LIFETIME BRANDS, INC

Previous wording

The Company sources almost all of its products 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. In 2025, the Company implemented several actions to mitigate the impact of the tariffs imposed by the U.S. administration. For example, the Company negotiated price increases to its U.S. customers which went into effect in the third quarter of 2025. The Company’s tariff mitigation strategy was intended to maintain the Company’s gross margin dollars and therefore, may result in a decline in gross margin percentage.

Current wording

The Company sources almost all of its products 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. In 2025, the Company implemented several actions to mitigate the impact of the tariffs imposed by the U.S. administration. For example, the Company negotiated price increases to its U.S. customers which went into effect in the third quarter of 2025.

Previous wording

On February 20, 2026, the U.S. Supreme Court held that the U.S. administration’s imposition of tariffs 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 did 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 also initiated additional trade remedy investigations pursuant to Section 301 of the Trade Act of 1974, one affecting 60 trading partners with respect to the prohibition of forced labor and another affecting 16 trading partners with respect to excess manufacturing capacity. The administration further announced that it would be initiating additional investigations with respect to certain unidentified product sectors pursuant to Section 232 of the Trade Expansion Act of 1962. In April 2026, the CBP launched Phase One of the Consolidated Administration and Processing of Entries ("CAPE") program to process refunds and begin making refund payments to importers of record in May 2026. As of June 29, 2026, the CBP has launched Phase Two of the IEEPA refund claims process. The Company has submitted all refunds claims under Phase One and continues to actively engage with its custom brokers and outside legal counsel for refunds that fall under Phase 2. The total refund claims related to the IEEPA tariff totaled $41.7 million.

Current wording

On February 20, 2026, the U.S. Supreme Court invalidated the IEEPA tariff though it did not address tariff refunds. The U.S. Supreme Court’s ruling did not affect other recently imposed tariffs, nor did it prohibit the imposition of future tariffs through alternative trade authorities. Effective February 24, 2026, the U.S. administration imposed 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. The U.S. administration also initiated additional trade remedy investigations pursuant to Section 301 of the Trade Act of 1974 and Section 232 of the Trade Expansion Act of 1962. CBP has now opened three phases of CAPE to issue refunds to affected importers. As of September 30, 2026, the Company has submitted all eligible refund claims under Phase One and Phase Two and continues to actively engage with its customs brokers and outside legal counsel on these refunds. The total refund claims related to the IEEPA tariff totaled $41.7 million.

Previous wording

During the three months ended June 30, 2026, the Company concluded that $40.1 million of tariff refunds were probable of being recovered and recognized the refund as a reduction to cost of goods sold of $40.1 million in the condensed consolidated financial statements. As of June 30, 2026, the Company received $3.5 million and recorded $36.6 million of outstanding IEEPA tariffs receivables within prepaid and other current assets in the condensed consolidated balance sheet. Subsequent to the balance sheet date, the Company received an additional $32.9 million in tariff refunds.

Current wording

During the three months ended June 30, 2026, the Company concluded that $40.1 million of tariff refunds were probable of being recovered and recognized the refund as a reduction to cost of goods sold in the condensed consolidated financial statements. As of September 30, 2026, the Company had collected $37.3 million of these refunds, with the remaining $2.8 million IEEPA tariff receivable recorded within prepaid and other current assets in the condensed consolidated balance sheet.

Previous wording

The temporary Section 122 tariffs expired on July 24, 2026, and are the subject of ongoing legal challenges after being initially invalidated at the Court of International Trade, adding further uncertainty to the tariff outlook. As the Section 122 tariffs were expiring, the U.S. administration announced completion of a Section 301 investigation into the prohibition and elimination of merchandise produced with forced labor, imposing additional tariffs of 10% or 12.5% on sixty trading partners, affecting the majority of U.S. imports. The tariffs became effective July 24, 2026, and litigation challenging those tariffs was filed later that same day.

Current wording

29 - were expiring, the U.S. administration announced completion of a Section 301 investigation into the prohibition and elimination of merchandise produced with forced labor, imposing additional tariffs of 10% or 12.5% on 60 trading partners, affecting the majority of U.S. imports. The tariffs became effective July 24, 2026, and litigation challenging those tariffs was filed later that same day. In October 2026, the U.S. and China announced targeted tariff reduction measures on a number of Chinese-origin goods, including consumer and household goods, as well as U.S. goods imported into China. The trade truce is currently scheduled through January 10, 2027, as a negotiation window for broader trade relations.

Previous wording

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.

Current wording

If tariff 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.

Previous wording

Escalating geopolitical conflicts in the Middle East, including shipping disruptions in the Strait of Hormuz, have led to increased volatility on global energy prices. Sustained increases in energy costs could materially increase the Company’s product and transportation costs, including through higher input costs and increased fuel prices, which typically lead to fuel surcharges and higher freight rates from third-party logistics providers. This could increase the Company’s distribution and inbound freight costs. The duration of the conflict and the potential for further escalation, including military actions, sanctions, ordisruptions to key trade routes, could adversely affect the global macroeconomic environment, and in turn, negatively impact consumer spending and demand for the Company’s products. The Company continues to monitor these developments; however the extent and duration of their impact remain uncertain. If energy prices remain elevated or if macroeconomic conditions deteriorate, the Company’s results of operations and financial condition could be materially adversely affected.

Current wording

Escalating geopolitical conflicts in the Middle East, including shipping disruptions in the Strait of Hormuz, have led to increased volatility in global energy prices. Sustained increases in energy costs could materially increase the Company’s product and transportation costs, including through higher input costs and increased fuel prices, which typically lead to fuel surcharges and higher freight rates from third-party logistics providers. This could increase the Company’s distribution and inbound freight costs. The duration of these conflicts and the potential for further escalation, including military actions, sanctions, ordisruptions to key trade routes, could adversely affect the global macroeconomic environment, and in turn, negatively impact consumer spending and demand for the Company’s products. The Company continues to monitor these developments; however the extent and duration of their impact remain uncertain. If energy prices remain elevated or if macroeconomic conditions deteriorate, the Company’s results of operations and financial condition could be materially adversely affected.

Previous wording

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”). The Company commenced operations at the Hagerstown Facility in the second quarter of 2026. The initial ramp-up resulted in unplanned expenses and shipping delays. Management has taken corrective actions and beginning in August, shipments are back to normal. While the Company believes the disruption has been completely ameliorated, if shipping delays re-occur or other transition challenges arise, the Company's results of operations and financial condition could be materially adversely affected.

Current wording

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”). The Company commenced operations at the Hagerstown Facility in the second quarter of 2026. The initial ramp-up resulted in unplanned expenses and temporary shipping delays. Management implemented corrective actions and shipment volumes normalized by the end of the third quarter of 2026. The increase in operating expenses was primarily attributed to higher labor cost as a result of operational inefficiencies during the transition to the new warehouse and training of a new workforce. While the Company believes the disruptions have resolved, if shipping delays re-occur or other transition challenges arise, the Company's results of operations and financial condition could be materially adversely affected.

Previous wording

The new Hagerstown Facility requires capital expenditures for equipment and certain leasehold improvements that are estimated to be approximately $9.8 million, of which $3.2 million remains to be purchased as of June 30, 2026. The Company incurred capital expenditures related to this relocation of $4.3 million during the six months ended June 30, 2026 and $2.3 million during the year ended December 31, 2025.

Current wording

The new Hagerstown Facility requires capital expenditures for equipment and certain leasehold improvements that are estimated to be approximately $10.0 million, of which $0.2 million remains to be purchased as of September 30, 2026. The Company incurred capital expenditures related to this relocation of $7.5 million during the nine months ended September 30, 2026 and $2.3 million during the year ended December 31, 2025.

Previous wording

•$1.2 million and $2.4 million for the three and six months ended June 30, 2026, respectively, related to employee severance. This expense has been recorded within restructuring expense in the condensed consolidated statement of operations.

Current wording

•$0.5 million and $2.9 million for the three and nine months ended September 30, 2026, respectively, related to employee severance. This expense has been recorded within restructuring expense in the condensed consolidated statement of operations.

Previous wording

•$2.2 million and $2.4 million for the three and six months ended June 30, 2026, respectively, related to exit and start-up costs which include relocation of inventory, recruiting and training expenses, set up costs and lease expenses for the nonoperational portion of the old and new facilities. These expenses have been recorded within distribution expense in the condensed consolidated statement of operations.

Current wording

•$5.3 million and $7.2 million for the three and nine months ended September 30, 2026, respectively, related to exit and start-up costs which include relocation of inventory, recruiting and training expenses, labor costs, set-up costs and

Previous wording

•For the remainder of 2026, the Company expects to incur remaining costs of approximately $0.6 million, in employee severance, $2.7 million in exit costs and $4.6 million in start-up costs.

Current wording

•For the remainder of 2026, the Company expects to incur remaining costs of approximately $0.1 million, in employee severance, $1.9 million in exit costs and $2.3 million in start-up costs.

Previous wording

•On March 26, 2026, the Company announced a second reorganization of its international workforce in connection with Project Concord. The restructuring expenses related to severance associated with the reorganization of $0.2 million was recorded in the six months ended June 30, 2026.

Current wording

•On July 8, 2025, the Company announced a reorganization of its international workforce in connection with Project Concord. The restructuring expenses related to severance associated with the reorganization of $0.3 million was recorded for the nine months ended September 30, 2025.

Previous wording

•On July 8, 2025, the Company announced a reorganization of its international workforce in connection with Project Concord. The restructuring expenses related to severance associated with the reorganization of $0.3 million was recorded in the third quarter of 2025.

Current wording

•During the nine months ended September 30, 2026, the Company announced a second reorganization of its international workforce in connection with Project Concord. In connection with these actions, the Company recorded restructuring expenses related to severance associated with the reorganization of $0.3 million for the nine months ended September 30, 2026.

Previous wording

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.

Current wording

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 in the U.K., the European Union and the Asia Pacific region.

Previous wording

Consolidated net sales for the three months ended June 30, 2026 were $141.6 million, representing an increase of $9.7 million, or 7.4%, as compared to net sales of $131.9 million for the corresponding period in 2025. In constant currency, a non-GAAP financial measure, which excludes the impact of foreign exchange fluctuations and was determined by applying 2026 average rates to 2025 local currency amounts, consolidated net sales increased by $9.5 million, or 7.2%, as compared to consolidated net sales in the corresponding period in 2025.

Current wording

Consolidated net sales for the three months ended September 30, 2026 were $177.7 million, representing an increase of $5.8 million, or 3.4%, as compared to net sales of $171.9 million for the corresponding period in 2025. In constant currency, a non-GAAP financial measure, which excludes the impact of foreign exchange fluctuations and was determined by applying 2026 average rates to 2025 local currency amounts, consolidated net sales increased by $5.8 million, or 3.4%, as compared to consolidated net sales in the corresponding period in 2025.

Previous wording

Net sales for the U.S. segment’s Tableware product category were $23.6 million for the three months ended June 30, 2026, an increase of $2.3 million, or 10.8%, as compared to $21.3 million for the corresponding period in 2025. The increase was primarily attributable to higher sales in the warehouse club channel for dinnerware.

Current wording

Net sales for the U.S. segment’s Tableware product category were $41.5 million for the three months ended September 30, 2026, an increase of $9.9 million, or 31.3%, as compared to $31.6 million for the corresponding period in 2025. The increase was primarily attributable to higher sales of flatware in the warehouse club channel.

Previous wording

Net sales for the U.S. segment’s Home Solutions product category were $45.5 million for the six months ended June 30, 2026, an increase of $8.6 million, or 23.3%, as compared to $36.9 million for the corresponding period in 2025. The increase was primarily attributable to higher sales for home décor products in the warehouse club and dollar channel.

Current wording

Net sales for the U.S. segment’s Home Solutions product category were $29.9 million for the three months ended September 30, 2026, an increase of $2.0 million, or 7.2%, as compared to $27.9 million for the corresponding period in 2025. The increase was attributable to higher sales for home décor products in the warehouse club channel and higher sales in the back-to-school lunch box category. These increases partially offset the lower sales of hydration and bath measurement products.

Previous wording

Net sales for the International segment were $13.4 million for the three months ended June 30, 2026, an increase of $0.8 million, or 6.3%, as compared to net sales of $12.6 million for the corresponding period in 2025. In constant currency, a non-GAAP financial measure, which excludes the impact of foreign exchange fluctuations, net sales increased by $0.7 million, or 5.3%, as compared to consolidated net sales in the corresponding period in 2025. The increase was driven by higher selling prices in Asia-Pacific region, higher sales for retail customers in Australia and New Zealand, as well as higher sales in continental Europe. These increases were partially offset by lower sales in the U.K.

Current wording

Net sales for the International segment were $16.4 million for the three months ended September 30, 2026, an increase of $2.6 million, or 18.8%, as compared to net sales of $13.8 million for the corresponding period in 2025. In constant currency, a non-GAAP financial measure, which excludes the impact of foreign exchange fluctuations, net sales increased by $2.6 million, or 18.9%, as compared to consolidated net sales in the corresponding period in 2025. The increase was driven by higher selling prices in the U.K., continental Europe and Asia-Pacific region and continued growth with retail customers in Australia and New Zealand.

Previous wording

Distribution expenses for the three months ended June 30, 2026 were $20.1 million, as compared to $17.3 million for the corresponding period in 2025. Distribution expenses as a percentage of net sales were 14.2% for the three months ended June 30, 2026, as compared to 13.1% for the three months ended June 30, 2025.

Current wording

Distribution expenses for the three months ended September 30, 2026 were $26.1 million, as compared to $17.9 million for the corresponding period in 2025. Distribution expenses as a percentage of net sales were 14.7% for the three months ended September 30, 2026, as compared to 10.4% for the three months ended September 30, 2025.

Previous wording

Distribution expenses as a percentage of net sales for the U.S. segment were 12.8% and 11.4% for the three months ended June 30, 2026 and 2025, respectively. Distribution expense during the three months ended June 30, 2026 and 2025 included $2.2 million and $0.1 million for relocation and redesign costs related to the Company’s warehouses. As a percentage of sales shipped from the Company’s U.S. warehouses, excluding non-recurring expenses, distribution expenses were 11.9% and 11.0%

Current wording

Distribution expenses as a percentage of net sales for the U.S. segment were 14.0% and 9.0% for the three months ended September 30, 2026 and 2025, respectively. Distribution expense during the three months ended September 30, 2026 and 2025 included $5.3 million and $0.1 million for relocation and redesign costs related to the Company’s warehouses. As a percentage

Previous wording

Distribution expenses as a percentage of net sales for the International segment were 27.3% for the three months ended June 30, 2026, compared to 29.8% for the corresponding period in 2025. As a percentage of sales shipped from the Company’s international warehouses distribution expenses were 24.2% and 26.8% for the three months ended June 30, 2026 and 2025, respectively. The decrease in expenses as a percentage of sales was attributable to higher sales resulting in a favorable impact of fixed expenses.

Current wording

Distribution expenses as a percentage of net sales for the International segment were 21.2% for the three months ended September 30, 2026, compared to 27.1% for the corresponding period in 2025. As a percentage of sales shipped from the Company’s international warehouses distribution expenses were 20.4% and 22.6% for the three months ended September 30, 2026 and 2025, respectively. The decrease in expenses as a percentage of sales was primarily attributable to higher sales resulting in a favorable impact of fixed expenses.

Previous wording

Unallocated corporate expenses for the three months ended June 30, 2026 was $5.1 million, as compared to expenses of $4.3 million for the corresponding period in 2025. The increase compared to the prior period was attributable to an increase in professional fees and legal expenses, and higher incentive compensation in the current period.

Current wording

Unallocated corporate expenses for the three months ended September 30, 2026 was $4.4 million, as compared to expenses of $3.7 million for the corresponding period in 2025. The increase compared to the prior period was attributable to an increase in professional fees and legal expenses, and higher incentive compensation in the current period.

Previous wording

Restructuring expenses for the three months ended June 30, 2026 were $2.0 million, which consist of employee severance expenses related to the east coast distribution facility relocation of $1.2 million, and restructuring expenses with the closure of certain manufacturing operations of $0.8 million. See NOTE 1 — BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES to the unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information.

Current wording

Restructuring expenses for the three months ended September 30, 2026 were $0.6 million, as compared to expenses of $0.3 million for the corresponding period in 2025. Restructuring expenses in the current period consist of employee severance expenses related to the east coast distribution facility relocation of $0.5 million, and Project Concord severance expense of $0.1 million. Restructuring expenses in the prior period was related to Project Concord. See NOTE 1 — BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES to the unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information.

Previous wording

Interest expense was $4.1 million and $5.1 million for the three months ended June 30, 2026 and 2025, respectively. The decrease in expense was a result of lower average outstanding borrowings in the current period, and lower interest rates on outstanding borrowings.

Current wording

Interest expense, net was $2.1 million and $5.0 million for the three months ended September 30, 2026 and 2025, respectively. The decrease in expense was primarily attributable to lower average outstanding borrowings in the current period and higher interest income from tariff refunds, partially offset by higher interest rates on outstanding borrowings.

Previous wording

Mark to market gain on interest rate derivatives was $0.2 million for the three months ended June 30, 2026, as compared to mark to market loss of $0.2 million for the three months ended June 30, 2025. The gain (loss) recognized for the three months ended June 30, 2026 and 2025, respectively, was attributable to the change in the fair value due to the change in the projected interest rate environment. The mark to market amount represents the change in fair value on the Company’s interest rate derivatives that have not been designated as hedging instruments. These derivatives were entered into for purposes of locking-in

Current wording

Mark to market loss on interest rate derivatives were less than $0.1 million for the three months ended September 30, 2026 and 2025. The (loss) gain recognized for the three months ended September 30, 2026 and 2025, respectively, was attributable to the change in the fair value due to the change in the projected interest rate environment. The mark to market amount represents the change in fair value on the Company’s interest rate derivatives that have not been designated as hedging instruments. These derivatives were entered into for purposes of locking-in a fixed interest rate on a portion of the Company’s variable interest rate debt. As of September 30, 2026, the intent of the Company is to hold these derivative contracts until their maturity.

Previous wording

Income tax provision of $8.1 million and income tax benefit of $2.8 million for the three months ended June 30, 2026 and 2025, respectively, represent taxes on both U.S. and foreign earnings at a combined effective income tax rate of 29.2% and benefit rate of 6.5%, respectively. The effective tax rate for the three months ended June 30, 2026 differs from the federal statutory income tax rate of 21.0% primarily due to the impact of non-deductible expenses. The effective tax rate for the three months ended June 30, 2025 differs from the federal statutory income tax rate of 21.0% primarily due to a partial valuation allowance on U.S. deferred tax assets that are not more likely than not to be realized as a result of the goodwill impairment in the second quarter.

Current wording

Income tax benefit of $0.4 million and income tax provision of $2.9 million for the three months ended September 30, 2026 and 2025, respectively, represent taxes on both U.S. and foreign earnings at a combined effective benefit tax rate of 9.3% and provision tax rate of 171.1%, respectively. The effective tax rate for the three months ended September 30, 2026 differs from the federal statutory income tax rate of 21.0% primarily due to the impact of foreign losses for which no tax benefit is recognized as such amounts are fully offset with a valuation allowance. The effective tax rate for the three months ended September 30, 2025 differs from the federal statutory income tax rate of 21.0% primarily due to the impact of non-deductible expenses, foreign losses for which no tax benefit is recognized as such amounts are fully offset with a valuation allowance and a partial valuation allowance on U.S. deferred tax assets that are not more likely than not to be realized as a result of the goodwill impairment in the second quarter.

Previous wording

Consolidated net sales for the six months ended June 30, 2026 were $285.1 million, an increase of $13.2 million, or 4.9%, as compared to net sales of $271.9 million for the corresponding period in 2025. In constant currency, a non-GAAP financial measure, which excludes the impact of foreign exchange fluctuations and was determined by applying 2026 average rates to 2025 local currency amounts, consolidated net sales increased by $12.0 million, or 4.4%, as compared to consolidated net sales in the corresponding period in 2025.

Current wording

Consolidated net sales for the nine months ended September 30, 2026 were $462.8 million, an increase of $18.9 million, or 4.3%, as compared to net sales of $443.9 million for the corresponding period in 2025. In constant currency, a non-GAAP financial measure, which excludes the impact of foreign exchange fluctuations and was determined by applying 2026 average rates to 2025 local currency amounts, consolidated net sales increased by $17.8 million, or 4.0%, as compared to consolidated net sales in the corresponding period in 2025.

Previous wording

Net sales for the U.S. segment for the six months ended June 30, 2026 were $258.9 million, an increase of $11.1 million, or 4.5%, as compared to net sales of $247.8 million for the corresponding period in 2025. For the six months ended June 30, 2026, net sales were favorably impacted by higher selling prices, reflecting the implementation of price increases for the Company's U.S. customers that became effective during the third quarter of 2025.

Current wording

Net sales for the U.S. segment for the nine months ended September 30, 2026 were $420.2 million, an increase of $14.2 million, or 3.5%, as compared to net sales of $406.0 million for the corresponding period in 2025. For the nine months ended September 30, 2026, net sales were favorably impacted by higher selling prices, reflecting the implementation of price increases for the Company's U.S. customers that became effective during the third quarter of 2025.

Previous wording

Net sales for the U.S. segment’s Kitchenware product category were $163.9 million for the six months ended June 30, 2026, an increase of $1.9 million, or 1.2%, as compared to $162.0 million for the corresponding period in 2025. The increase was driven by higher sales for kitchen tools and kitchen measurement products, partially offset by lower sales for cutlery and boards, bakeware products and specialty kitchenware products.

Current wording

Net sales for the U.S. segment’s Kitchenware product category were $253.8 million for the nine months ended September 30, 2026, a decrease of $6.9 million, or 2.6%, as compared to $260.7 million for the corresponding period in 2025. The decrease was driven by lower sales for cutlery and boards, barware products, specialty kitchenware products and kitchen measurement products, partially offset by higher sales of kitchen tools and bakeware products.

Previous wording

Net sales for the U.S. segment’s Tableware product category were $49.5 million for the six months ended June 30, 2026, an increase of $0.6 million, or 1.2%, as compared to $48.9 million for the corresponding period in 2025. The increase was driven by warehouse club programs for flatware and dinnerware, partially offset by lower sales for dinnerware in the dollar channel.

Current wording

Net sales for the U.S. segment’s Tableware product category were $91.0 million for the nine months ended September 30, 2026, an increase of $10.5 million, or 13.0%, as compared to $80.5 million for the corresponding period in 2025. The increase was driven by higher flatware sales in the warehouse club channel, partially offset by lower sales for dinnerware in the warehouse club channel and lower sales in the e-commerce channel.

Previous wording

Net sales for the U.S. segment’s Home Solutions product category were $19.2 million for the three months ended June 30, 2026, an increase of $3.7 million, or 23.9%, as compared to $15.5 million for the corresponding period in 2025. The increase was primarily attributable to higher sales for home décor products in the warehouse club and dollar channel.

Current wording

Net sales for the U.S. segment’s Home Solutions product category were $75.4 million for the nine months ended September 30, 2026, an increase of $10.6 million, or 16.4%, as compared to $64.8 million for the corresponding period in 2025. The increase was primarily attributable to higher sales for home décor products in the warehouse club and dollar channel. An increase in sales in the back-to-school lunch box category was partially offset by lower sales of hydration products.

Previous wording

Net sales for the International segment were $26.2 million for the six months ended June 30, 2026, an increase of $2.1 million, or 8.7%, as compared to net sales of $24.1 million for the corresponding period in 2025. In constant currency, a non-GAAP financial measure, which excludes the impact of foreign exchange fluctuations, net sales increased by $1.0 million, or 3.9%, as compared to consolidated net sales in the corresponding period in 2025. The increase was driven by higher selling prices in Asia-Pacific region, higher sales for retail customers in Australia and New Zealand, as well as higher sales in continental Europe. These increases were partially offset by lower sales in the U.K.

Current wording

Net sales for the International segment were $42.6 million for the nine months ended September 30, 2026, an increase of $4.7 million, or 12.4%, as compared to net sales of $37.9 million for the corresponding period in 2025. In constant currency, a non-GAAP financial measure, which excludes the impact of foreign exchange fluctuations, net sales increased by $3.6 million, or 9.3%, as compared to consolidated net sales in the corresponding period in 2025. The increase was driven by higher selling prices in the U.K., continental Europe and Asia-Pacific region and continued growth with retail customers in Australia and New Zealand.

Previous wording

Gross margin for the U.S. segment was $87.5 million, or 68.3%, for the three months ended June 30, 2026, as compared to $46.7 million, or 39.1%, for the corresponding period in 2025. The increase was driven by a benefit in the current period from tariff refunds of $40.1 million related to prior periods, higher selling prices, partially offset by product mix.

Current wording

Gross margin for the U.S. segment was $196.3 million, or 46.7%, for the nine months ended September 30, 2026, as compared to $148.9 million, or 36.7%, for the corresponding period in 2025. The increase was driven by a benefit in the current period from tariff refunds of $40.1 million related to prior periods, higher selling prices, partially offset by product mix and a $2.0 million inventory reserve associated with a SKU rationalization.

Previous wording

Distribution expenses for the six months ended June 30, 2026 were $37.7 million, as compared to $35.4 million for the corresponding period in 2025. Distribution expenses as a percentage of net sales were 13.2% for the six months ended June 30, 2026, as compared to 13.0% for the six months ended June 30, 2025.

Current wording

Distribution expenses for the nine months ended September 30, 2026 were $63.8 million, as compared to $53.3 million for the corresponding period in 2025. Distribution expenses as a percentage of net sales were 13.8% for the nine months ended September 30, 2026, as compared to 12.0% for the nine months ended September 30, 2025.

Previous wording

Distribution expenses as a percentage of net sales for the U.S. segment were 11.8% and 11.4% for the six months ended June 30, 2026 and 2025, respectively. Distribution expenses during the six months ended June 30, 2026 and 2025 included $2.4 million and $0.1 million, respectively, for relocation and redesign costs related to the Company's warehouses. As a percentage of sales shipped from the Company’s U.S. warehouses, excluding non-recurring expenses, distribution expenses were 11.4% and 11.5% for the six months ended June 30, 2026 and 2025, respectively. The decrease in expenses as a percentage of sales was attributable to lower volume due to sales mix resulting in a decrease of employee expenses, partially offset by higher insurance expenses.

Current wording

Distribution expenses as a percentage of net sales for the U.S. segment were 12.7% and 10.5% for the nine months ended September 30, 2026 and 2025, respectively. Distribution expenses during the nine months ended September 30, 2026 and 2025 included $7.2 million and $0.2 million, respectively, for relocation and redesign costs related to the Company's warehouses. As a percentage of sales shipped from the Company’s U.S. warehouses, excluding these non-recurring expenses, distribution expenses were 11.5% and 10.3% for the nine months ended September 30, 2026 and 2025, respectively. The increase in expenses as a percentage of sales was primarily attributable to an increase in facility and insurance expenses, and higher depreciation expense.

Previous wording

Distribution expenses as a percentage of net sales for the International segment were 26.9% for the six months ended June 30, 2026, compared to 29.1% for the corresponding period in 2025. As a percentage of sales shipped from the Company’s international warehouses, distribution expenses were 23.7% and 25.9% for the six months ended June 30, 2026 and 2025, respectively. The decrease in expenses as a percentage of sales was primarily attributed to lower warehouse expenses, higher sales resulting in a favorable impact of fixed expenses, partially offset by an increase in freight-out expenses due to volume increase and customer mix.

Current wording

Distribution expenses as a percentage of net sales for the International segment were 24.7% for the nine months ended September 30, 2026, compared to 28.4% for the corresponding period in 2025. As a percentage of sales shipped from the Company’s international warehouses, distribution expenses were 22.5% and 24.6% for the nine months ended September 30, 2026 and 2025, respectively. The decrease in expenses as a percentage of sales was primarily attributed to higher sales resulting in a favorable impact of fixed expenses.

Previous wording

Selling, general and administrative expenses for the U.S. segment were $31.2 million for the three months ended June 30, 2026, as compared to $29.5 million for the corresponding period in 2025. As a percentage of net sales, selling, general and administrative expenses were 24.3% and 24.7% for the three months ended June 30, 2026 and 2025, respectively. The increase in selling, general and administrative expenses was attributable to higher incentive compensation, partially offset by a decrease in the provision for doubtful accounts in the current period. The decrease in selling, general and administrative expenses as a percentage of net sales, was also attributable to the impact of fixed costs on higher sales volume.

Current wording

Selling, general and administrative expenses for the U.S. segment were $89.5 million for the nine months ended September 30, 2026, as compared to $87.9 million for the corresponding period in 2025. As a percentage of net sales, selling, general and administrative expenses were 21.3% and 21.7% for the nine months ended September 30, 2026 and 2025, respectively. The increase in selling, general and administrative expenses was primarily attributed to higher incentive compensation, partially offset by a decrease in provision for doubtful accounts in the current period. The decrease in selling, general and administrative expenses as a percentage of net sales was attributable to the impact of fixed costs on higher sales volume.

Previous wording

Unallocated corporate expenses for the six months ended June 30, 2026 were $10.0 million, as compared to expenses of $2.1 million for the corresponding period in 2025. The increase in expenses was driven by the recognition of a net legal settlement gain of $6.4 million in the prior period, an increase in professional fees and legal expenses, and higher incentive compensation in the current period.

Current wording

Unallocated corporate expenses for the nine months ended September 30, 2026 were $14.4 million, as compared to expenses of $5.8 million for the corresponding period in 2025. The increase in expenses was driven by the recognition of a net legal settlement gain of $6.4 million in the prior period, an increase in professional fees and legal expenses, and higher incentive compensation in the current period.

Previous wording

Restructuring expenses were $4.0 million for the six months ended June 30, 2026, which consist of restructuring expenses related to the east coast distribution facility relocation of $2.4 million, restructuring expenses with the closure of certain manufacturing operations of $1.4 million, and Project Concord severance expense of $0.2 million. See NOTE 1 — BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES to the unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information.

Current wording

Restructuring expenses were $4.7 million for the nine months ended September 30, 2026, as compared to $0.3 million for the corresponding period in 2025. Restructuring expenses in the current period consist of restructuring expenses related to the east coast distribution facility relocation of $2.9 million, restructuring expenses with the closure of certain manufacturing operations of $1.4 million, and Project Concord severance expense of $0.4 million. Restructuring expenses in the prior period was related to Project Concord. See NOTE 1 — BASIS OF PRESENTATION AND SUMMARY OF ACCOUNTING POLICIES to the unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information.

Previous wording

Interest expense was $8.6 million and $10.0 million for the six months ended June 30, 2026 and 2025, respectively. The decrease in expense was a result of lower average outstanding borrowings in the current period.

Current wording

Interest expense, net was $10.7 million and $15.0 million for the nine months ended September 30, 2026 and 2025, respectively. The decrease in expense was primarily attributable to lower average outstanding borrowings in the current period and higher interest income from tariff refunds, partially offset by higher interest rates on outstanding borrowings.