awards that vested during the year ended December 31, 2024, and 2023 was $1.5 million and $0.7 million.

On March 9, 2026, the Compensation Committee of the Board of Directors determined the performance goals set forth in the performance-based awards granted in 2023 were not attained.

**Cash-settled performance-based awards**

Each cash-settled performance-based award represents the right to receive up to 150% of the target number of deferred stock units with payment in cash equivalent to the value of one share of the Company's common stock. The number of deferred stock units earned

------

**<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>**

**LIFETIME BRANDS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**December 31, 2025** 

will be determined based on the attainment of specified performance goals at the end of the performance period, as determined by the Compensation Committee of the Board of Directors. The cash-settled performance-based awards are subject to the terms and conditions of the Company's Plan.

A summary of the Company's cash-settled performance-based awards activity and related information for the year ended December 31, 2025 is as follows:

---

| | | |
|:---|:---|:---|
| | **Cash-settled performance-based awards** <sup>(1)</sup> | **Weighted-<br>average fair<br>value** |
| **Non-vested cash-settled performance-based awards, December 31, 2024** | 82176 | $5.91 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cancellations | (82176) | 5.91 |
| **Non-vested cash-settled performance-based awards, December 31, 2025**<sup>(2)</sup> |  | $— |
| **Total unrecognized compensation expense remaining (in thousands)** | $— |  |
| **Weighted-average years expected to be recognized over** | 0.0 |  |

---

<sup>(1)</sup> Represents the target number of units to be settled in cash.

<sup>(2)</sup> The performance metric for the cash-settled performance-based awards granted in 2023 was not attained at the end of the performance period. Therefore, no compensation expense has been recorded on these awards.

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

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| **Stock Compensation Expense Components** | **2025** | **2024** | **2023** |
| Equity based stock option expense | $228 | $245 | $270 |
| Restricted and performance-based stock awards expense | 3076 | 3679 | 3420 |
| **Stock compensation expense for equity based awards** | 3304 | 3924 | 3690 |
| Liability based stock option expense | (3) | (4) | (3) |
| **Total Stock Compensation Expense** | $3301 | $3920 | $3687 |

---

------

**<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>**

**LIFETIME BRANDS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**December 31, 2025** 

**NOTE 10 — 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. 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 years ended December 31, 2025, 2024 and 2023, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **2025** | **2024** | **2023** |
| | (in thousands - except per share amounts) | (in thousands - except per share amounts) | (in thousands - except per share amounts) |
| **Net loss – Basic and Diluted** | $(26937) | $(15165) | $(8412) |
| **Weighted-average shares outstanding – Basic** | 21704 | 21481 | 21195 |
| **Effect of dilutive securities:** |  |  |  |
| Stock options and other stock awards |  |  |  |
| **Weighted-average shares outstanding – Diluted** | 21704 | 21481 | 21195 |
| **Basic loss per common share** | $(1.24) | $(0.71) | $(0.40) |
| **Diluted loss per common share** | $(1.24) | $(0.71) | $(0.40) |
| **Antidilutive shares** <sup>(1)</sup> | 1606 | 1479 | 1633 |

---

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

**NOTE 11 — INCOME TAXES**

The components of (loss) income before income taxes and equity in losses are as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2025** | **2024** | **2023** |
| | (in thousands) | (in thousands) | (in thousands) |
| Domestic | $(19349) | $16509 | $22134 |
| Foreign | (10871) | (12099) | (11659) |
| Foreign - loss on equity securities |  | (14152) |  |
| Total (loss) income before income taxes and equity in losses | $(30220) | $(9742) | $10475 |

---

The (benefit) provision for income taxes (before equity in losses) consists of:

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2025** | **2024** | **2023** |
| | (in thousands) | (in thousands) | (in thousands) |
| Current: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal | $(32) | $4254 | $6326 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State and local | 390 | 913 | 1447 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign | 364 | 203 | 579 |
| Deferred | (4005) | (2039) | (2130) |
| Income tax (benefit) provision | $(3283) | $3331 | $6222 |

---

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

------

**<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>**

**LIFETIME BRANDS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**December 31, 2025** 

Significant components of the Company's deferred income tax assets and (liabilities) are as follows:

---

| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
| | **2025** | **2024** |
| | (in thousands) | (in thousands) |
| Deferred income tax assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | $13903 | $17257 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock options | 858 | 819 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory | 2251 | 2573 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating loss carryforwards | 29383 | 23262 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable allowances | 1929 | 2473 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued compensation | 989 | 979 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred compensation | 458 | 448 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Environmental remediation accrual | 1274 | 1331 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capitalized research and experimental expenditures | 481 | 3881 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 163j interest carryforward | 2929 | 2458 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fixed assets | 214 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S Federal Tax Credits | 1137 | 575 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 2068 | 1396 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deferred income tax assets | $57874 | $57452 |
| Deferred income tax liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | $(11511) | $(14243) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fixed assets |  | (304) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intangibles | (19268) | (26814) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deferred income tax liabilities | (30779) | (41361) |
| Net deferred income tax asset | 27095 | 16091 |
| Valuation allowance | (28649) | (21692) |
| Net deferred income tax liability | $(1554) | $(5601) |

---

As of December 31, 2025, the Company has $7.6 million of capital loss carryforwards in foreign jurisdictions. These losses can be carried forward indefinitely and are fully offset by a valuation allowance.

At December 31, 2025, the Company has net operating losses in foreign jurisdictions of $102.5 million and $11.6 million in state jurisdictions that are fully offset by valuation allowance, and $5.9 million in the U.S. federal jurisdiction, $2.4 million in foreign jurisdictions, and $1.1 million in state jurisdictions that are not offset by valuation allowance. Approximately $104.5 million of foreign net operating losses, $0.1 million of state net operating losses, and $5.9 million of U.S. federal net operating losses can be carried forward indefinitely. The remaining foreign net operating losses, if not utilized, will expire beginning in 2028. The remaining state net operating losses will begin to expire in 2026.

------

**<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>**

**LIFETIME BRANDS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**December 31, 2025** 

The (benefit) provision for income taxes (before equity in losses) differs from the amounts computed by applying the applicable federal statutory rates as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2025** | **2025** | **2024** | **2024** | **2023** | **2023** |
| (in thousands, except percentages) | **Tax effect** | **Rate impact** | **Tax effect** | **Rate impact** | **Tax effect** | **Rate impact** |
| **<u>United States Statutory Tax Rate</u>** | $(6346) | 21.00% | $(2046) | 21.00% | $2200 | 21.00% |
| State and Local Income Taxes, Net of Federal Income Tax Effect<sup>(1)</sup> | (561) | 1.86 | 340 | (3.49) | 598 | 5.71 |
| Foreign Tax Effects |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;*China* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustment of deferred tax liabilities | 5 | (0.02) | 1 | (0.01) | 150 | 1.43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | (5) | 0.02 | 13 | (0.14) | (10) | (0.10) |
| &nbsp;&nbsp;&nbsp;*Hong Kong* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign rate Differential | (17) | 0.06 | 151 | (1.55) | 87 | 0.83 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 141 | (0.47) | (5) | 0.05 | 39 | 0.37 |
| &nbsp;&nbsp;&nbsp;*Jersey* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign rate Differential |  |  | (336) | 3.44 | (326) | (3.12) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;*Mexico* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Book Loss on GV Investment |  |  | 2973 | (30.51) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 31 | (0.10) | 27 | (0.28) | 10 | 0.10 |
| &nbsp;&nbsp;&nbsp;*Netherlands* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustment of deferred tax liabilities | (32) | 0.11 | 256 | (2.63) | 16 | 0.16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in Valuation Allowance |  |  | (778) | 7.98 | (42) | (0.40) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reverse 2022 TP Adjustment |  |  |  |  | 111 | 1.06 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | (6) | 0.02 | (4) | 0.04 | 4 | 0.04 |
| &nbsp;&nbsp;&nbsp;*United Kingdom* |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustment of deferred tax liabilities | (901) | 2.98 | (195) | 2.00 | (186) | (1.77) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in Valuation Allowance | 3526 | (11.67) | 2821 | (28.96) | 3064 | 29.25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign rate Differential | (420) | 1.39 | (420) | 4.31 | (461) | (4.40) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Disallowed Interest |  |  | 336 | (3.44) | 326 | 3.12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 17 | (0.06) | 101 | (1.03) | (90) | (0.86) |
| &nbsp;&nbsp;*Other foreign jurisdictions* | 264 | (0.87) | (62) | 0.64 | (55) | (0.52) |
| Effect of Changes in Tax Laws or Rates Enacted in the Current Period |  |  |  |  |  |  |
| Effect of Cross-Border Tax Laws |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign Tax Withholding | 346 | (1.15) | 170 | (1.75) | 527 | 5.03 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 13 | (0.04) | 31 | (0.32) | 37 | 0.35 |
| Tax Credits |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;R&D CREDIT | (317) | 1.05 | (290) | 2.98 | (266) | (2.54) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign Tax Credit | (245) | 0.81 | (161) | 1.66 | (522) | (4.98) |
| Changes in Valuation Allowances | 978 | (3.24) | (151) | 1.55 | (16) | (0.16) |
| Nontaxable or Nondeductible items |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FDII |  |  | (56) | 0.58 | (132) | (1.26) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-deductible Officer's Compensation | 104 | (0.34) | 653 | (6.70) | 476 | 4.55 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 76 | (0.25) | 83 | (0.85) | 77 | 0.74 |
| Changes in Unrecognized Tax Benefits | (22) | 0.07 | (747) | 7.67 | (97) | (0.93) |
| Other Adjustments |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustment of deferred tax liabilities | 111 | (0.37) | 911 | (9.35) | 839 | 8.01 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Return to Provision | 56 | (0.19) | (285) | 2.91 | (136) | (1.31) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | (79) | 0.30 |  |  |  |  |
| **Effective Tax Rate** | $(3283) | 10.90% | $3331 | (34.20)% | $6222 | 59.40% |

---

<sup>(1)</sup> State taxes in CA and NJ made up the majority (greater than 50 percent) of the tax effect in this category.

------

**<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>**

**LIFETIME BRANDS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**December 31, 2025** 

The estimated values of the Company's gross uncertain tax positions at December 31, 2025, 2024 and 2023 consist of the following:

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2025** | **2024** | **2023** |
| | (in thousands) | (in thousands) | (in thousands) |
| Balance at January 1 | $(457) | $(990) | $(1130) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additions based on tax positions related to the current year | (37) | (27) | (27) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reductions for tax position of prior years | 78 | 560 | 167 |
| Balance at December 31 | $(416) | $(457) | $(990) |

---

The Company had approximately $0.2 million and $0.2 million, net of federal and state tax benefit, accrued at December 31, 2025 and 2024, respectively, for the payment of interest and penalties. The Company's policy for recording interest and penalties is to record such items as a component of the provision for income taxes.

If the Company's tax positions are ultimately sustained, the Company's liability, including interest, would be reduced by $0.7 million, all of which would impact the Company's tax provision. On a quarterly basis, the Company evaluates its tax positions and revises its estimates accordingly.

The Company is no longer subject to U.S. Federal income tax examinations for the years prior to 2022. The Company has identified the following jurisdictions as "major" tax jurisdictions: U.S. Federal, California, New Jersey, New York, and the United Kingdom. At December 31, 2025, the periods subject to examination by the Company's major state jurisdictions are generally for the years ended 2021 through 2024. In certain jurisdictions, Filament, an acquired entity, may have additional periods subject to examination. As of December 31, 2025, there are no material assessments in any given year.

The following table presents cash paid for taxes (net of refunds) by jurisdiction for the year ended December 31, 2025:

---

| | |
|:---|:---|
| | **Year Ended December 31,** |
| | **2025** |
| | (in thousands) |
| Federal taxes |  |
| &nbsp;&nbsp;&nbsp;United States | $2185 |
| State |  |
| &nbsp;&nbsp;&nbsp;Other state jurisdictions | 600 |
| Foreign |  |
| &nbsp;&nbsp;&nbsp;Canada | 274 |
| &nbsp;&nbsp;&nbsp;Other foreign jurisdictions | 114 |
|  | $3173 |

---

On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted into law. The OBBBA includes significant changes to U.S. corporate tax provisions of the Tax Cuts and Jobs Act. Notably, it allows an immediate deduction for domestic research and development expenditures, reinstates 100% bonus depreciation, decreases the limitation on deductible interest expense, and modifies the international tax framework. The legislation has multiple effective dates, with certain provisions effective starting in 2025 and others in the subsequent years. The Company was able to reduce their cash tax expense in the year ended December 31, 2025 from the changes implemented in OBBBA by utilizing the allowable acceleration of deductions for depreciation and domestic capitalized R&D expenses, as well as the increased deduction for interest expense, which reduced federal taxable income in the year.

------

**<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>**

**LIFETIME BRANDS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**December 31, 2025** 

**NOTE 12** — **BUSINESS SEGMENTS**

**Segment information**

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

The Company's chief operation decision maker ("CODM") is the Company's Chief Executive Officer. The Company has segmented its operations to reflect the manner in which the CODM reviews and evaluates the results of its operations. The CODM allocates operating and capital resources and evaluates the performance of the Company's segments based on segment net sales, segment gross margin, and segment (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.

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2025** | **2024** | **2023** |
| **Segment Performance Measures:**  |  | (in thousands) |  |
| **Net sales:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. | $591244 | $627202 | $633079 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;International | 56689 | 55750 | 53604 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net sales | $647933 | $682952 | $686683 |
| **Gross margin:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. | $220780 | $240265 | $236568 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;International | 19915 | 20438 | 18071 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total gross margin | $240695 | $260703 | $254639 |
| **(Loss) income from operations:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. | $10851 | $57215 | $63341 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;International | (9256) | (10523) | (11064) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unallocated corporate expenses | (11031) | (19608) | (20336) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total (loss) income from operations | $(9436) | $27084 | $31941 |

---

------

**<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>**

**LIFETIME BRANDS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**December 31, 2025** 

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2025** | **2024** | **2023** |
| **Supplemental information for significant segment expenses:** |  | (in thousands) |  |
| **Cost of sales:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. | $370464 | $386937 | $396511 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;International | 36774 | 35312 | 35533 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of sales | $407238 | $422249 | $432044 |
| **Freight-out expenses:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. | $14645 | $13487 | $13636 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;International | 2932 | 3099 | 3402 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total freight-out expenses | $17577 | $16586 | $17038 |
| **Warehouse expenses:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. | $44569 | $46545 | $42148 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;International | 11978 | 10679 | 10008 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total warehouse expenses | $56547 | $57224 | $52156 |
| **Selling, general and administrative expenses:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. | $117478 | $123018 | $117443 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;International | 13933 | 17183 | 15725 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unallocated corporate expenses<sup>(1)</sup> | 11031 | 19608 | 19480 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total selling, general and administrative expenses | $142442 | $159809 | $152648 |
| **Goodwill impairment:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. | $33237 | $— | $— |
| **Restructuring expenses:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;International | $328 | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unallocated corporate expenses |  |  | 856 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expenses | $328 | $— | $856 |

---

<sup>(1)</sup> Unallocated corporate expenses for the year ended 2025 included a net legal settlement gain of $6.4 million. Details see NOTE 13 — COMMITMENTS AND CONTINGENCIES

---

| | | | |
|:---|:---|:---|:---|
| | **December 31,** | **December 31,** | **December 31,** |
| | **2025** | **2024** | **2023** |
| | (in thousands) | (in thousands) | (in thousands) |
| **Depreciation and amortization:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. | $20522 | $21144 | $18489 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;International | 1326 | 1170 | 1082 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total depreciation and amortization | $21848 | $22314 | $19571 |
| **Capital expenditures:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. | $4229 | $1931 | $2427 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;International | 125 | 296 | 374 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total capital expenditures | $4354 | $2227 | $2801 |

---

------

**<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>**

**LIFETIME BRANDS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**December 31, 2025** 

---

| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
| | **2025** | **2024** |
| | (in thousands) | (in thousands) |
| **Assets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. | $482467 | $542420 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;International | 84249 | 88961 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unallocated corporate | 5839 | 2929 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $572555 | $634310 |

---

**Geographical information**

The following table sets forth long-lived assets by the major geographic locations:

---

| | | |
|:---|:---|:---|
| | **December,** | **December,** |
| | **2025** | **2024** |
| | (in thousands) | (in thousands) |
| **Long-lived assets, excluding intangible assets, at period-end:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;United States | $44170 | $54526 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;United Kingdom | 20452 | 21187 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rest of World | 1118 | 1502 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $65740 | $77215 |

---

------

**<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>**

**LIFETIME BRANDS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**December 31, 2025** 

**NOTE 13 — COMMITMENTS AND CONTINGENCIES**

**Royalties**

The Company has license agreements that require the payment of minimum royalties on sales of licensed products. The estimated future minimum royalties payable under the noncancellable term of these agreements are as follows (in thousands):

---

| | |
|:---|:---|
| **Year ending December 31,** | |
| 2026 | $8551 |

---

**Legal proceedings**

*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.

------

**<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>**

**LIFETIME BRANDS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**December 31, 2025** 

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 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, 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 EPA on May 30, 2025, and awaits EPA 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 December 31, 2025, the remaining probable and reasonably estimable liability related to the above remedial design and remedial action for OU-1 is $5.3 million.

*Gain Contingency Settlement*

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

*Other*

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

**NOTE 14 — RETIREMENT PLANS**

**401(k) plan and other defined contribution plans**

The Company maintains a defined contribution retirement plan for eligible employees under Section 401(k) of the Internal Revenue Code. Participants can make voluntary contributions up to the Internal Revenue Service limit of $23,500 ($31,000 for employees 50 years old or over) for 2025. The Company's United Kingdom-based subsidiary, Lifetime Brands Europe Limited, maintains a defined contribution pension plan.

**Retirement benefit obligations**

The Company assumed retirement benefit obligations, which are paid to certain former executives of a business acquired in 2006. The obligations under the agreements with these former executives are unfunded and amounted to $4.7 million at December 31, 2025 and $4.7 million at December 31, 2024.

The discount rate used to calculate the retirement benefit obligations was 5.07% at December 31, 2025 and 5.35% at December 31, 2024. The retirement benefit obligations are included in accrued expenses and other long-term liabilities.

The Company expects to recognize less than $0.1 million of actuarial losses included in accumulated other comprehensive loss in net periodic benefit cost in 2026.

------

**<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>**

**LIFETIME BRANDS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**December 31, 2025** 

Expected benefit payments for each of the next five fiscal years and in the aggregate for the five fiscal years thereafter are as follows (in thousands):

**Year ending December 31,**

---

| | |
|:---|:---|
| 2026 | $354 |
| 2027 | 350 |
| 2028 | 345 |
| 2029 | 340 |
| 2030 | 335 |
| 2031 through 2035 | 1570 |

---

**NOTE 15 — OTHER**

**Inventory**

The components of inventory are as follows:

---

| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
| | **2025** | **2024** |
| | (in thousands) | (in thousands) |
| Finished goods | $185157 | $192480 |
| Work in process | 20 | 62 |
| Raw materials | 8869 | 9866 |
| Total | $194046 | $202408 |

---

**Property and equipment**

Property and equipment (including finance leases) consist of:

---

| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
| | **2025** | **2024** |
| | (in thousands) | (in thousands) |
| Machinery, furniture and equipment | $82973 | $83622 |
| Leasehold improvements | 40044 | 39377 |
| Computer hardware and software | 39627 | 39154 |
| Building and improvements | 1127 | 983 |
| Construction in progress | 2759 | 381 |
| Land | 100 | 100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 166630 | 163617 |
| Less: accumulated depreciation and amortization | (151189) | (148568) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $15441 | $15049 |

---

Depreciation and amortization expense of property and equipment for the years ended December 31, 2025, 2024 and 2023 was $4.4 million, $6.7 million and $4.7 million, respectively.

------

**<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>**

**LIFETIME BRANDS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**December 31, 2025** 

**Accrued expenses**

Accrued expenses consist of:

---

| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
| | **2025** | **2024** |
| | (in thousands) | (in thousands) |
| Customer allowances and rebates | $26093 | $25527 |
| Compensation and benefits | 7794 | 13286 |
| Vendor invoices | 5449 | 9677 |
| Freight | 8636 | 5912 |
| Professional fees | 4660 | 2628 |
| Royalties | 1632 | 5598 |
| Accrued asset retirement obligations | 1419 |  |
| Wallace facility remediation | 831 | 980 |
| Interest | 717 | 1026 |
| Other non-income tax liabilities | 612 | 1164 |
| Commissions | 514 | 646 |
| Other | 5937 | 4404 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $64294 | $70848 |

---

Customer allowances and rebates, includes estimated variable consideration related to certain advertising, sales incentives and promotional deductions, volume rebates as well as allowances for returns.

**Other long-term liabilities**

Other long-term liabilities consist of:

---

| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
| | **2025** | **2024** |
| | (in thousands) | (in thousands) |
| Retirement benefit obligations | $4387 | $4315 |
| Wallace facility remediation | 4457 | 4457 |
| Other non-income tax liabilities | 2401 | 3075 |
| Other long-term obligations | 3016 | 4108 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $14261 | $15955 |

---

**Supplemental disclosure of cash flow information**

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2025** | **2024** | **2023** |
| | | (in thousands) | |
| Cash paid for interest | $17651 | $19961 | $18626 |
| Cash paid for taxes, net of refunds | 3173 | 5962 | 8054 |

---

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**<u>[**Table of Contents**](#i54ce78ac179642c5b4be2feadb06906c_160)</u>**

**LIFETIME BRANDS, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**December 31, 2025** 

**Components of accumulated other comprehensive loss, net**

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2025** | **2024** | **2023** |
| | | (in thousands) | |
| *Accumulated translation adjustment:* |  |  |  |
| Balance at beginning of year | $(18384) | $(32614) | $(36072) |
| &nbsp;&nbsp;&nbsp;&nbsp;Translation adjustment during period | 686 | 78 | 3458 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amount reclassified from accumulated other comprehensive loss <sup>(1)</sup> |  | 14152 |  |
| Translation Adjustment | 686 | 14230 | 3458 |
| Balance at end of year | $(17698) | $(18384) | $(32614) |
| *Accumulated deferred (losses) gains on cash flow hedges:* |  |  |  |
| Balance at beginning of year | $247 | $(134) | $923 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in unrealized (losses) gains | (534) | 199 | (527) |
| Amounts reclassified from accumulated other comprehensive loss: <sup>(2)</sup> |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Settlement of cash flow hedges | 243 | 182 | (530) |
| Net change in cash flow hedges, net of taxes of $0, $12 and $(30) | (291) | 381 | (1057) |
| Balance at end of year | $(44) | $247 | $(134) |
| *Accumulated effect of retirement benefit obligations:* |  |  |  |
| Balance at beginning of year | $(178) | $(751) | $(705) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in retirement benefit obligations, net of tax of $47, $(173) and $31 | (142) | 519 | (93) |
| Amount reclassified from accumulated other comprehensive loss:<sup>(3)</sup> |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of loss, net of tax of $(6), $(17) and $(16) | 17 | 54 | 47 |
| Net effects of retirement benefit obligations | (125) | 573 | (46) |
| Balance at end of year | $(303) | $(178) | $(751) |
| Total accumulated other comprehensive loss at end of period | $(18045) | $(18315) | $(33499) |

---

<sup>(1)</sup> Amount is recorded in equity in losses on the consolidated statements of operations. 

<sup>(2)</sup> Amounts are recorded in interest expense and cost of goods sold on the consolidated statements of operations.

<sup>(3)</sup> Amount is recorded in selling, general and administrative expenses on the consolidated statements of operations.

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**Item 15(a)**

**LIFETIME BRANDS, INC.**

**SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS**

(in thousands)

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| | | | | |
|:---|:---|:---|:---|:---|
| **<u>COL. A</u>** | **COL. B** | **COL. C** | **COL. D** | **COL. E** |
| **<u>Description</u>** | **Balance at<br>beginning<br>of period** | **Additions** | **Deductions** | **Balance at<br>end of<br>period** |
| **Accounts receivable allowances:**  | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Year ended December 31, 2025 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance for doubtful accounts<sup>(a)</sup> | $8192 | $1110 | $(2811) | $6491 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance for anticipated customer deductions<sup>(b)</sup> | 5901 | 7833 | (8255) | 5479 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total accounts receivable allowances: | $14093 | $8943 | $(11066) | $11970 |
| &nbsp;&nbsp;&nbsp;&nbsp;Year ended December 31, 2024 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance for doubtful accounts<sup>(a)</sup> | $7311 | $950 | $(69) | $8192 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance for anticipated customer deductions<sup>(b)</sup> | 8641 | 3837 | (6577) | 5901 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total accounts receivable allowances: | $15952 | $4787 | $(6646) | $14093 |
| &nbsp;&nbsp;&nbsp;&nbsp;Year ended December 31, 2023 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance for doubtful accounts<sup>(a)</sup> | $5195 | $2116 | $— | $7311 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance for anticipated customer deductions<sup>(b)</sup> | 9411 | 6900 | (7670) | 8641 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total accounts receivable allowances: | $14606 | $9016 | $(7670) | $15952 |
| **Deferred tax valuation allowance:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Year ended December 31, 2025 | $21692 | $7251 | $(294) | $28649 |
| &nbsp;&nbsp;&nbsp;&nbsp;Year ended December 31, 2024 | 20159 | 2516 | (983) | 21692 |
| &nbsp;&nbsp;&nbsp;&nbsp;Year ended December 31, 2023 | 16323 | 3895 | (59) | 20159 |

---

<sup>(a)</sup>The allowance for doubtful accounts represents 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. Additions to the allowance for doubtful accounts are recognized in selling, general and administrative expense in the Company's consolidated statement of operations. Deductions to the allowance for doubtful accounts represents receivables previously reserved that have been written-off, less any recoveries.

<sup>(b)</sup>Additions to the allowance for anticipated customer deductions is recognized as a reduction of net sales. Deductions to the allowance for anticipated customer deductions includes deductions that were ultimately taken by the customer.

## Exhibit 21.1

**Exhibit 21.1** 

**Subsidiaries of the Registrant** 

---

| | | |
|:---|:---|:---|
| **Name of subsidiary** | **State/Country of Incorporation** | **Ownership** |
| Creative Tops Limited | United Kingdom | 100% |
| Lifetime Brands Europe B.V. | Netherlands | 100% |
| Grand Venture Enterprises Limited | Hong Kong | 100% |
| La Cafetiere (UK) Limited | United Kingdom | 100% |
| Lifetime Brands Europe Limited | United Kingdom | 100% |
| Lifetime Brands Global Limited | Hong Kong | 100% |
| Lifetime Brands, Inc. (HK) Limited | Hong Kong | 100% |
| Lifetime Brands Global Trading (Shanghai) Company Limited | China | 100% |
| Lifetime Brands International Shanghai | China | 100% |
| Lifetime Brands Holdings Limited | United Kingdom | 100% |
| Lifetime Brands UK Limited | United Kingdom | 100% |
| New Goal Development Limited | Hong Kong | 100% |
| Pfaltzgraff Factory Stores, Inc. | Delaware | 100% |
| The Chef'n Corporation | Washington | 100% |
| Thomas Plant (Birmingham) Holdings Limited | United Kingdom | 100% |
| Wallace Silversmiths de Puerto Rico Ltd. | Cayman Islands | 100% |
| Exacture LLC | Delaware | 100% |
| LTB Maquila Factory Imports I, LLC | Delaware | 100% |
| LTB Maquila Factory Imports II, LLC | Delaware | 100% |
| Lifetime Brands Maquila México, S. de R.L. de C.V. | Mexico | 100% |
| LTB de México, S.A. de C.V. | Mexico | 100% |
| Lifetime Brands Australia Pty Limited | Australia | 100% |
| Lifetime Brands New Zealand Pty Limited | New Zealand | 100% |

---

## Exhibit 23.1

**Exhibit 23.1** 

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We consent to the incorporation by reference in the Registration Statements (Form S-8 Nos. 333-265931, 333-105382, 333-146017, 333-162734, 333-186208, 333-208961, 333-221613, 333-226666, 333-239539, 333-280493) pertaining to the Amended and Restated 2000 Long-Term Incentive Plan of Lifetime Brands, Inc. of our reports dated March 12, 2026, with respect to the consolidated financial statements and schedule of Lifetime Brands, Inc., and the effectiveness of internal control over financial reporting of Lifetime Brands, Inc. included in this Annual Report (Form 10-K) for the year ended December 31, 2025.

---

| |
|:---|
| /s/ ERNST & YOUNG LLP |
| Jericho, New York<br>March 12, 2026 |

---

## Exhibit 23.2

**Exhibit 23.2** 

**Consent of Independent Registered Public Accounting Firm**

**To the Board of Directors and Stockholders of** 

**Grupo Vasconia, S.A.B.**

We hereby consent to the incorporation by reference in the Registration Statements on Form S-8 (Nos. 333-265931, 333-105382, 333-146017, 333-162734, 333-186208, 333-208961, 333-221613, 333-226666, 333-239539 and 333-280493) of Lifetime Brands, Inc. of our report dated March 12, 2024 relating to the consolidated financial statements (not presented separately therein) of Grupo Vasconia, S.A.B. and subsidiaries (the "Company") included in the December 31, 2023 annual report on Form 10-K of Lifetime Brands, Inc. Our report contains an explanatory paragraph related to the Company's ability to continue as a going concern.

Our report dated March 12, 2024 contains an explanatory paragraph that states that International Financial Reporting Standards as issued by the IASB vary in certain significant respects from generally accepted accounting principles in the United States of America. Information relating to the nature and effect of such differences is presented in note 23 to the consolidated financial statements of the Company.

Castillo Miranda y Compañía, S.C. (BDO Mexico)

---

| |
|:---|
| /s/ C.P.C. Carlos Enrique Charraga Sanchez |
| C.P.C. Carlos Enrique Charraga Sanchez |
| Partner |
| Mexico City, Mexico |
| March 12, 2026 |

---

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION**

I, Robert B. Kay, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this Annual Report on Form 10-K of Lifetime Brands, Inc. ("the registrant");

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

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

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

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

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

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

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

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

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

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

.

---

| |
|:---|
| Date: March 12, 2026 |
| /s/ Robert B. Kay |
| Robert B. Kay<br>Chief Executive Officer and Director |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION**

I, Laurence Winoker, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this Annual Report on Form 10-K of Lifetime Brands, Inc. ("the registrant");

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

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

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

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

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

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

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

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

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

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

---

| |
|:---|
| Date: March 12, 2026 |
| /s/ Laurence Winoker |
| Laurence Winoker<br>Executive Vice President, Treasurer and Chief Financial Officer |

---

## Exhibit 32.1

**Exhibit 32.1**

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Company's Annual Report on Form 10-K for the year ended December 31, 2025 (the "Form 10-K") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

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

---

| | |
|:---|:---|
| /s/ Robert B. Kay | /s/ Laurence Winoker |
| Robert B. Kay<br>Chief Executive Officer and Director | Laurence Winoker<br>Executive Vice President, Treasurer<br>and Chief Financial Officer |
| Date: March 12, 2026 | Date: March 12, 2026 |

---

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

This certification is being furnished solely pursuant to 18 U.S.C. 1350, shall not be deemed "filed" with the Securities and Exchange Commission for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to liability under that section, and shall not be deemed incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, irrespective of any general incorporation by reference language contained in such filing.

## Exhibit 99.1

**Exhibit 99.1** 

**Report of independent registered public accounting firm**

Stockholders and Board of Directors

Grupo Vasconia, S. A. B.

**Opinion on the consolidated financial statements** 

We have audited the accompanying consolidated statements of financial position of Grupo Vasconia S. A. B. and Subsidiaries (the "Company") as of December 31, 2023 and 2022, and the related consolidated statements of comprehensive income, changes in equity, and cash flows for each of the three years in the period ended December 31, 2023, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2023, in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IASB").

**Going Concern**

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 13 to the accompanying consolidated financial statements, the Company has faced liquidity and solvency problems as a result of the decrease in margins and cash flows of its subsidiary Almexa Aluminio, S. A. de C. V. (Almexa), originated by various internal and market circumstances. As a result of this situation, as of June 2023, the Company and Almexa suspended the payments of the debt service contracted with their banking and stock market creditors, having previously received the consent of its creditors until the restructuring of these banking and stock market liabilities is agreed. As of that date and until the date of issuance of this report, the Company is in the process of negotiating with its banking creditors and holders of stock certificates, aimed at obtaining a definitive agreement on the long-term restructuring of these debts, for which monthly waiting agreements have been signed and extended with the objective, among others, of determining the form and times to implement and document the refinancing of the Company and Almexa. Due to this situation and having cross-default clauses in the debt contracts, in accordance with the provisions of International Accounting Standard 1, the bank and stock market debt contracted in the long term has been reclassified to short term, resulting in the consolidated financial statements as of December 31, 2023, presenting a negative working capital position.

These events or conditions raise substantial doubt about the Company's ability to continue as a going concern. To remedy this situation, the plans developed by the Company's management are described in Note 13 aforementioned, highlighting: i) achieving a long-term restructuring agreement with all its creditors; ii) ensuring that its subsidiaries generate sufficient cash flows for their operation and to cover the service of the restructured debt and; iii) obtaining fresh cash resources. The attached financial statements do not include adjustments that may arise due to this uncertainty.

**Differences from U.S. generally accepted accounting principles**

International Financial Reporting Standards as issued by the IASB vary in certain significant respects from U.S. generally accepted accounting principles. Information relating to the nature and effect of such differences is presented in Note 23 to the consolidated financial statements.

------

**Basis for Opinion** 

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB and in accordance with International Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audit provides a reasonable basis for our opinion.

**Critical Audit Matters**

Critical audit matters are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: relate to accounts or disclosures that are material to the consolidated financial statements and involved our especially challenging, subjective, or complex judgments.- The communication of critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which they relate.

**Going concern evaluation**

As mentioned in Note 13, management determined that its consolidated financial statements as at December 31, 2023, have been prepared under the assumption that it operates on a going concern basis. This going concern evaluation is considered a critical audit matter.

Our audit procedures, among other things, included the following, i) evaluate the plans of the administration to renegotiate the debt; ii) review the extensions granted by the creditors monthly; iii) evaluate the historical and projected information on operating profit or loss financial structure; iv) analyze the the feasibility of the future projects of the Company v) analyze the main financial ratios, key indexes and indicators of the industry in which the Company operates.

**Assessment of recoverability of deferred tax assets**

As discussed in Note 21 to the consolidated financial statements, as at December 31, 2023 the Company recorded deferred tax assets of $285,226,576 relating to tax losses incurred and temporary differences. The assessment of the recoverability of these deferred tax assets is dependent on the generation of future taxable income. Significant judgment and estimation is required to assess the sufficiency of future taxable income to utilize the recognized deferred tax assets. The Company uses projections of future taxable income in order to assess the probability that the deferred tax assets will be realized. Predicting future taxable income is dependent on assumptions and judgments regarding future market conditions, production rates, and intercompany sales. The Company determined that the realization of these deferred tax assets is probable.

------

The primary procedures we performed to address this critical audit matter to assess the Company's estimate of future taxable income, include the evaluation of key assumptions in the model by comparing: (i) forecast of aluminum prices to published views of independent market participants, (ii) foreign exchange rates to external analyst estimates, and (iii) forecast sales to historical trends, approved budgets and committed sales volumes. We performed a sensitivity analysis over the key assumptions to assess their impact on the Company's determination that the deferred tax assets were realizable.

CASTILLO MIRANDA Y COMPAÑÍA, S.C.

/s/ Carlos Enrique Charraga Sanchez

Carlos Enrique Charraga Sanchez

We have served as the Company's auditor since 2018.

Mexico City, Mexico

March 12, 2024

<br>