Lifetime Brands, Inc. Announces New Distribution Center to Build Lifetime’s Infrastructure for the Future
Lifetime Brands (LCUT) announced plans to construct a new 1.027 million-square-foot distribution center in Hagerstown, MD, representing a 46% increase in capacity. This facility will replace the current east coast distribution center in Robbinsville, NJ, and is expected to be fully operational by Q2 2026.
The new facility adds 327,000 square feet of distribution capacity and includes significant financial benefits: rent abatement for the additional space during the first three years of a 15-year lease, plus various state and county incentives including real property tax abatement, employee state withholding tax credit, conditional grants, and income tax credits.
This strategic move aims to optimize infrastructure, enhance operational efficiency through a new warehouse management system, and support the company's long-term growth initiatives while containing future distribution expenses.
Lifetime Brands (LCUT) ha annunciato piani per costruire un nuovo centro di distribuzione di 1.027.000 piedi quadrati a Hagerstown, MD, che rappresenta un aumento del 46% della capacità. Questa struttura sostituirà l'attuale centro di distribuzione della costa est a Robbinsville, NJ, e si prevede che sarà completamente operativa entro il secondo trimestre del 2026.
Il nuovo impianto aggiunge 327.000 piedi quadrati di capacità di distribuzione e include significativi vantaggi finanziari: esenzione dal pagamento dell'affitto per lo spazio aggiuntivo durante i primi tre anni di un contratto di locazione di 15 anni, oltre a vari incentivi statali e locali, tra cui esenzione dalle tasse immobiliari, credito d'imposta sui salari dei dipendenti, sovvenzioni condizionate e crediti d'imposta sul reddito.
Questo movimento strategico mira a ottimizzare le infrastrutture, migliorare l'efficienza operativa attraverso un nuovo sistema di gestione del magazzino e supportare le iniziative di crescita a lungo termine dell'azienda, mantenendo contenute le spese future per la distribuzione.
Lifetime Brands (LCUT) anunció planes para construir un nuevo centro de distribución de 1.027.000 pies cuadrados en Hagerstown, MD, lo que representa un aumento del 46% en la capacidad. Esta instalación reemplazará el actual centro de distribución de la costa este en Robbinsville, NJ, y se espera que esté totalmente operativa para el segundo trimestre de 2026.
El nuevo centro añade 327.000 pies cuadrados de capacidad de distribución e incluye importantes beneficios financieros: exención de alquiler por el espacio adicional durante los primeros tres años de un contrato de arrendamiento de 15 años, además de varios incentivos estatales y del condado, incluyendo exención del impuesto sobre bienes inmuebles, crédito fiscal por retención estatal de empleados, subvenciones condicionales y créditos fiscales sobre la renta.
Este movimiento estratégico tiene como objetivo optimizar la infraestructura, mejorar la eficiencia operativa a través de un nuevo sistema de gestión de almacenes y respaldar las iniciativas de crecimiento a largo plazo de la empresa, al tiempo que se controlan los gastos futuros de distribución.
라이프타임 브랜드 (LCUT)는 메릴랜드주 해거스타운에 1,027,000 평방피트 규모의 새로운 유통 센터를 건설할 계획을 발표했으며, 이는 용량이 46% 증가하는 것입니다. 이 시설은 뉴저지주 로빈스빌에 있는 기존 동부 해안 유통 센터를 대체하며, 2026년 2분기까지 완전히 운영될 것으로 예상됩니다.
새로운 시설은 327,000 평방피트의 유통 용량을 추가하며, 중요한 재정적 혜택을 포함하고 있습니다: 15년 임대 계약의 첫 3년 동안 추가 공간에 대한 임대료 면제 및 부동산 세금 면제, 직원 주 소득세 크레딧, 조건부 보조금 및 소득세 크레딧을 포함한 다양한 주 및 카운티 인센티브.
이 전략적 움직임은 인프라를 최적화하고, 새로운 창고 관리 시스템을 통해 운영 효율성을 향상시키며, 회사의 장기 성장 이니셔티브를 지원하는 동시에 향후 유통 비용을 억제하는 것을 목표로 합니다.
Lifetime Brands (LCUT) a annoncé des projets pour construire un nouveau centre de distribution de 1.027.000 pieds carrés à Hagerstown, MD, représentant une augmentation de 46 % de la capacité. Cette installation remplacera l'actuel centre de distribution de la côte Est à Robbinsville, NJ, et devrait être entièrement opérationnelle d'ici le deuxième trimestre de 2026.
La nouvelle installation ajoute 327.000 pieds carrés de capacité de distribution et inclut des avantages financiers significatifs : exonération de loyer pour l'espace supplémentaire pendant les trois premières années d'un bail de 15 ans, ainsi que divers incitatifs étatiques et locaux, y compris exonération de la taxe sur les biens immobiliers, crédit d'impôt sur les retenues d'impôts des employés, subventions conditionnelles et crédits d'impôt sur le revenu.
Ce mouvement stratégique vise à optimiser l'infrastructure, à améliorer l'efficacité opérationnelle grâce à un nouveau système de gestion d'entrepôt et à soutenir les initiatives de croissance à long terme de l'entreprise tout en maîtrisant les coûts de distribution futurs.
Lifetime Brands (LCUT) kündigte Pläne an, ein neues Verteilungszentrum mit 1.027.000 Quadratfuß in Hagerstown, MD, zu errichten, was einer Kapazitätssteigerung von 46% entspricht. Diese Einrichtung wird das bestehende Verteilungszentrum an der Ostküste in Robbinsville, NJ, ersetzen und soll bis zum zweiten Quartal 2026 vollständig betriebsbereit sein.
Die neue Einrichtung fügt 327.000 Quadratfuß an Verteilungskapazität hinzu und umfasst erhebliche finanzielle Vorteile: Mietbefreiung für den zusätzlichen Raum während der ersten drei Jahre eines 15-Jahres-Mietvertrags sowie verschiedene staatliche und kommunale Anreize, einschließlich der Befreiung von Grundsteuern, des staatlichen Steuerkredits für Mitarbeiter, bedingter Zuschüsse und Einkommenssteuererleichterungen.
Dieser strategische Schritt zielt darauf ab, die Infrastruktur zu optimieren, die Betriebseffizienz durch ein neues Warenmanagementsystem zu steigern und die langfristigen Wachstumsinitiativen des Unternehmens zu unterstützen, während zukünftige Vertriebskosten kontrolliert werden.
- 46% increase in distribution capacity with 327,000 additional square feet
- Rent abatement for additional space in first 3 years of 15-year lease
- Multiple tax abatements and incentives from Maryland state and Washington County
- Expected cost containment through operational efficiencies
- Significant one-time relocation expenses and capital expenditures required
- Full benefits won't be realized until 2026
Insights
This strategic infrastructure expansion marks a pivotal transformation for Lifetime Brands, with several key implications for investors:
The new 1.027 million square foot Hagerstown facility delivers three important advantages:
- A 46% capacity expansion that positions LCUT for both organic growth and potential acquisitions
- Significant cost containment through Maryland's comprehensive incentive package, including property tax abatements, income tax credits and conditional grants
- A 15-year lease with three years of rent abatement on the additional space, providing substantial near-term cash flow benefits
The Hagerstown location offers strategic benefits beyond mere size. Its proximity to major East Coast transportation corridors could reduce freight costs and delivery times. The implementation of a new warehouse management system signals a technological leap that should enhance inventory management and order fulfillment efficiency.
The timing of this move is particularly astute. With e-commerce reshaping retail logistics and consumer expectations for faster delivery growing, this modernized facility positions LCUT to better serve evolving market demands. The choice of Hagerstown - situated between major metropolitan areas - suggests careful consideration of future distribution patterns.
While the initial capital expenditure and relocation costs warrant attention, the negotiated incentives and operational efficiencies should drive long-term cost advantages. The facility's planned 2026 operational date provides adequate time for a measured transition, minimizing disruption risks.
~ Optimizes Infrastructure for U.S. Business, Increasing Capacity by
~ Relocating East Coast Distribution Center to Built to Suit Facility in Hagerstown, MD ~
~ Expected to be Fully Operational in 2026 ~
GARDEN CITY, N.Y., Jan. 29, 2025 (GLOBE NEWSWIRE) -- Lifetime Brands, Inc. (NasdaqGS: LCUT) (“Lifetime” or the “Company”), a leading global designer, developer and marketer of a broad range of branded consumer products used in the home, today announced its plan to construct a new distribution center that will serve as a cornerstone for Lifetime’s infrastructure for the future, beginning with the signed lease for a new built to suit 1.027 million-square foot distribution center in Hagerstown, MD (the “Hagerstown Facility”). The expanded capacity of the Hagerstown Facility will effectively operate as the Company’s primary U.S. east coast distribution center, a relocation from the current distribution center in Robbinsville, NJ. The Company expects construction of the Hagerstown Facility to be complete by the second quarter of 2026.
In developing plans to operate a modernized Lifetime with speed, precision and efficiency, this phase establishes the foundation to support the Company’s long-term growth plan including organic and inorganic growth opportunities. In addition, the new facility is expected to drive operational efficiencies through the integration of a new warehouse management system to deliver best in class service and efficiency.
Key advantages of the Hagerstown distribution center include the following:
- Increases the Company’s current distribution capacity by 327,000 square feet;
- Abates rent for the additional 327,000 square feet for the first three years of the fifteen year lease term;
- Abatements and incentives from the State of Maryland and Washington County, Maryland. These include a real property tax abatement in Washington County, employee state withholding tax credit, conditional grants and income tax credits; and
- Expected to significantly contain Lifetime’s future distribution expenses
Rob Kay, Lifetime’s Chief Executive Officer, stated, “We are excited to take this first step towards realizing Lifetime’s infrastructure for the future steered by a relocation to our new Hagerstown distribution center in Maryland, and leading to execution of the initial phase of our multi-year growth initiatives. Lifetime’s distribution centers are a core asset of our operations, and this new facility yields an expanded capacity of 327,000 square feet in a centralized location to maximize time and cost efficiencies of logistics and freight. The primary objective of this project is to optimize our current infrastructure while preserving our historical operational excellence to meet the demand volume of the anticipated future growth of our U.S business.
As we direct Lifetime’s modernization initiatives, we have thoughtfully considered the speed and efficiency of our operations to meet the current dynamic marketplace. This strategic move enables us to remain competitive with the long-standing value proposition we offer to retail partners and the end market customers of our significant portfolio of home consumer product brands across the U.S. This initiative recognizes the changing nature of the current end market, our customers’ expectations for adaptability and addresses the preferred consumer and retailer shopping channels. Further, our relocation to Maryland is a preemptive measure in cost discipline to contain our future expenses. Furthermore, we’ve successfully negotiated state and county tax abatements and incentives that will significantly mitigate the financial impact of one-time relocation expenses and capital expenditures to operate the new facility. We are optimistic for this next stage of achieving the Company’s growth objectives, and we are operationally prepared through this first action item, optimizing Lifetime’s infrastructure for the future,” concluded Mr. Kay.
Forward-Looking Statements
In this press release, the use of the words “advance,” “believe,” “continue,” “could,” “deliver,” “drive,” “enable,” “expect,” “gain,” “goal,” “grow,” “intend,” “maintain,” “manage,” “may,” “outlook,” “plan,” “positioned,” “project,” “projected,” “should,” “take,” “target,” “unlock,” “will,” “would”, or similar expressions is intended to identify forward-looking statements. Such statements include all statements regarding the growth of the Company, the Company’s financial guidance, the Company’s ability to realize the benefits of the Lease, the Company’s ability to navigate the current environment and advance the Company’s strategy, the Company’s commitment to increasing investments in future growth initiatives, the Company’s initiatives to create value, the Company’s efforts to mitigate geopolitical factors and tariffs, the Company’s current and projected financial and operating performance, results, and profitability and all guidance related thereto, including forecasted exchange rates and effective tax rates, as well as the Company’s continued growth and success, future plans and intentions regarding the Company and its consolidated subsidiaries. Such statements represent the Company’s current judgments, estimates, and assumptions about possible future events. The Company believes these judgments, estimates, and assumptions are reasonable, but these statements are not guarantees of any events or financial or operational 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 credit agreements; the Company’s ability to maintain adequate liquidity and financing sources and an appropriate level of debt, as well as to deleverage its balance sheet; the possibility of impairments to the Company’s goodwill; the possibility of impairments to the Company’s intangible assets; the highly seasonal nature of the Company’s business; the Company’s ability to drive future growth and profitability from its European operations; changes in U.S. or foreign trade or tax law and policy; changes in general economic conditions that could impact the Company’s customers and affect customer purchasing practices or consumer spending; customer ordering behavior; the performance of the Company’s newer products; expenses and other challenges relating to the integration of any future acquisitions; changes in demand for the Company’s products; changes in the Company’s management team; the significant influence of the Company’s largest stockholder; fluctuations in foreign exchange rates; changes in U.S. trade policy or the trade policies of nations in which the Company or the Company’s suppliers do business; shortages of and price volatility for certain commodities; global health epidemic; social unrest, including related protests and disturbances; the emergence, continuation and consequences of geopolitical conditions, including political instability in the U.S. and abroad, unrest and sanctions, war, conflict, including the ongoing conflicts between Russia and the Ukraine, conflicts in the Middle East, and increasing tensions between China and Taiwan; macro-economic challenges, including labor disputes, inflationary impacts and disruptions to the global supply chain; increase in supply chain costs; the imposition of tariffs and other trade policies and/or economic sanctions implemented by the U.S. and other governments; the Company’s ability to successfully integrate acquired businesses; the Company’s expectations regarding customer purchasing practices and the future level of demand for the Company’s products; the Company’s ability to execute on the goals and strategies set forth in the Company’s five-year plan; and 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 ability to maintain an appropriate level of debt. The Company undertakes no obligation to update these forward-looking statements other than as required by law.
About Lifetime Brands, Inc.
Lifetime Brands is a leading global designer, developer and marketer of a broad range of branded consumer products used in the home. The Company markets its products under well-known kitchenware brands, including Farberware®, KitchenAid®, Sabatier®, Amco Houseworks®, Chef’n® Chicago™ Metallic, Copco®, Fred® & Friends, Houdini™, KitchenCraft®, Kamenstein®, La Cafetière®, MasterClass®, Misto®, Swing-A-Way®, Taylor® Kitchen, Rabbit®, and Dolly® ; respected tableware and giftware brands, including Mikasa®, Pfaltzgraff®, Fitz and Floyd®, Empire Silver™, Gorham®, International® Silver, Towle® Silversmiths, Wallace®, Wilton Armetale®, V&A®, Royal Botanic Gardens Kew®, Year & Day®, Dolly®, Royal Leerdam®, and ONIS®; and valued home solutions brands, including BUILT NY®, S’well®, Taylor® Bath, Taylor® Kitchen, Taylor® Weather, Planet Box®, and Dolly®. 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.
Laurence Winoker, Chief Financial Officer
516-203-3590
investor.relations@lifetimebrands.com
or
MZ North America
Shannon Devine / Rory Rumore
Main: 203-741-8811
LCUT@mzgroup.us
FAQ
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