Lifetime Brands rises on 30-store closure announcement

Lifetime Brands, Inc. (Nasdaq: LCUT) shares are rising after the maker of kitchen and home décor products announced before the opening that it will close 30 underperforming outlet stores.

“While we are very pleased with the progress that our direct to consumer management team has made in revitalizing our retail stores, we determined that certain locations do not have the potential to show meaningful profits and should be closed,” CEO Jeffrey Siegel said in a statement.

The firm projects it will record a $2 million pre-tax charge related to the store closings, or about $0.08 per share. As a result, Lifetime now expects fiscal 2007 earnings in the range of $1.02 to $1.12 per share, compared with $1.14 during 2006. Analysts expect 2007 earnings of $0.98 per share.

The company also reported that it’s doubling the size of its stock repurchase authorization to $40 million, from a previous $20 million.
 
 “Our board unanimously agreed to increase the size of our stock repurchase program. This underscores our belief that Lifetime is in a strong position to achieve its goals for aggressive growth and increased profitability in 2008 and beyond,” Siegel said.

In morning trading, LCUT shares are up 1.79%, or $0.23, at $13.05. Over the last 52 weeks, shares have ranged from $11.95 to $23.43.

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