Form 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

Date of report (Date of earliest event reported): March 11, 2016

 

 

Lifetime Brands, Inc.

(Exact Name of Registrant as Specified in Its Charter)

 

 

Delaware

(State or Other Jurisdiction of Incorporation)

 

0-19254   11-2682486

(Commission

File Number)

 

(IRS Employer

Identification No.)

1000 Stewart Avenue, Garden City, New York 11530

(Address of Principal Executive Offices) (Zip Code)

(Registrant’s Telephone Number, Including Area Code) 516-683-6000

(Former Name or Former Address, if Changed Since Last Report) N/A

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

  ¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

  ¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

  ¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

  ¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 2.02 Results of Operations and Financial Condition.

On March 11, 2016, Lifetime Brands, Inc. (the “Company”) issued a press release announcing the Company’s results for the fourth quarter and year ended December 31, 2015. A copy of the Company’s press release is furnished as Exhibit 99.1 hereto.


Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

 

99.1    Press release dated March 11, 2016


Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Lifetime Brands, Inc.
By:  

/s/ Laurence Winoker

  Laurence Winoker
 

Senior Vice President – Finance, Treasurer

and Chief Financial Officer

Date: March 11, 2016


Exhibit Index

 

Exhibit
No.

  

Description

99.1    Press release dated March 11, 2016
EX-99.1

Exhibit 99.1

 

LOGO

Lifetime Brands, Inc. Reports Fourth Quarter 2015 Financial Results

GARDEN CITY, NY, March 11, 2016 – Lifetime Brands, Inc. (NasdaqGS: LCUT), a leading global provider of branded kitchenware, tableware and other products used in the home, today reported its financial results for the fourth quarter and year ended December 31, 2015.

Fourth Quarter Financial Highlights:

 

    Consolidated net sales were $185.9 million in the quarter ended December 31, 2015; a decrease of $4.1 million, or 2%, as compared to consolidated net sales of $190.0 million for the corresponding period in 2014. In constant currency, which excludes the impact of foreign exchange fluctuations, consolidated net sales decreased 1.2%, as compared to consolidated net sales in the corresponding period in 2014.

 

    Gross margin was $69.0 million, or 37.1%, in the quarter ended December 31, 2015 as compared to $69.8 million, or 36.7%, for the corresponding period in 2014.

 

    Income from operations was $17.6 million, as compared to $18.3 million in the prior year’s quarter.

 

    Net income was $11.0 million, or $0.77 per diluted share, in the quarter ended December 31, 2015, as compared to net income of $9.3 million, or $0.66 per diluted share, in the corresponding period in 2014.

 

    Adjusted net income was $10.8 million, or $0.75 per diluted share, in the quarter ended December 31, 2015, as compared to adjusted net income of $9.4 million, or $0.66 per diluted share, in the corresponding period in 2014.

 

    Consolidated EBITDA was $23.9 million, equal to 12.9% of consolidated net sales, in the quarter ended December 31, 2015, as compared to $20.9 million, or 11.0% of consolidated net sales, for the corresponding 2014 period.

 

    Equity in earnings, net of taxes, was $0.7 million for the three months ended December 31, 2015, as compared to equity in losses of $1.1 million for the three months ended December 31, 2014.

Full Year Financial Highlights:

 

    Consolidated net sales were $587.7 million in the year ended December 31, 2015; an increase of $1.7 million, or 0.3%, as compared to consolidated net sales of $586.0 million for the corresponding period in 2014. In constant currency, consolidated net sales increased 2.3%.

 

    Gross margin was $214.4 million, or 36.5%, in the year ended December 31, 2015 as compared to $212.9 million, or 36.3%, for the corresponding period in 2014.

 

1


    Income from operations was $24.2 million, as compared to $21.4 million in the prior year.

 

    Net income was $12.3 million, or $0.86 per diluted share, in the year ended December 31, 2015, as compared to net income of $1.5 million, or $0.11 per diluted share, in the corresponding period in 2014.

 

    Adjusted net income was $14.2 million, or $1.00 per diluted share, in the year ended December 31, 2015, as compared to adjusted net income of $10.3 million, or $0.73 per diluted share, in the corresponding period in 2014.

 

    Consolidated EBITDA was $44.9 million in the year ended December 31, 2015, as compared to $42.5 million for the corresponding 2014 period.

 

    Equity in earnings, net of taxes, was $0.6 million for the year ended December 31, 2015, as compared to equity in losses, net of taxes, of $6.5 million. The 2014 period includes a charge of $6.0 million, net of tax, for the reduction in the fair value of the Company’s investment in GS Internacional S/A.

Jeffrey Siegel, Lifetime’s Chairman and Chief Executive Officer, commented,

“In 2015, net sales in the Company’s U.S. wholesale segment grew by 3.9%. Sales of kitchenware, tableware and home solutions products all rose, with a particularly strong increase in our home décor product category, where we leveraged the Bombay® license for giftables. In kitchenware, we benefited from strong increases in cutlery and the expansion of our important Farberware® brand, which is increasingly accepted as ‘America’s Housewares Brand.’ Tableware sales also rose, reflecting good reception of several new programs for dinnerware and flatware.

“The strength in the Company’s U.S. operations was offset by currency challenges in the U.K., where our businesses were adversely affected by weakness of the British pound relative to the dollar, which on a relative basis increased cost of goods, which are sourced in dollars, and by weakness of the euro relative to the pound, which hurt export sales. Nevertheless, improved operating margins produced a 5.5% increase in consolidated EBITDA, which grew to $44.9 million.

“With the assistance of a major international consulting firm, we recently began an in-depth review of Lifetime’s U.S. wholesale businesses to ensure that we have the right structure to grow and thrive in today’s complex business environment. The study — which includes evaluations of our divisional organization structure, product pipeline and brand management, as well as SKU rationalization and SG&A spending — will serve as a blueprint to right size Lifetime’s SG&A expense base, realign our operating structure and redirect our operating activities to increase our efficiency and effectiveness. When fully implemented, we believe our business will be in a stronger position to achieve future growth and improved profitability.

“So far this year, we have shown our line-up of new products for 2016 at the Birmingham Spring Fair, at Ambiente in Frankfurt and, just this week, in Chicago at the International Home + Housewares Show. I am very pleased to report that the reaction to our new products was overwhelmingly positive. To succeed with today’s consumers, housewares manufacturers need to deliver improved performance, expanded function and great design. The wide array of new products we offered clearly showed that Lifetime is leading this effort, keeping ahead of the curve on the ever-evolving kitchenware industry.

 

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“While we believe that our strong position with major retailers in the U.S. and the U.K., our expanding footprint with independent retailers world-wide and the breadth of new product offerings should enable us to grow at an accelerated pace, we are mindful of the risks posed by the possibility of some weakness in the U.S. retail sector, continued foreign exchange challenges and economic uncertainty in some key international markets. Consequently, at this point in the year, we expect low- to mid- single digit overall sales growth for 2016.”

Dividend    

On Thursday, March 3, 2016, the Board of Directors declared a quarterly dividend of $0.0425 per share payable on May 16, 2016 to shareholders of record on May 2, 2016.

Conference Call

The Company has scheduled a conference call for Friday, March 11, 2016 at 11:00 a.m. ET. The dial-in number for the conference call is (866) 271-6130 or (617) 213-8894 passcode #85615758. A live webcast of the conference call will be accessible through http://edge.media-server.com/m/p/hnrtzbon. For those who cannot listen to the live broadcast, an audio replay of the webcast will be available.

Non-GAAP Financial Measures

This earnings release contains non-GAAP financial measures. A non-GAAP financial measure is a numerical measure of a company’s historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statements of income, balance sheets, or statements of cash flows of the Company; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. As required by SEC rules, the Company has provided reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures. These non-GAAP measures are provided because management of the Company uses these financial measures in evaluating the Company’s on-going financial results and trends, and management believes that exclusion of certain items allows for more accurate comparison of the Company’s operating performance. Management uses this non-GAAP information as an indicator of business performance. These non-GAAP measures should be viewed as a supplement to, and not a substitute for, GAAP measures of performance.

Forward-Looking Statements

In this press release, the use of the words “believe,” “could,” “expect,” “may,” “positioned,” “project,” “projected,” “should,” “will,” “would” or similar expressions is intended to identify forward-looking statements that represent the Company’s current judgment about possible future events. The Company believes these judgments are reasonable, but these statements are not guarantees of any events or financial results, and actual results may differ materially due to a variety of important factors. Such factors might include, among others, the Company’s ability to comply with the requirements of its credit agreements; the availability of funding under such

 

3


credit agreements; the Company’s ability to maintain adequate liquidity and financing sources and an appropriate level of debt; changes in general economic conditions which could affect customer payment practices or consumer spending; the impact of foreign exchange fluctuations; the impact of changes in general economic conditions on the Company’s customers; changes in demand for the Company’s products; shortages of and price volatility for certain commodities; significant changes in the competitive environment and the effect of competition on the Company’s markets, including on the Company’s pricing policies, financing sources and an appropriate level of debt.

Lifetime Brands, Inc.

Lifetime Brands is a leading global provider of kitchenware, tableware and other products used in the home. The Company markets its products under such well-known kitchenware brands as Farberware®, KitchenAid®, Cuisine de France®, Fred® & Friends, Guy Fieri®, Kitchen Craft®, Kizmos, La Cafetière®, Misto®, Mossy Oak®, Pedrini®, Sabatier®, Savora and Vasconia®; respected tableware brands such as Mikasa®, Pfaltzgraff®, Creative Tops®, Gorham®, International® Silver, Kirk Stieff®, Sasaki®, Towle® Silversmiths, Tuttle®, Wallace®, V&A® and Royal Botanic Gardens Kew®; and home solutions brands, including Kamenstein®, Bombay®, BUILT®, Debbie Meyer® and Design for Living. The Company also provides exclusive private label products to leading retailers worldwide.

The Company’s corporate website is www.lifetimebrands.com.

Contacts:

 

Lifetime Brands, Inc.    LHA
Laurence Winoker, Chief Financial Officer    Harriet Fried, SVP
516-203-3590    212-838-3777
investor.relations@lifetimebrands.com    hfried@lhai.com

 

4


LIFETIME BRANDS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands - except per share data)

 

     Three Months Ended
December 31,
    Year Ended
December 31,
 
     2015     2014     2015     2014  

Net sales

   $ 185,880      $ 190,034      $ 587,670      $ 586,010   

Cost of sales

     116,865        120,260        373,284        373,129   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross margin

     69,015        69,774        214,386        212,881   

Distribution expenses

     15,437        16,134        54,815        54,202   

Selling, general and administrative expenses

     35,514        35,330        134,903        133,786   

Intangible asset impairment

     —          —          —          3,384   

Restructuring expenses

     437        —          437        125   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

     17,627        18,310        24,231        21,384   

Interest expense

     (1,402     (1,658     (5,746     (6,418

Financing expense

     —          (758     (154     (758

Loss on early retirement of debt

     —          (27     —          (346
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes and equity in earnings

     16,225        15,867        18,331        13,862   

Income tax provision

     (5,962     (5,473     (6,627     (5,825

Equity in earnings (losses), net of taxes

     743        (1,133     574        (6,493
  

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME

   $ 11,006      $ 9,261      $ 12,278      $ 1,544   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted-average shares outstanding- basic

     13,929        13,695        13,850        13,519   
  

 

 

   

 

 

   

 

 

   

 

 

 

BASIC INCOME PER COMMON SHARE

   $ 0.79      $ 0.68      $ 0.89      $ 0.11   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted-average shares outstanding- diluted

     14,336        14,115        14,266        13,974   
  

 

 

   

 

 

   

 

 

   

 

 

 

DILUTED INCOME PER COMMON SHARE

   $ 0.77      $ 0.66      $ 0.86      $ 0.11   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash dividends declared per common share

   $ 0.0425      $ 0.0375      $ 0.16      $ 0.15   

 

5


LIFETIME BRANDS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands - except share data)

 

     December 31,  
     2015     2014  

ASSETS

    

CURRENT ASSETS

    

Cash and cash equivalents

   $ 7,131      $ 5,068   

Accounts receivable, less allowances of $5,300 at December 31, 2015 and $6,663 at

December 31, 2014

     90,576        107,211   

Inventory

     136,890        137,924   

Prepaid expenses and other current assets

     8,783        7,914   
  

 

 

   

 

 

 

TOTAL CURRENT ASSETS

     243,380        258,117   

PROPERTY AND EQUIPMENT, net

     24,877        26,801   

INVESTMENTS

     24,973        28,155   

INTANGIBLE ASSETS, net

     96,593        103,597   

DEFERRED INCOME TAXES

     6,486        —     

OTHER ASSETS

     2,643        4,732   
  

 

 

   

 

 

 

TOTAL ASSETS

   $ 398,952      $ 421,402   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

CURRENT LIABILITIES

    

Current maturity of Credit Agreement Term Loan

   $ 20,000      $ 10,000   

Short term loan

     252        765   

Accounts payable

     27,245        28,694   

Accrued expenses

     40,154        36,961   

Deferred income taxes

     —          2,293   

Income taxes payable

     4,064        5,156   
  

 

 

   

 

 

 

TOTAL CURRENT LIABILITIES

     91,715        83,869   

DEFERRED RENT & OTHER LONG-TERM LIABILITIES

     18,556        20,160   

DEFERRED INCOME TAXES

     8,596        1,485   

REVOLVING CREDIT FACILITY

     65,617        92,655   

CREDIT AGREEMENT TERM LOAN

     15,000        35,000   

STOCKHOLDERS’ EQUITY

    

Preferred stock, $.01 par value, shares authorized: 100 shares of Series A and 2,000,000 shares of Series B; none issued and outstanding

     —          —     

Common stock, $.01 par value, shares authorized: 25,000,000; shares issued and outstanding: 14,030,221 at December 31, 2015 and 13,712,081 at December 31, 2014

     140        137   

Paid-in capital

     165,780        160,315   

Retained earnings

     47,733        37,703   

Accumulated other comprehensive loss

     (14,185     (9,922
  

 

 

   

 

 

 

TOTAL STOCKHOLDERS’ EQUITY

     199,468        188,233   
  

 

 

   

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

   $ 398,952      $ 421,402   
  

 

 

   

 

 

 

 

6


LIFETIME BRANDS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

 

     Year ended
December 31,
 
     2015     2014  

OPERATING ACTIVITIES

    

Net income

   $ 12,278      $ 1,544   

Adjustments to reconcile net income to net cash provided by operating activities:

    

Provision for doubtful accounts

     46        286   

Depreciation and amortization

     14,203        14,200   

Amortization of financing costs

     641        617   

Deferred rent

     848        (722

Deferred income taxes

     (1,440     (3,757

Stock compensation expense

     5,286        4,493   

Undistributed equity (earnings) losses

     (348     6,724   

Intangible asset impairment

     —          3,384   

Loss on early retirement of debt

     —          346   

Contingent consideration fair value adjustment

     650        (4,203

Changes in operating assets and liabilities (excluding the effects of business acquisitions)

    

Accounts receivable

     15,481        (6,209

Inventory

     (308     (6,354

Prepaid expenses, other current assets and other assets

     1,387        (2,063

Accounts payable, accrued expenses and other liabilities

     (397     (950

Income taxes payable

     (1,517     (2,747
  

 

 

   

 

 

 

NET CASH PROVIDED BY OPERATING ACTIVITIES

     46,810        4,589   
  

 

 

   

 

 

 

INVESTING ACTIVITIES

    

Purchases of property and equipment

     (5,166     (6,171

Equity investments

     112        (764

Kitchen Craft acquisition, net of cash acquired

     —          (59,977

Other acquisition, net of cash acquired

     —          (5,389

Net proceeds from sale of property

     26        68   
  

 

 

   

 

 

 

NET CASH USED IN INVESTING ACTIVITIES

     (5,028     (72,233
  

 

 

   

 

 

 

FINANCING ACTIVITIES

    

Proceeds from Revolving Credit Facility

     263,632        278,014   

Repayments of Revolving Credit Facility

     (290,346     (234,067

Repayments of Senior Secured Term Loan

     —          (20,625

Proceeds from Credit Agreement Term Loan

     —          50,000   

Repayments of Credit Agreement Term Loan

     (10,000     (5,000

Proceeds from Short Term Loan

     289        1,645   

Repayments of Short Term Loan

     (802     (880

Payment of financing costs

     (212     (2,283

Cash dividends paid

     (2,150     (2,031

Payment of capital lease obligations

     (50     —     

Payment of contingent consideration

     (391     —     

Proceeds from the exercise of stock options

     843        2,488   

Excess tax benefits from stock options, net

     43        553   
  

 

 

   

 

 

 

NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES

     (39,144     67,814   
  

 

 

   

 

 

 

Effect of foreign exchange on cash

     (575     (49
  

 

 

   

 

 

 

INCREASE IN CASH AND CASH EQUIVALENTS

     2,063        121   
  

 

 

   

 

 

 

Cash and cash equivalents at beginning of year

     5,068        4,947   
  

 

 

   

 

 

 

CASH AND CASH EQUIVALENTS AT END OF YEAR

   $ 7,131      $ 5,068   
  

 

 

   

 

 

 

 

7


LIFETIME BRANDS, INC.

Supplemental Information

(In thousands)

Reconciliation of GAAP to Non-GAAP Operating Results

Consolidated EBITDA:

 

     Three Months Ended
December 31,
    Year Ended
December 31,
 
     2015     2014     2015     2014  
     (in thousands)  

Net income as reported

   $ 11,006      $ 9,261      $ 12,278      $ 1,544   

Subtract out:

        

Undistributed equity (earnings) losses, net

     (517     1,364        (348     6,724   

Add back:

        

Income tax provision

     5,962        5,473        6,627        5,825   

Interest expense

     1,402        1,658        5,746        6,418   

Financing expense

     —          758        154        758   

Depreciation and amortization

     3,500        3,572        14,203        14,200   

Stock compensation expense

     2,972        2,360        5,286        4,493   

Loss on early retirement of debt

     —          27        —          346   

Intangible asset impairment

     —          —          —          3,384   

Contingent consideration

     (876     (4,115     816        (3,450

Restructuring expenses

     437        —          437        125   

Permitted acquisition related expenses

     3        560        (314     2,175   
  

 

 

   

 

 

   

 

 

   

 

 

 

Consolidated EBITDA

   $ 23,889      $ 20,918      $ 44,885      $ 42,542   
  

 

 

   

 

 

   

 

 

   

 

 

 

Consolidated EBITDA is a non-GAAP measure that the Company defines as net income (loss), adjusted to exclude undistributed equity in earnings (losses), income taxes, interest, losses on early retirement of debt, depreciation and amortization, stock compensation expense, intangible asset impairment, certain contingent consideration, certain acquisition related expenses and restructuring expenses, as shown in the tables above.

 

8


LIFETIME BRANDS, INC.

Supplemental Information

(In thousands- except per share data)

 

Reconciliation of GAAP to Non-GAAP Operating Results (continued)

 

Adjusted net income and adjusted diluted income per common share:

 

     Three Months Ended
December 31,
    Year Ended
December 31,
 
     2015     2014     2015     2014  
     (in thousands)  

Net income as reported

   $ 11,006      $ 9,261      $ 12,278      $ 1,544   

Adjustments:

        

Contingent consideration

     (724     (4,203     821        (4,203

Impairment of GS Internacional S/A

     —          764        —          6,012   

Intangible asset impairment

     —          —          —          3,384   

Loss on early retirement of debt

     —          27        —          346   

Acquisition related expenses (recoveries), net

     3        574        (382     2,176   

Financing expenses

     —          758        154        758   

Restructuring expenses

     437        —          437        125   

Deferred tax for foreign currency translation for Grupo Vasconia

     (28     1,063        1,303        1,063   

Income tax effect on adjustments

     114        1,135        (412     (942
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income

   $ 10,808      $ 9,379      $ 14,199      $ 10,263   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted diluted income per common share

   $ 0.75      $ 0.66      $ 1.00      $ 0.73   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income in the three months and year ended December 31, 2015 excludes the fair value adjustment of certain contingent consideration, acquisition related expenses, the recovery of acquisition related expenses for an acquisition not completed, financing expenses and deferred tax expense related to our equity earnings of Vasconia due to recording the tax benefit of cumulative translation losses through other comprehensive income. Adjusted net income in the three months and year ended December 31, 2014 excludes certain acquisition related expenses, the loss on retirement of debt, restructuring expenses, intangible asset impairment, the impairment of the Company’s investment in GS Internacional S/A and deferred tax expense related to our equity earnings of Vasconia due to recording the tax benefit of cumulative translation losses through other comprehensive income.

 

9


LIFETIME BRANDS, INC.

Supplemental Information

(In thousands- except per share data)

 

Reconciliation of GAAP to Non-GAAP Operating Results (continued)

 

Constant Currency:

 

    As Reported
Three Months Ended
December 31,
    Constant Currency (1)
Three Months Ended
December 31,
          Year-Over-Year
Increase (Decrease)
 
Net sales   2015     2014     Increase
(Decrease)
    2015     2014     Increase
(Decrease)
    Currency
Impact
    Excluding
Currency
    Including
Currency
    Currency
Impact
 

U.S. Wholesale

  $ 146,883      $ 145,138      $ 1,745      $ 146,883      $ 144,929      $ 1,954      $ (209     1.3     1.2     (0.1 )% 

International

    31,359        37,261        (5,902     31,359        35,667        (4,308     (1,594     (12.1 )%      (15.8 )%      (3.8 )% 

Retail Direct

    7,638        7,635        3        7,638        7,635        3        —          0.0     0.0     —  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

       

Total net sales

  $ 185,880      $ 190,034      $ (4,154   $ 185,880      $ 188,231      $ (2,351   $ (1,803     (1.2 )%      (2.2 )%      (0.9 )% 
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

       
    As Reported
Year Ended
December 31,
    Constant Currency (1)
Year Ended
December 31,
          Year-Over-Year
Increase (Decrease)
 
Net sales   2015     2014     Increase
(Decrease)
    2015     2014     Increase
(Decrease)
    Currency
Impact
    Excluding
Currency
    Including
Currency
    Currency
Impact
 

U.S. Wholesale

  $ 458,593      $ 441,293      $ 17,300      $ 458,593      $ 440,839      $ 17,754      $ (454     4.0     3.9     (0.1 )% 

International

    108,000        125,230        (17,230     108,000        114,373        (6,373     (10,857     (5.6 )%      (13.8 )%      (8.2 )% 

Retail Direct

    21,077        19,487        1,590        21,077        19,487        1,590        —          8.2     8.2     —  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

       

Total net sales

  $ 587,670      $ 586,010      $ 1,660      $ 587,670      $ 574,699      $ 12,971      $ (11,311     2.3     0.3     (2.0 )% 
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

       

 

(1) “Constant Currency” is determined by applying the 2015 average exchange rates to the prior year local currency net sales amounts, with the difference between the change in “As Reported” net sales and “Constant Currency” net sales, reported in the table as “Currency Impact”. Constant currency net sales growth excludes the impact of currency.

 

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