Facing macroeconomic challenges, Lifetime reports net loss for Q2
Lifetime’s net sales for the quarter dropped 19% to $151.3 million, from $186.6 million a year ago. For the six months ended June 30, the company reported a net loss of $3.08 million, down from net income of $8.86 million for the same period a year ago. Net sales for the first six months were $334 million, down 12.6% from $382.3 million a year ago.
The company’s performance “was impacted by the macroeconomic challenges that companies across industries and retailers in particular continue to face,” said CEO Rob Kay. “Inflation and supply chain disruptions have created inventory buildup in the retail channel and weaker end market demand as these impacts created a slowdown in durable good purchases from consumers and all channels of retail this quarter.”
Despite this, the company’s results “exceeded pre-pandemic levels, which is a testament to the progress the company has made executing on our strategy,” Kay said. “We believe we have positioned Lifetime to navigate these headwinds and we have taken a number of mitigating actions, including implementing pricing adjustments where possible and reducing our SG&A over the course of 2022.”
Because of the current environment, the company is revising its outlook for full year 2022, Kay said. Net sales are now expected to range from $800 million to $850 million and its adjusted EBITDA to range between $73 million and $79 million, he said.