Lifetime Brands (LCUT) 10-Q 6 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 31, 2015
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Trading Symbol	LCUT
Entity Registrant Name	LIFETIME BRANDS, INC
Entity Central Index Key	874,396
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		14,025,721

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
CURRENT ASSETS
Cash and cash equivalents	$ 6,279	$ 5,068
Accounts receivable, less allowances of $5,706 at September 30, 2015 and $6,663 at December 31, 2014	109,184	107,211
Inventory (Note A)	173,612	137,924
Prepaid expenses and other current assets	9,893	7,914
TOTAL CURRENT ASSETS	298,968	258,117
PROPERTY AND EQUIPMENT, net	25,501	26,801
INVESTMENTS (Note C)	24,360	28,155
INTANGIBLE ASSETS, net (Note D)	98,343	103,597
OTHER ASSETS	2,792	4,732
TOTAL ASSETS	449,964	421,402
CURRENT LIABILITIES
Current maturity of Credit Agreement Term Loan (Note E)	20,000	10,000
Short term loan (Note E)		765
Accounts payable	35,663	28,694
Accrued expenses	45,922	36,961
Deferred income taxes (Note I)	2,065	2,293
Income taxes payable (Note I)		5,156
TOTAL CURRENT LIABILITIES	103,650	83,869
DEFERRED RENT & OTHER LONG-TERM LIABILITIES	20,087	20,160
DEFERRED INCOME TAXES (Note I)	1,951	1,485
REVOLVING CREDIT FACILITY (Note E)	118,798	92,655
CREDIT AGREEMENT TERM LOAN (Note E)	$ 17,500	$ 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: 14,025,721 at September 30, 2015 and 13,712,081 at December 31, 2014	$ 140	$ 137
Paid-in capital	165,126	160,315
Retained earnings	37,326	37,703
Accumulated other comprehensive loss (Note L)	(14,614)	(9,922)
TOTAL STOCKHOLDERS' EQUITY	187,978	188,233
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 449,964	$ 421,402

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Accounts receivable, allowances	$ 5,706	$ 6,663
Preferred stock, par value	$ 0.01	$ 0.01
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	14,025,721	13,712,081
Common stock, shares outstanding	14,025,721	13,712,081
Preferred stock Series A
Preferred stock, shares authorized	100	100
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Preferred stock Series B
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Net sales	$ 163,198	$ 162,244	$ 401,790	$ 395,976
Cost of sales	106,246	104,321	256,419	252,869
Gross margin	56,952	57,923	145,371	143,107
Distribution expenses	13,348	13,262	39,378	38,068
Selling, general and administrative expenses	33,842	32,849	99,389	98,456
Intangible asset impairment (Note D)		3,384		3,384
Restructuring expenses				125
Income from operations	9,762	8,428	6,604	3,074
Interest expense (Note E)	(1,454)	(1,698)	(4,344)	(4,760)
Financing expense			(154)
Loss on early retirement of debt				(319)
Income (loss) before income taxes and equity in earnings	8,308	6,730	2,106	(2,005)
Income tax provision (Note I)	(2,745)	(3,123)	(665)	(352)
Equity in losses, net of taxes (Note C)	(459)	(5,193)	(169)	(5,360)
NET INCOME (LOSS)	$ 5,104	$ (1,586)	$ 1,272	$ (7,717)
BASIC INCOME (LOSS) PER COMMON SHARE (NOTE H)	$ 0.37	$ (0.12)	$ 0.09	$ (0.57)
DILUTED INCOME (LOSS) PER COMMON SHARE (NOTE H)	0.36	(0.12)	0.09	(0.57)
Cash dividends declared per common share	$ 0.0425	$ 0.0375	$ 0.1175	$ 0.1125

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Net income (loss)	$ 5,104	$ (1,586)	$ 1,272	$ (7,717)
Other comprehensive income (loss), net of taxes:
Translation adjustment	(3,174)	(3,309)	(4,681)	(1,577)
Derivative fair value adjustment	(34)	73	(71)	39
Effect of retirement benefit obligations	20	7	60	21
Other comprehensive loss, net of taxes	(3,188)	(3,229)	(4,692)	(1,517)
Comprehensive income (loss)	$ 1,916	$ (4,815)	$ (3,420)	$ (9,234)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
OPERATING ACTIVITIES
Net income (loss)	$ 1,272	$ (7,717)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Provision for doubtful accounts	229	133
Depreciation and amortization	10,703	10,628
Amortization of financing costs	477	465
Deferred rent	511	(623)
Deferred income taxes	699	(212)
Stock compensation expense	2,314	2,133
Undistributed equity in losses, net	169	5,360
Intangible asset impairment		3,384
Loss on early retirement of debt		319
Changes in operating assets and liabilities (excluding the effects of business acquisitions)
Accounts receivable	(2,805)	587
Inventory	(36,422)	(37,479)
Prepaid expenses, other current assets and other assets	(642)	(1,889)
Accounts payable, accrued expenses and other liabilities	17,886	10,985
Income taxes payable	(5,822)	(7,535)
NET CASH USED IN OPERATING ACTIVITIES	(11,431)	(21,461)
INVESTING ACTIVITIES
Purchases of property and equipment	(4,190)	(4,340)
Kitchen Craft acquisition, net of cash acquired		(59,977)
Other acquisitions, net of cash acquired		(5,280)
NET CASH USED IN INVESTING ACTIVITIES	(4,190)	(69,597)
FINANCING ACTIVITIES
Proceeds from Revolving Credit Facility	213,625	206,193
Repayments of Revolving Credit Facility	(187,267)	(142,114)
Repayments of Senior Secured Term Loan		(20,625)
Proceeds from Credit Agreement Term Loan		50,000
Repayment of Credit Agreement Term Loan	(7,500)	(2,500)
Proceeds from Short Term Loan	37	1,168
Payments on Short Term Loan	(803)	(217)
Payment of financing costs		(1,375)
Proceeds from exercise of stock options	843	2,192
Cash dividends paid (Note K)	(1,557)	(1,517)
NET CASH PROVIDED BY FINANCING ACTIVITIES	17,378	91,205
Effect of foreign exchange on cash	(546)	(117)
INCREASE IN CASH AND CASH EQUIVALENTS	1,211	30
Cash and cash equivalents at beginning of period	5,068	4,947
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 6,279	$ 4,977

BASIS OF PRESENTATION AND SUMMA

BASIS OF PRESENTATION AND SUMMARY ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2015
BASIS OF PRESENTATION AND SUMMARY ACCOUNTING POLICIES	NOTE A — BASIS OF PRESENTATION AND SUMMARY ACCOUNTING POLICIES Organization and business Lifetime Brands, Inc. (the “Company”) designs, sources and sells branded kitchenware, tableware and other products used in the home and markets its products under a number of brand names and trademarks, which are either owned or licensed by the Company, or through retailers’ private labels. The Company markets and sells its products principally on a wholesale basis to retailers. The Company also markets and sells a limited selection of its products directly to consumers through its Pfaltzgraff ® ® ® ® ® Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments, which consist only of normal recurring accruals, considered necessary for a fair presentation have been included. These condensed consolidated financial statements should be read in conjunction with the condensed consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014. Operating results for the three and nine month periods ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. The Company’s business and working capital needs are highly seasonal, with a majority of sales occurring in the third and fourth quarters. In 2014 and 2013, net sales for the third and fourth quarters accounted for 60% and 61% of total annual net sales, respectively. In anticipation of the pre-holiday shipping season, inventory levels increase primarily in the June through October time period. Revenue recognition The Company sells products wholesale, to retailers and distributors, and retail, directly to the consumer. Wholesale sales and retail sales are recognized when title passes to the customer, which is primarily at the shipping point for wholesale sales and upon delivery to the customer for retail sales. Shipping and handling fees that are billed to customers in sales transactions are included in net sales and amounted to $313,000 and $219,000 for the three months ended September 30, 2015 and 2014, respectively, and $1.0 million and $0.9 million for the nine months ended September 30, 2015 and 2014, respectively. Net sales exclude taxes that are collected from customers and remitted to the taxing authorities. The Company offers various sales incentives and promotional programs to its customers from time to time in the normal course of business. These incentives and promotions typically include arrangements such as cooperative advertising, buydowns, volume rebates and discounts. These arrangements and an estimate of sales returns are reflected as reductions in net sales in the Company’s condensed consolidated statements of operations. Cost of sales Cost of sales consists primarily of costs associated with the production and procurement of product, inbound freight costs, purchasing costs, royalties and other product procurement related charges. Distribution expenses Distribution expenses consist primarily of warehousing expenses and freight-out expenses. Inventory Inventory consists principally of finished goods sourced from third-party suppliers. Inventory also includes finished goods, work in process and raw materials related to the Company’s manufacture of sterling silver products. Inventory is priced using the lower of cost (first-in, first-out basis) or market method. The Company estimates the selling price of its inventory on a product by product basis based on the current selling environment. If the estimated selling price is lower than the inventory’s cost, the Company reduces the value of the inventory to its net realizable value. The components of inventory are as follows: September 30, December 31, (in thousands) Finished goods $ 170,215 $ 134,564 Work in process 1,761 1,887 Raw materials 1,636 1,473 Total $ 173,612 $ 137,924 Fair value of financial instruments The Company determined the carrying amounts of cash and cash equivalents, accounts receivable and accounts payable are reasonable estimates of their fair values because of their short-term nature. The Company determined that the carrying amounts of borrowings outstanding under its revolving credit facility, term loan and short term loan approximate fair value since such borrowings bear interest at variable market rates. Derivatives The Company accounts for derivative instruments in accordance with Accounting Standard Codification (“ASC”) Topic No. 815, Derivatives and Hedging. ASC Topic No. 815 requires that all derivative instruments be recognized on the balance sheet at fair value as either an asset or liability. Changes in the fair value of derivatives that qualify as hedges and have been designated as part of a hedging relationship for accounting purposes have no net impact on earnings to the extent the derivative is considered highly effective in achieving offsetting changes in fair value or cash flows attributable to the risk being hedged, until the hedged item is recognized in earnings. If a derivative which is designated as part of a hedging relationship is considered ineffective in achieving offsetting changes in fair value or cash flows attributable to the risk being hedged, the changes in fair value are recorded in operations. For derivatives that do not qualify or are not designated as hedging instruments for accounting purposes, changes in fair value are recorded in operations. Employee healthcare The Company self-insures certain portions of its health insurance plan. The Company maintains an accrual for unpaid claims and estimated claims incurred but not yet reported (“IBNR”). Although management believes that it uses the best information available to estimate claims IBNR, actual claims may vary significantly from estimated claims. New Accounting Pronouncements In September 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-16, Simplifying the Accounting for Measurement-Period Adjustments In July, 2015, the FASB issued ASU 2015-11, Inventory: Simplifying the Measurement of Inventory In April 2015, the FASB issued ASU 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement In April 2015, FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers

ACQUISITIONS

ACQUISITIONS	9 Months Ended
	Sep. 30, 2015
ACQUISITIONS	NOTE B — ACQUISITIONS Kitchen Craft On January 15, 2014, the Company acquired 100% of the share capital of Thomas Plant (Birmingham) Limited (“Kitchen Craft”) for cash in the amount of £37.4 million ($61.5 million) and 581,432 shares of common stock of the Company with a market value of £5.5 million ($9.0 million), at the date of closing. The purchase price also included contingent cash consideration of up to £5.5 million ($9.0 million). Kitchen Craft is a leading supplier of kitchenware products and accessories in the United Kingdom. The assets, liabilities and operating results of Kitchen Craft are reflected in the Company’s condensed consolidated financial statements in accordance with ASC Topic No. 805, Business Combinations The purchase price has been determined to be as follows (in thousands): Cash $ 61,302 Share consideration issued (1) 8,382 Value of contingent consideration (2) 2,488 Working capital adjustment (3) 374 Total purchase price $ 72,546 (1) Share consideration issued is valued at the closing market price discounted to account for lack of marketability related to the lock up period as described in the share purchase agreement. (2) The value of contingent consideration represents the present value of the estimated payments related to the attainment of certain financial targets for the years 2014 through 2016, determined as of the date of the acquisition. The maximum undiscounted contingent consideration to be paid under the agreement is £5.5 million ($9.0 million). (3) A working capital adjustment was made in May 2014 as provided for in the share purchase agreement. In April 2015, the Company entered into a Deed of Variation and Settlement with the sellers of Kitchen Craft to amend the calculation and financial targets of the contingent consideration included in the share purchase agreement. The maximum undiscounted contingent consideration to be paid remains unchanged at £5.5 million. As a result of the amendment, in April 2015, a charge of £1.0 (approximately $1.5 million) was recorded in selling, general and administration expenses in the nine months ended September 30, 2015. As of September 30, 2015, the fair value of the amended contingent consideration is £3.2 million (approximately $4.8 million). Kitchen Craft is the sponsor of a defined benefit pension plan (the “Plan”) for which service costs accrual ceased prior to the acquisition. Pursuant to the share purchase agreement, the Company and the sellers agreed to take action to settle the Plan’s obligation through the purchase of a group annuity contract (which has been completed), issue individual annuity contracts and terminate the Plan. There was no impact, nor is there any expected future impact, to the Company’s annual statement of operations in connection with the planned settlement of the Plan, which is expected to occur in 2015. The Company’s results of operations for the three and nine months ended September 30, 2014 include the operations of Kitchen Craft for the period from January 15, 2014 to September 30, 2014. Kitchen Craft’s results of operations for the period from January 1, 2014 to January 14, 2014 were immaterial. For the nine months ended September 30, 2014, the Company’s results from operations reflect a $0.9 million charge in cost of sales for the increase in fair value of Kitchen Craft’s acquired inventory and a $0.9 million charge of related acquisition costs. Had these charges not been incurred, the reported net loss would have been $6.6 million for the nine months ended September 30, 2014 (basic and diluted loss per common share of $0.49).

INVESTMENTS

INVESTMENTS	9 Months Ended
	Sep. 30, 2015
INVESTMENTS	NOTE C — INVESTMENTS The Company owns approximately a 30% interest in Grupo Vasconia S.A.B. (“Vasconia”), an integrated manufacturer of aluminum products and one of Mexico’s largest housewares companies. Shares of Vasconia’s capital stock are traded on the Bolsa Mexicana de Valores, the Mexican Stock Exchange. The Quotation Key is VASCONI. The Company accounts for its investment in Vasconia using the equity method of accounting and records its proportionate share of Vasconia’s net income in the Company’s statement of operations. Accordingly, the Company has recorded its proportionate share of Vasconia’s net income (reduced for amortization expense related to the customer relationships acquired) for the three and nine month periods ended September 30, 2015 and 2014 in the accompanying condensed consolidated statements of operations. The value of the Company’s investment balance has been translated from Mexican Pesos (“MXN”) to U.S. Dollars (“USD”) using the spot rates of MXN 17.01 and MXN 14.74 at September 30, 2015 and December 31, 2014, respectively. The Company’s proportionate share of Vasconia’s net income has been translated from MXN to USD using the average exchange rates of MXN 16.41 and MXN 13.11 during the three months ended September 30, 2015 and 2014, respectively, and MXN 14.94 to 16.41 and MXN 13.05 to 13.11 during the nine months ended September 30, 2015 and 2014, respectively. The effect of the translation of the Company’s investment resulted in a decrease to the investment of $5.1 million and $1.3 million during the nine months ended September 30, 2015 and 2014, respectively (also see Note K). These translation effects are recorded in accumulated other comprehensive income (loss). Included in prepaid expenses and other current assets at December 31, 2014 are amounts due from Vasconia of $33,000. A summarized statement of income information for Vasconia in USD and MXN is as follows: Three Months Ended September 30, 2015 2014 (in thousands) USD MXN USD MXN Net sales $ 42,759 $ 701,631 $ 45,635 $ 598,197 Gross profit 7,755 127,258 8,173 107,134 Income from operations 2,134 35,012 1,720 22,547 Net income 1,210 19,859 1,173 15,381 Nine Months Ended September 30, 2015 2014 (in thousands) USD MXN USD MXN Net Sales $ 139,748 $ 2,169,538 $ 137,348 $ 1,799,920 Gross Profit 27,838 431,333 24,989 327,454 Income from operations 8,742 135,210 5,697 74,628 Net Income 4,774 73,981 2,649 34,575 The Company recorded equity in earnings (losses) of Vasconia, net of taxes, of $(0.5) million and $0.3 million for the three months ended September 30, 2015 and 2014, respectively and $(0.2) million and $0.6 million for the nine months ended September 30, 2015 and 2014, respectively. Equity in losses for the three and nine months ended September 30, 2015 includes deferred tax expense of $0.8 million and $1.3 million, respectively, due to the requirement to record tax benefits for foreign currency translation losses through other comprehensive income (loss), with a corresponding adjustment to deferred tax liabilities. As of September 30, 2015 and December 31, 2014, the fair value (based upon Vasconia’s quoted stock price) of the Company’s investment in Vasconia was $31.5 million and $30.8 million, respectively. The carrying value of the Company’s investment in Vasconia was $24.0 million and $27.8 million as of September 30, 2015 and December 31, 2014, respectively. The Company has a 40% equity interest in GS Internacional S/A (“GSI”), a leading wholesale distributor of branded housewares products in Brazil, which the Company acquired in December 2011. As of September 30, 2015 and December 31, 2014, the carrying value of the Company’s investment in GSI was $0 and therefore the Company has not recorded its share of equity in losses in the three and nine months ended September 30, 2015. The Company will continue to monitor the operating results of GSI and will record equity in earnings when the equity in earnings exceeds the Company’s previously unrecognized losses. The Company recorded equity in losses of GSI of $5.5 million and $5.9 million, net of taxes, for the three and nine months ended September 30, 2014, respectively. The equity in losses, net of tax, for the three and nine months ended September 30, 2014, include a $5.2 million impairment charge recorded by the Company for the other-than-temporary impairment of its interest in GSI. The Company evaluated the disclosure requirements of ASC Topic No. 860, Transfers and Servicing

INTANGIBLE ASSETS

INTANGIBLE ASSETS	9 Months Ended
	Sep. 30, 2015
INTANGIBLE ASSETS	NOTE D — INTANGIBLE ASSETS Intangible assets consist of the following (in thousands): September 30, 2015 December 31, 2014 Gross Accumulated Net Gross Accumulated Net Goodwill $ 18,101 $ — $ 18,101 $ 18,101 $ — $ 18,101 Indefinite-lived intangible assets: Trade names 7,616 — 7,616 7,616 — 7,616 Finite-lived intangible assets: Licenses 15,847 (8,349 ) 7,498 15,847 (8,007 ) 7,840 Trade names 29,724 (6,245 ) 23,479 29,768 (4,568 ) 25,200 Customer relationships 50,823 (9,793 ) 41,030 50,823 (6,754 ) 44,069 Other 1,202 (583 ) 619 1,202 (431 ) 771 Total $ 123,313 $ (24,970 ) $ 98,343 $ 123,357 $ (19,760 ) $ 103,597 The Company performed its annual impairment test for its indefinite-lived trade names as of October 1, 2015. The Company elected to first perform a qualitative assessment to determine if it is more likely than not that the fair value of the Company’s indefinite-lived trade names are less than the carrying values. The Company considered events and circumstances that could affect the significant inputs used to determine the fair value of the indefinite-lived trade names. Based on the qualitative assessment the Company determined it is not more likely than not that the fair values of the Company’s indefinite-lived trade names are less than the carrying values. The October 1, 2014 impairment test involved a quantitative assessment of the fair market values of the Company’s indefinite-lived trade names based on Level 3 unobservable inputs, using a relief from royalty approach, assuming a discount rate of 14.0% to 15.5% and an average long term growth rate of 2.5% to 3%. In the three and nine month periods ended September 30, 2014, the Company recorded an impairment charge of $3.4 million, related to the Company’s home décor trade names. As part of this analysis of indefinite-lived trade names it was determined that certain of the Company’s trade names, previously estimated to contribute to cash flows indefinitely, have definite lives. Accordingly, these trade names were reclassified from indefinite-lived or unamortizable intangible assets to finite lived or amortizable intangible assets as of October 1, 2014. The remaining useful lives of these trade names is 10 to 15 years.

DEBT

DEBT	9 Months Ended
	Sep. 30, 2015
DEBT	NOTE E — DEBT Credit Agreement The Company’s Credit Agreement, which expires in January 2019, provides for, among other things, a Revolving Credit Facility commitment totaling $175.0 million ($40.0 million of which is available for multi-currency borrowings) and a Term Loan facility of $50.0 million. At September 30, 2015 and December 31, 2014, borrowings outstanding under the Revolving Credit Facility were $118.8 million and $92.7 million, respectively, and open letters of credit were $0.9 million and $2.3 million, respectively. At September 30, 2015, availability under the Revolving Credit Facility was approximately $55.3 million. The borrowing capacity under the Revolving Credit Facility depends, in part, on eligible levels of accounts receivable and inventory that fluctuate regularly and certain trademark values based upon periodic appraisals, and may be lower in the first and second quarters when the Company’s inventory level is lower due to seasonality. The Company’s payment obligations under the Revolving Credit Facility are unconditionally guaranteed by each of its existing U.S. subsidiaries and will be unconditionally guaranteed by each of its future U.S. subsidiaries. Certain payment obligations under the Revolving Credit Facility are also direct obligations of its foreign subsidiary borrowers designated as such under the Credit Agreement and, subject to limitations on such guaranties, are guaranteed by the foreign subsidiary borrowers, as well as by the Company. The obligations of the Company under the Revolving Credit Facility and any hedging arrangements and cash management services and the guarantees by its domestic subsidiaries in respect of those obligations are secured by substantially all of the assets and stock (but in the case of foreign subsidiaries, limited to 65% of the capital stock in first-tier foreign subsidiaries and not including the stock of subsidiaries of such first-tier foreign subsidiaries) owned by the Company and the U.S. subsidiary guarantors, subject to certain exceptions. Such security interests consist of a first-priority lien, subject to certain permitted liens, with respect to the assets of the Company and its domestic subsidiaries pledged as collateral in favor of lenders under the Revolving Credit Facility. As of September 30, 2015 and December 31, 2014, $37.5 million and $45.0 million, respectively, was outstanding under the Term Loan. In May 2015 the credit agreement was amended to provide for the prepayment of the Term Loan in 2016, in the amount of the greater of $10.0 million and an amount equal to 50% of the Company’s excess cash flow for the 2015 fiscal year. Interest rates on outstanding borrowings at September 30, 2015 ranged from 2.125% to 4.6875%. In addition, the Company pays a commitment fee of 0.375% on the unused portion of the Revolving Credit Facility. The Credit Agreement provides for customary restrictions and events of default. Restrictions include limitations on additional indebtedness, acquisitions, investments and payment of dividends, among other things. Further, the Credit Agreement provides that at any time any Term Loan is outstanding or at any time no Term Loan is outstanding and availability under the Revolving Credit Facility is less than $17.5 million and continuing until availability of at least $20.0 million is maintained for three consecutive months, the Company is required to maintain a minimum fixed charge coverage ratio of 1.20 to 1.00 for each of four consecutive fiscal quarter periods. The Credit Agreement also provides that when the Term Loan is outstanding, the Company is required to maintain a Senior Leverage Ratio within defined parameters not to exceed 4.50 to 1.00 for each remaining fiscal quarter ending during 2015; 4.00 to 1.00 for each fiscal quarter ending March 31, June 30 and September 30, 2016; and 3.75 to 1.00 for each fiscal quarter ending thereafter. For any fiscal quarter of the Company ending on September 30th, the maximum Senior Leverage Ratio is increased by an additional 0.25:1.00 in excess of the applicable level otherwise provided. Pursuant to the Credit Agreement, as of September 30, 2015, the maximum additional permitted indebtedness other than certain subordinated indebtedness was $41.9 million. The Company was in compliance with the financial covenants of the Credit Agreement at September 30, 2015. Other Credit Agreements A subsidiary of the Company has a credit facility (“HSBC Facility” or “Short term loan”) with HSBC Bank (China) Company Limited, Shanghai Branch (“HSBC”) for up to RMB 18.0 million ($2.9 million). The HSBC Facility is subject to annual renewal and may be used to fund general working capital needs of the Company’s subsidiary which is a trading company in the People’s Republic of China. Borrowings under the HSBC Facility are guaranteed by the Company and are granted at the sole discretion of HSBC. At September 30, 2015, there was no outstanding balance under the HSBC Facility.

DERIVATIVES

DERIVATIVES	9 Months Ended
	Sep. 30, 2015
DERIVATIVES	NOTE F — DERIVATIVES The Company is a party to interest rate swap agreements with an aggregate notional amount of $21.4 million to manage interest rate exposure in connection with its variable interest rate borrowings. The hedge periods of these agreements commenced in March 2013 and expire in June 2018 and the notional amounts amortize over these periods. The interest rate swap agreements were designated as cash flow hedges under ASC Topic No. 815. The effective portion of the fair value gain or loss on these agreements is recorded as a component of accumulated other comprehensive income (loss). The Company has also entered into certain foreign exchange contracts, to primarily offset the earnings impact related to fluctuations in foreign currency exchange rates associated with inventory purchases denominated in foreign currencies. The aggregate gross notional amount of foreign exchange contracts at September 30, 2015 was $12.1 million. These foreign exchange contracts have not been designated as hedges as required in order to apply hedge accounting. The changes in the fair value of these contracts are recorded in earnings immediately. The fair values of the Company’s derivative financial instruments included in the condensed consolidated balance sheets are presented as follows (in thousands): Liabilities Derivatives designated as hedging instruments Balance Sheet Location September 30, December 31, Interest rate swaps Deferred rent & other $ 148 $ 32 Assets Derivatives not designated as hedging instruments Balance Sheet Location September 30, December 31, Foreign exchange contracts Prepaid expenses and $ 278 $ — The fair value of the derivatives have been obtained from the counterparties to the agreements and were based on Level 2 observable inputs using proprietary models and estimates about relevant future market conditions. The amounts of the gains and losses related to the Company’s derivative financial instruments designated as hedging instruments are presented as follows (in thousands): Amount of Gain or (Loss) Recognized in OCI on Derivatives Derivatives designated as hedging Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Interest rate swaps $ (34 ) $ 73 $ (71 ) $ 39 No amounts recorded in accumulated other comprehensive income (loss) are expected to be reclassified to interest expense in the next twelve months. The amounts of the gains and losses related to the Company’s derivative financial instruments not designated as hedging instruments are presented as follows (in thousands): Derivatives not designated as hedging instruments Location of Gain or (Loss) Amount of Gain or (Loss) Recognized in Earnings on Derivatives Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Foreign exchange contracts Selling, general and $ 161 $ 500 $ 283 $ 76

STOCK COMPENSATION

STOCK COMPENSATION	9 Months Ended
	Sep. 30, 2015
STOCK COMPENSATION	NOTE G — STOCK COMPENSATION On June 10, 2015, the stockholders of the Company approved the Company’s Amended and Restated 2000 Long-Term Incentive Plan (the “Plan”). The Plan revised the terms and conditions of the 2000 Long-Term Incentive Plan to increase the shares available for grant under the plan by 650,000 shares, permit certain awards under the Plan to continue to qualify for the exemption from the $1.0 million deduction limit under Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”), and include and clarify several features that promote good governance. At September 30, 2015, there were 656,210 shares available for awards that could be granted under the Company’s Amended and Restated 2000 Long-Term Incentive Plan. Option Awards A summary of the Company’s stock option activity and related information for the nine months ended September 30, 2015 is as follows: Options Weighted- Weighted- Aggregate Options outstanding, January 1, 2015 2,326,627 $ 14.19 Grants 29,600 15.23 Exercises (110,375 ) 8.84 Cancellations (30,750 ) 15.62 Expirations (23,900 ) 27.23 Options outstanding, September 30, 2015 2,191,202 14.31 5.3 $ 4,798,000 Options exercisable, September 30, 2015 1,670,910 $ 13.82 4.5 $ 4,422,000 The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value that would have been received by the option holders had all option holders exercised their stock options on September 30, 2015. The intrinsic value is calculated for each in-the-money stock option as the difference between the closing price of the Company’s common stock on September 30, 2015 and the exercise price. The total intrinsic value of stock options exercised for the nine months ended September 30, 2015 and 2014 was $639,000 and $3.0 million, respectively. The intrinsic value of a stock option that is exercised is calculated at the date of exercise. Total unrecognized stock option compensation expense at September 30, 2015, before the effect of income taxes, was $3.4 million and is expected to be recognized over a weighted-average period of 2.1 years. Restricted Stock A summary of the Company’s restricted stock activity and related information for the nine months ended September 30, 2015 is as follows: Restricted Weighted- Nonvested restricted shares, January 1, 2015 26,511 $ 15.86 Grants 95,073 14.84 Vested (24,649 ) 15.97 Nonvested restricted shares, September 30, 2015 96,935 $ 14.84 Total unrecognized compensation expense remaining $ 1,193,000 Weighted-average years expected to be recognized over 2.8 The total fair value of restricted stock that vested during the nine months ended September 30, 2015 was $374,000. Performance shares During the nine months ended September 30, 2015, awards for performance shares were granted under the Plan. Each performance award represents the right to receive up to 150% of the target number of shares of common stock. The number of shares of common stock earned will be determined based on the attainment of specified performance goals by December 31, 2017, as determined by the Compensation Committee. The shares are subject to the terms and conditions of the Plan. A summary of the Company’s performance-based award activity and related information for the nine months ended September 30, 2015 is as follows: Performance- Weighted- Nonvested performance-based awards, January 1, 2015 — $ — Grants (at target) 66,650 14.84 Nonvested performance-based awards, September 30, 2015 66,650 $ 14.84 Total unrecognized compensation expense remaining $ 831,000 Weighted-average years expected to be recognized over 2.3 The Company recognized total stock compensation expense of $0.8 million for the three months ended September 30, 2015, of which $0.5 million represents stock option compensation expense and $0.3 million represents restricted stock and performance based compensation expense. For the nine months ended September 30, 2015 the Company recognized total stock compensation expense of $2.3 million, of which $1.7 million represents stock option compensation expense, $0.5 million represents restricted stock and performance based stock compensation expense and $53,000 represents stock awards granted in 2015. Total stock compensation expense for the three and nine months ended September 30, 2014 was $680,000 and $2.1 million, respectively, of which $0.6 million and $1.9 million, respectively, represents stock option compensation expense, and $83,000 and $0.2 million, respectively, represents restricted stock compensation expense.

INCOME (LOSS) PER COMMON SHARE

INCOME (LOSS) PER COMMON SHARE	9 Months Ended
	Sep. 30, 2015
INCOME (LOSS) PER COMMON SHARE	NOTE H — INCOME (LOSS) PER COMMON SHARE Basic income (loss) per common share has been computed by dividing net income (loss) by the weighted-average number of shares of the Company’s common stock outstanding during the relevant period. Diluted income (loss) per common share adjusts net income (loss) and basic income (loss) per common share for the effect of all potentially dilutive shares of the Company’s common stock. The calculations of basic and diluted income (loss) per common share for the three and nine month periods ended September 30, 2015 and 2014 are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (in thousands, except per share amounts) Net income (loss) – basic and diluted $ 5,104 $ (1,586 ) $ 1,272 $ (7,717 ) Weighted-average shares outstanding – basic 13,912 13,619 13,824 13,460 Effect of dilutive securities: Stock options and restricted stock 395 — 418 — Weighted-average shares outstanding – diluted 14,307 13,619 14,242 13,460 Basic income (loss) per common share $ 0.37 $ (0.12 ) $ 0.09 $ (0.57 ) Diluted income (loss) per common share $ 0.36 $ (0.12 ) $ 0.09 $ (0.57 ) The computation of diluted income (loss) per common share for the three months ended September 30, 2015 excludes options to purchase 682,900 shares. The computation of diluted income (loss) per common share for the three months ended September 30, 2014 excludes options to purchase 2,377,519 shares. The computation of diluted income (loss) per common share for the nine months ended September 30, 2015 excludes options to purchase 1,732,076 shares. The computation of diluted income (loss) per common share for the nine months ended September 30, 2014 excludes options to purchase 2,443,481 shares. These shares were excluded due to their antidilutive effects.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2015
INCOME TAXES	NOTE I — INCOME TAXES On a quarterly basis, the Company evaluates its tax positions and revises its estimates accordingly. The estimated value of the Company’s uncertain tax positions at September 30, 2015 is a gross liability of tax and interest of $209,000. The Company believes that $57,000 of its tax positions will be resolved within the next twelve months. The Company has identified the following jurisdictions as “major” tax jurisdictions: U.S. Federal, California, Massachusetts, New York, New Jersey and the United Kingdom. The Company is no longer subject to U.S. Federal income tax examinations for the years prior to 2011. At September 30, 2015, the periods subject to examination for the Company’s major state jurisdictions are the years ended 2011 through 2014. The Company’s policy for recording interest and penalties is to record such items as a component of income taxes. Interest and penalties were not material to the Company’s financial position, results of operations or cash flows as of and for the three and nine months ended September 30, 2015 and 2014.

BUSINESS SEGMENTS

BUSINESS SEGMENTS	9 Months Ended
	Sep. 30, 2015
BUSINESS SEGMENTS	NOTE J — BUSINESS SEGMENTS The Company operates in three reportable business segments: U.S. Wholesale, International and Retail Direct. The U.S. Wholesale segment is the Company’s primary domestic business that designs, markets and distributes its products to retailers and distributors. The International segment consists of certain business operations conducted outside the U.S. which were previously included in the Wholesale segment. The Retail Direct segment is where the Company markets and sells a limited selection of its products directly to consumers through its Pfaltzgraff ® ® ® ® ® The Company has segmented its operations to reflect the manner in which management reviews and evaluates the results of its operations. While the three segments distribute similar products, the segments have been distinct due to the different methods the Company uses to sell, market and distribute the products. Management evaluates the performance of the U.S. Wholesale, International and Retail Direct segments based on net sales and income (loss) from operations. Such measures give recognition to specifically identifiable operating costs such as cost of sales, distribution expenses and selling, general and administrative expenses. Certain general and administrative expenses, such as senior executive salaries and benefits, stock compensation, director fees and accounting, legal and consulting fees, are not allocated to the specific segments and are reflected as unallocated corporate expenses. Three Months Ended Nine Months Ended 2015 2014 2015 2014 (in thousands) Net sales U.S. Wholesale $ 130,588 $ 125,341 $ 311,710 $ 296,155 International 28,812 33,247 76,641 87,969 Retail Direct 3,798 3,656 13,439 11,852 Total net sales $ 163,198 $ 162,244 $ 401,790 $ 395,976 Income (loss) from operations U.S. Wholesale $ 13,464 $ 9,919 $ 20,094 $ 13,096 International 608 2,141 (3,060 ) 1,226 Retail Direct (377 ) (372 ) (784 ) (1,088 ) Unallocated corporate expenses (3,933 ) (3,260 ) (9,646 ) (10,160 ) Total income from operations $ 9,762 $ 8,428 $ 6,604 $ 3,074 Depreciation and amortization U.S. Wholesale $ 2,164 $ 1,888 $ 6,609 $ 6,409 International 1,312 1,373 3,982 4,054 Retail Direct 34 38 112 165 Total depreciation and amortization $ 3,510 $ 3,299 $ 10,703 $ 10,628 September 30, December 31, 2015 2014 (in thousands) Assets U.S. Wholesale $ 326,290 $ 287,744 International 116,995 128,055 Retail Direct 400 535 Unallocated/ Corporate/ Other 6,279 5,068 Total assets $ 449,964 $ 421,402

CONTINGENCIES

CONTINGENCIES	9 Months Ended
	Sep. 30, 2015
CONTINGENCIES	NOTE K CONTINGENCIES Wallace Silversmiths de Puerto Rico, Ltd. (“WSPR”), a wholly-owned subsidiary of the Company, operates a manufacturing facility in San Germán, Puerto Rico that is leased from the Puerto Rico Industrial Development Company (“PRIDCO”). In March 2008, the United States Environmental Protection Agency (the “EPA”) announced that the San Germán Ground Water Contamination site in Puerto Rico (the “Site”) had been added to the Superfund National Priorities List due to contamination present in the local drinking water supply. In May 2008, WSPR received from the EPA a Notice of Potential Liability and Request for Information Pursuant to 42 U.S.C. Sections 9607(a) and 9604(e) of the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”). In July 2011, WSPR received a letter from the EPA requesting access to the property that it leases from PRIDCO to conduct environmental investigation, and the Company granted such access. In February 2013, the EPA requested access to conduct further environmental investigation at the property. PRIDCO agreed to such access and the Company consented. EPA conducted further investigation during 2013 and, in April 2015, notified the Company and PRIDCO that the results from vapor intrusion sampling may warrant implementation of measures to mitigate potential exposure to sub-slab soil gas. The Company reviewed the information provided by the EPA and requested that PRIDCO, as the property owner, find and implement a solution acceptable to the EPA. While WSPR did not cause the sub-surface condition that resulted in the potential for vapor intrusion, in order to protect the health of its employees and continue its business operations, it has nevertheless implemented corrective action measures to prevent vapor intrusion such as sealing floors of the building and conducting periodic air monitoring to address potential exposure. On August 13, 2015, the EPA released its remedial investigation and feasibility study (“RI/FS”) including a proposed plan for the cleanup remedy with respect to one of two operable units, or subsections, of the Site. The report includes four remedial alternatives, which range from a “no action” alternative to excavation and offsite disposal/ in-situ treatments with an estimated capital cost of $12.9 million plus an additional $0.6 million in operating costs. The EPA’s preferred remedy includes soil vapor extraction and dual phase extraction/ in-situ treatment as well as vapor intrusion mitigation with estimated capital costs of $5.4 million plus maintenance cost of $1.8 million, with the remedial action objectives set to be met in 10 years. The Site is in the early stage of the cleanup process and although the EPA has undertaken a RI/FS, no remedy has been selected at this time. WSPR never used the primary contaminant of concern and did not take up its tenancy at the Site until after EPA had discovered the contamination in the local water supply. EPA has also issued notices of potential liability to numerous other entities affiliated with the Site, which used the contaminants of concern. Accordingly, based on the above uncertainties and variables, it is not possible at this time for the Company to estimate its share of liability, if any, related to this matter. However, in the event of one or more adverse determinations related to this matter, it is possible that the ultimate liability resulting from this matter and the impact on the Company’s results of operations could be material. The Company is, from time to time, involved in other legal proceedings. The Company believes that other current litigation is routine in nature and incidental to the conduct of the Company’s business and that none such litigation, individually or collectively, would have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows.

OTHER

OTHER	9 Months Ended
	Sep. 30, 2015
OTHER	NOTE L OTHER Cash dividends Dividends declared in the nine months ended September 30, 2015 are as follows: Dividend per share Date declared Date of record Payment date $ 0.0375 March 4, 2015 May 1, 2015 May 15, 2015 $ 0.0375 June 10, 2015 July 31, 2015 August 14, 2015 $ 0.0425 August 4, 2015 October 30, 2015 November 13, 2015 On February 13, May 15, 2015 and August 14, 2015 the Company paid cash dividends of $514,000, $520,000 and $523,000, respectively. In the three months ended September 30, 2015, the Company reduced retained earnings for the accrual of $596,000 relating to the dividend payable on November 13, 2015. On November 3, 2015, the Board of Directors declared a quarterly dividend of $0.0425 per share payable on February 15, 2016 to shareholders of record on February 1, 2016. Supplemental cash flow information Nine Months Ended 2015 2014 (in thousands) Supplemental disclosure of cash flow information: Cash paid for interest $ 3,636 $ 3,664 Cash paid for taxes 6,883 4,771 Non-cash investing activities: Translation adjustment $ 4,681 $ 1,577 Components of accumulated other comprehensive loss, net Three Months Ended Nine Months Ended 2015 2014 2015 2014 (in thousands) Accumulated translation adjustment: Balance at beginning of period $ (9,187 ) $ (1,212 ) $ (7,680 ) $ (2,944 ) Translation loss during period (3,174 ) (3,309 ) (4,681 ) (1,577 ) Balance at end of period $ (12,361 ) $ (4,521 ) $ (12,361 ) $ (4,521 ) Accumulated deferred gains (losses) on cash flow hedges: Balance at beginning of period $ (55 ) $ (65 ) $ (18 ) $ (31 ) Derivative fair value adjustment, net of taxes of $22 and $49 for the three months ended September 30, 2015 and 2014, respectively, and $47 and $26 for the nine months ended September 30, 2015 and 2014, respectively. (34 ) 73 (71 ) 39 Balance at end of period $ (89 ) $ 8 $ (89 ) $ 8 Accumulated effect of retirement benefit obligations: Balance at beginning of period $ (2,184 ) $ (731 ) $ (2,224 ) $ (745 ) Amounts reclassified from accumulated other comprehensive loss: (1) Amortization of actuarial losses, net of taxes of $13 and $5 for the three months ended September 30, 2015 and 2014, respectively, and $40 and $14 for the nine months ended September 30, 2015 and 2014, respectively. 20 7 60 21 Balance at end of period $ (2,164 ) $ (724 ) $ (2,164 ) $ (724 ) Total accumulated other comprehensive loss at end of period $ (14,614 ) $ (5,237 ) $ (14,614 ) $ (5,237 ) (1) Amounts are recorded in selling, general and administrative expense on the condensed consolidated statements of operations. Review Report of Independent Registered Public Accounting Firm To the Board of Directors and Stockholders of Lifetime Brands, Inc.: We have reviewed the condensed consolidated balance sheet of Lifetime Brands, Inc. as of September 30, 2015, and the related condensed consolidated statements of operations and comprehensive income (loss) for the three and nine-month periods ended September 30, 2015 and 2014, and the related condensed consolidated statements of cash flows for the nine-month periods ended September 30, 2015 and 2014. These financial statements are the responsibility of the Company’s management. We conducted our review in accordance with the standards of the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States), the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to the condensed consolidated financial statements referred to above for them to be in conformity with U.S. generally accepted accounting principles. We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheet of Lifetime Brands, Inc. as of December 31, 2014, and the related consolidated statements of operations, comprehensive (loss) income, shareholders’ equity, and cash flows for the year then ended (not presented herein) and we expressed an unqualified audit opinion on those consolidated financial statements in our report dated March 16, 2015. We did not audit the consolidated financial statements of Grupo Vasconia, S.A.B. and Subsidiaries (a corporation in which the Company has a 30% interest), which statements have been audited by other auditors whose report has been furnished to us, and our opinion on the consolidated financial statements, insofar as it relates to the amounts included for Grupo Vasconia, S.A.B. and Subsidiaries, is based solely on the report of the other auditors. In the consolidated financial statements, the Company’s investment in Grupo Vasconia, S.A.B. and Subsidiaries is stated at $27.8 million at December 31, 2014, and the Company’s equity in the net income of Grupo Vasconia, S.A.B. and Subsidiaries is stated at $0.2 million for the year ended December 31, 2014. In our opinion, the accompanying condensed consolidated balance sheet of Lifetime Brands, Inc. as of December 31, 2014, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

BASIS OF PRESENTATION AND SUM19

BASIS OF PRESENTATION AND SUMMARY ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2015
Basis of presentation	Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments, which consist only of normal recurring accruals, considered necessary for a fair presentation have been included. These condensed consolidated financial statements should be read in conjunction with the condensed consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014. Operating results for the three and nine month periods ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. The Company’s business and working capital needs are highly seasonal, with a majority of sales occurring in the third and fourth quarters. In 2014 and 2013, net sales for the third and fourth quarters accounted for 60% and 61% of total annual net sales, respectively. In anticipation of the pre-holiday shipping season, inventory levels increase primarily in the June through October time period.
Revenue recognition	Revenue recognition The Company sells products wholesale, to retailers and distributors, and retail, directly to the consumer. Wholesale sales and retail sales are recognized when title passes to the customer, which is primarily at the shipping point for wholesale sales and upon delivery to the customer for retail sales. Shipping and handling fees that are billed to customers in sales transactions are included in net sales and amounted to $313,000 and $219,000 for the three months ended September 30, 2015 and 2014, respectively, and $1.0 million and $0.9 million for the nine months ended September 30, 2015 and 2014, respectively. Net sales exclude taxes that are collected from customers and remitted to the taxing authorities. The Company offers various sales incentives and promotional programs to its customers from time to time in the normal course of business. These incentives and promotions typically include arrangements such as cooperative advertising, buydowns, volume rebates and discounts. These arrangements and an estimate of sales returns are reflected as reductions in net sales in the Company’s condensed consolidated statements of operations.
Cost of sales	Cost of sales Cost of sales consists primarily of costs associated with the production and procurement of product, inbound freight costs, purchasing costs, royalties and other product procurement related charges.
Distribution expenses	Distribution expenses Distribution expenses consist primarily of warehousing expenses and freight-out expenses.
Inventory	Inventory Inventory consists principally of finished goods sourced from third-party suppliers. Inventory also includes finished goods, work in process and raw materials related to the Company’s manufacture of sterling silver products. Inventory is priced using the lower of cost (first-in, first-out basis) or market method. The Company estimates the selling price of its inventory on a product by product basis based on the current selling environment. If the estimated selling price is lower than the inventory’s cost, the Company reduces the value of the inventory to its net realizable value. The components of inventory are as follows: September 30, December 31, (in thousands) Finished goods $ 170,215 $ 134,564 Work in process 1,761 1,887 Raw materials 1,636 1,473 Total $ 173,612 $ 137,924
Fair value of financial instruments	Fair value of financial instruments The Company determined the carrying amounts of cash and cash equivalents, accounts receivable and accounts payable are reasonable estimates of their fair values because of their short-term nature. The Company determined that the carrying amounts of borrowings outstanding under its revolving credit facility, term loan and short term loan approximate fair value since such borrowings bear interest at variable market rates.
Derivatives	Derivatives The Company accounts for derivative instruments in accordance with Accounting Standard Codification (“ASC”) Topic No. 815, Derivatives and Hedging. ASC Topic No. 815 requires that all derivative instruments be recognized on the balance sheet at fair value as either an asset or liability. Changes in the fair value of derivatives that qualify as hedges and have been designated as part of a hedging relationship for accounting purposes have no net impact on earnings to the extent the derivative is considered highly effective in achieving offsetting changes in fair value or cash flows attributable to the risk being hedged, until the hedged item is recognized in earnings. If a derivative which is designated as part of a hedging relationship is considered ineffective in achieving offsetting changes in fair value or cash flows attributable to the risk being hedged, the changes in fair value are recorded in operations. For derivatives that do not qualify or are not designated as hedging instruments for accounting purposes, changes in fair value are recorded in operations.
Employee Healthcare	Employee healthcare The Company self-insures certain portions of its health insurance plan. The Company maintains an accrual for unpaid claims and estimated claims incurred but not yet reported (“IBNR”). Although management believes that it uses the best information available to estimate claims IBNR, actual claims may vary significantly from estimated claims.
New Accounting Pronouncements	New Accounting Pronouncements In September 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-16, Simplifying the Accounting for Measurement-Period Adjustments In July, 2015, the FASB issued ASU 2015-11, Inventory: Simplifying the Measurement of Inventory In April 2015, the FASB issued ASU 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement In April 2015, FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers

BASIS OF PRESENTATION AND SUM20

BASIS OF PRESENTATION AND SUMMARY ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2015
Components of Inventory	The components of inventory are as follows: September 30, December 31, (in thousands) Finished goods $ 170,215 $ 134,564 Work in process 1,761 1,887 Raw materials 1,636 1,473 Total $ 173,612 $ 137,924

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	9 Months Ended
	Sep. 30, 2015
Purchase Price of Acquisition	The purchase price has been determined to be as follows (in thousands): Cash $ 61,302 Share consideration issued (1) 8,382 Value of contingent consideration (2) 2,488 Working capital adjustment (3) 374 Total purchase price $ 72,546 (1) Share consideration issued is valued at the closing market price discounted to account for lack of marketability related to the lock up period as described in the share purchase agreement. (2) The value of contingent consideration represents the present value of the estimated payments related to the attainment of certain financial targets for the years 2014 through 2016, determined as of the date of the acquisition. The maximum undiscounted contingent consideration to be paid under the agreement is £5.5 million ($9.0 million). (3) A working capital adjustment was made in May 2014 as provided for in the share purchase agreement.

INVESTMENTS (Tables)

INVESTMENTS (Tables)	9 Months Ended
	Sep. 30, 2015
Summarized Statement of Income Information for Vasconia in USD and MXN	A summarized statement of income information for Vasconia in USD and MXN is as follows: Three Months Ended September 30, 2015 2014 (in thousands) USD MXN USD MXN Net sales $ 42,759 $ 701,631 $ 45,635 $ 598,197 Gross profit 7,755 127,258 8,173 107,134 Income from operations 2,134 35,012 1,720 22,547 Net income 1,210 19,859 1,173 15,381 Nine Months Ended September 30, 2015 2014 (in thousands) USD MXN USD MXN Net Sales $ 139,748 $ 2,169,538 $ 137,348 $ 1,799,920 Gross Profit 27,838 431,333 24,989 327,454 Income from operations 8,742 135,210 5,697 74,628 Net Income 4,774 73,981 2,649 34,575

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	9 Months Ended
	Sep. 30, 2015
Components of Intangible Assets	Intangible assets consist of the following (in thousands): September 30, 2015 December 31, 2014 Gross Accumulated Net Gross Accumulated Net Goodwill $ 18,101 $ — $ 18,101 $ 18,101 $ — $ 18,101 Indefinite-lived intangible assets: Trade names 7,616 — 7,616 7,616 — 7,616 Finite-lived intangible assets: Licenses 15,847 (8,349 ) 7,498 15,847 (8,007 ) 7,840 Trade names 29,724 (6,245 ) 23,479 29,768 (4,568 ) 25,200 Customer relationships 50,823 (9,793 ) 41,030 50,823 (6,754 ) 44,069 Other 1,202 (583 ) 619 1,202 (431 ) 771 Total $ 123,313 $ (24,970 ) $ 98,343 $ 123,357 $ (19,760 ) $ 103,597

DERIVATIVES (Tables)

DERIVATIVES (Tables)	9 Months Ended
	Sep. 30, 2015
Fair Values of Derivative Financial Instruments Included in Condensed Consolidated Balance Sheets	The fair values of the Company’s derivative financial instruments included in the condensed consolidated balance sheets are presented as follows (in thousands): Liabilities Derivatives designated as hedging instruments Balance Sheet Location September 30, December 31, Interest rate swaps Deferred rent & other $ 148 $ 32 Assets Derivatives not designated as hedging instruments Balance Sheet Location September 30, December 31, Foreign exchange contracts Prepaid expenses and $ 278 $ —
Gains and Losses Related to Derivative Financial Instruments Designated as Hedging Instruments and Not Designated as Hedging Instruments	The amounts of the gains and losses related to the Company’s derivative financial instruments designated as hedging instruments are presented as follows (in thousands): Amount of Gain or (Loss) Recognized in OCI on Derivatives Derivatives designated as hedging Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Interest rate swaps $ (34 ) $ 73 $ (71 ) $ 39 Derivatives not designated as hedging instruments Location of Gain or (Loss) Amount of Gain or (Loss) Recognized in Earnings on Derivatives Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Foreign exchange contracts Selling, general and $ 161 $ 500 $ 283 $ 76

STOCK COMPENSATION (Tables)

STOCK COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2015
Summary of Stock Option Activity and Related Information	A summary of the Company’s stock option activity and related information for the nine months ended September 30, 2015 is as follows: Options Weighted- Weighted- Aggregate Options outstanding, January 1, 2015 2,326,627 $ 14.19 Grants 29,600 15.23 Exercises (110,375 ) 8.84 Cancellations (30,750 ) 15.62 Expirations (23,900 ) 27.23 Options outstanding, September 30, 2015 2,191,202 14.31 5.3 $ 4,798,000 Options exercisable, September 30, 2015 1,670,910 $ 13.82 4.5 $ 4,422,000
Summary of Restricted Stock Activity	A summary of the Company’s restricted stock activity and related information for the nine months ended September 30, 2015 is as follows: Restricted Weighted- Nonvested restricted shares, January 1, 2015 26,511 $ 15.86 Grants 95,073 14.84 Vested (24,649 ) 15.97 Nonvested restricted shares, September 30, 2015 96,935 $ 14.84 Total unrecognized compensation expense remaining $ 1,193,000 Weighted-average years expected to be recognized over 2.8
Summary of Performance-based Award Activity	A summary of the Company’s performance-based award activity and related information for the nine months ended September 30, 2015 is as follows: Performance- Weighted- Nonvested performance-based awards, January 1, 2015 — $ — Grants (at target) 66,650 14.84 Nonvested performance-based awards, September 30, 2015 66,650 $ 14.84 Total unrecognized compensation expense remaining $ 831,000 Weighted-average years expected to be recognized over 2.3

INCOME (LOSS) PER COMMON SHARE

INCOME (LOSS) PER COMMON SHARE (Tables)	9 Months Ended
	Sep. 30, 2015
Calculations of Basic and Diluted Income (Loss) per Common Share	The calculations of basic and diluted income (loss) per common share for the three and nine month periods ended September 30, 2015 and 2014 are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (in thousands, except per share amounts) Net income (loss) – basic and diluted $ 5,104 $ (1,586 ) $ 1,272 $ (7,717 ) Weighted-average shares outstanding – basic 13,912 13,619 13,824 13,460 Effect of dilutive securities: Stock options and restricted stock 395 — 418 — Weighted-average shares outstanding – diluted 14,307 13,619 14,242 13,460 Basic income (loss) per common share $ 0.37 $ (0.12 ) $ 0.09 $ (0.57 ) Diluted income (loss) per common share $ 0.36 $ (0.12 ) $ 0.09 $ (0.57 )

BUSINESS SEGMENTS (Tables)

BUSINESS SEGMENTS (Tables)	9 Months Ended
	Sep. 30, 2015
Segment Reporting Information	The Company has segmented its operations to reflect the manner in which management reviews and evaluates the results of its operations. While the three segments distribute similar products, the segments have been distinct due to the different methods the Company uses to sell, market and distribute the products. Management evaluates the performance of the U.S. Wholesale, International and Retail Direct segments based on net sales and income (loss) from operations. Such measures give recognition to specifically identifiable operating costs such as cost of sales, distribution expenses and selling, general and administrative expenses. Certain general and administrative expenses, such as senior executive salaries and benefits, stock compensation, director fees and accounting, legal and consulting fees, are not allocated to the specific segments and are reflected as unallocated corporate expenses. Three Months Ended Nine Months Ended 2015 2014 2015 2014 (in thousands) Net sales U.S. Wholesale $ 130,588 $ 125,341 $ 311,710 $ 296,155 International 28,812 33,247 76,641 87,969 Retail Direct 3,798 3,656 13,439 11,852 Total net sales $ 163,198 $ 162,244 $ 401,790 $ 395,976 Income (loss) from operations U.S. Wholesale $ 13,464 $ 9,919 $ 20,094 $ 13,096 International 608 2,141 (3,060 ) 1,226 Retail Direct (377 ) (372 ) (784 ) (1,088 ) Unallocated corporate expenses (3,933 ) (3,260 ) (9,646 ) (10,160 ) Total income from operations $ 9,762 $ 8,428 $ 6,604 $ 3,074 Depreciation and amortization U.S. Wholesale $ 2,164 $ 1,888 $ 6,609 $ 6,409 International 1,312 1,373 3,982 4,054 Retail Direct 34 38 112 165 Total depreciation and amortization $ 3,510 $ 3,299 $ 10,703 $ 10,628 September 30, December 31, 2015 2014 (in thousands) Assets U.S. Wholesale $ 326,290 $ 287,744 International 116,995 128,055 Retail Direct 400 535 Unallocated/ Corporate/ Other 6,279 5,068 Total assets $ 449,964 $ 421,402

OTHER (Tables)

OTHER (Tables)	9 Months Ended
	Sep. 30, 2015
Cash Dividends Declared	Dividends declared in the nine months ended September 30, 2015 are as follows: Dividend per share Date declared Date of record Payment date $ 0.0375 March 4, 2015 May 1, 2015 May 15, 2015 $ 0.0375 June 10, 2015 July 31, 2015 August 14, 2015 $ 0.0425 August 4, 2015 October 30, 2015 November 13, 2015
Supplemental Cash Flow Information	Supplemental cash flow information Nine Months Ended 2015 2014 (in thousands) Supplemental disclosure of cash flow information: Cash paid for interest $ 3,636 $ 3,664 Cash paid for taxes 6,883 4,771 Non-cash investing activities: Translation adjustment $ 4,681 $ 1,577
Components of Accumulated Other Comprehensive Loss, Net	Components of accumulated other comprehensive loss, net Three Months Ended Nine Months Ended 2015 2014 2015 2014 (in thousands) Accumulated translation adjustment: Balance at beginning of period $ (9,187 ) $ (1,212 ) $ (7,680 ) $ (2,944 ) Translation loss during period (3,174 ) (3,309 ) (4,681 ) (1,577 ) Balance at end of period $ (12,361 ) $ (4,521 ) $ (12,361 ) $ (4,521 ) Accumulated deferred gains (losses) on cash flow hedges: Balance at beginning of period $ (55 ) $ (65 ) $ (18 ) $ (31 ) Derivative fair value adjustment, net of taxes of $22 and $49 for the three months ended September 30, 2015 and 2014, respectively, and $47 and $26 for the nine months ended September 30, 2015 and 2014, respectively. (34 ) 73 (71 ) 39 Balance at end of period $ (89 ) $ 8 $ (89 ) $ 8 Accumulated effect of retirement benefit obligations: Balance at beginning of period $ (2,184 ) $ (731 ) $ (2,224 ) $ (745 ) Amounts reclassified from accumulated other comprehensive loss: (1) Amortization of actuarial losses, net of taxes of $13 and $5 for the three months ended September 30, 2015 and 2014, respectively, and $40 and $14 for the nine months ended September 30, 2015 and 2014, respectively. 20 7 60 21 Balance at end of period $ (2,164 ) $ (724 ) $ (2,164 ) $ (724 ) Total accumulated other comprehensive loss at end of period $ (14,614 ) $ (5,237 ) $ (14,614 ) $ (5,237 ) (1) Amounts are recorded in selling, general and administrative expense on the condensed consolidated statements of operations.

Basis of Presentation and Sum29

Basis of Presentation and Summary Accounting Policies - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014	Dec. 31, 2013
Schedule Of Significant Accounting Policies [Line Items]
Percentage of total annual net sales in the third and fourth quarters					60.00%	61.00%
Shipping and handling revenue	$ 313,000	$ 219,000	$ 1,000,000	$ 900,000

Components of Inventory (Detail

Components of Inventory (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Inventory [Line Items]
Finished goods	$ 170,215	$ 134,564
Work in process	1,761	1,887
Raw materials	1,636	1,473
Total	$ 173,612	$ 137,924

Acquisitions - Additional Infor

Acquisitions - Additional Information (Detail) - Thomas Plant $ / shares in Units, £ in Millions, $ in Millions	Jan. 15, 2014USD ($)shares	Jan. 15, 2014GBP (£)shares	Sep. 30, 2015USD ($)	Sep. 30, 2015GBP (£)	Sep. 30, 2014USD ($)$ / shares	Sep. 30, 2015GBP (£)	Jan. 15, 2014GBP (£)
Business Acquisition [Line Items]
Percentage of equity interests acquired	100.00%						100.00%
Business acquisition cash paid	$ 61.5	£ 37.4
Business acquisition, issuance of common stock shares | shares	581,432	581,432
Business acquisition, common stock value	$ 9	£ 5.5
Business acquisition, contingent cash consideration payable	$ 9						£ 5.5
Business combination related costs					$ 0.9
Net loss					$ (6.6)
Basic and diluted loss per common share | $ / shares					$ (0.49)
Amended Agreement
Business Acquisition [Line Items]
Fair value of contingent consideration			$ 4.8			£ 3.2
Charge recoded in selling, general and administrative expenses			$ 1.5	£ 1
Cost of Sales
Business Acquisition [Line Items]
Business combination increase in fair value of inventory					$ 0.9

Purchase Price of Acquisition (

Purchase Price of Acquisition (Detail) $ in Thousands	Jan. 15, 2014USD ($)
Business Acquisition [Line Items]
Cash	$ 61,302
Share consideration issued	8,382	[1]
Value of contingent consideration	2,488	[2]
Working capital adjustment	374	[3]
Total purchase price	$ 72,546
[1]	Share consideration issued is valued at the closing market price discounted to account for lack of marketability related to the lock up period as described in the share purchase agreement.
[2]	The value of contingent consideration represents the present value of the estimated payments related to the attainment of certain financial targets for the years 2014 through 2016, determined as of the date of the acquisition. The maximum undiscounted contingent consideration to be paid under the agreement is £5.5 million ($9.0 million).
[3]	A working capital adjustment was made in May 2014 as provided for in the share purchase agreement.

Purchase Price of Acquisition33

Purchase Price of Acquisition (Parenthetical) (Detail) - Jan. 15, 2014 £ in Millions, $ in Millions	USD ($)	GBP (£)
Thomas Plant
Business Acquisition [Line Items]
Undiscounted deferred and contingent consideration, higher range	$ 9	£ 5.5

Investments - Additional Inform

Investments - Additional Information (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2015USD ($)MXN / $	Sep. 30, 2014USD ($)MXN / $	Sep. 30, 2015USD ($)MXN / $	Sep. 30, 2014USD ($)MXN / $	Dec. 31, 2014USD ($)MXN / $
Schedule of Equity Method Investments [Line Items]
Equity in earnings (losses), net of taxes	$ (459,000)	$ (5,193,000)	$ (169,000)	$ (5,360,000)
Grupo Vasconia S.A.B.
Schedule of Equity Method Investments [Line Items]
Percentage of ownership in equity method investment	30.00%		30.00%
Exchange rate at period end - MXN to USD | MXN / $	17.01		17.01		14.74
Increase (decrease) in equity method investment			$ (5,100,000)	(1,300,000)
Equity in earnings (losses), net of taxes	$ (500,000)	$ 300,000	(200,000)	$ 600,000
Equity in earnings (losses), deferred taxes	800,000		1,300,000
Fair value of investment	31,500,000		31,500,000		$ 30,800,000
Carrying value of investment	$ 24,000,000		$ 24,000,000		27,800,000
Grupo Vasconia S.A.B. | Prepaid expenses and other current assets
Schedule of Equity Method Investments [Line Items]
Due from related party					33,000
Grupo Vasconia S.A.B. | Transaction 02
Schedule of Equity Method Investments [Line Items]
Average daily exchange rate for period - MXN to USD | MXN / $	16.41	13.11
Grupo Vasconia S.A.B. | Transaction 02 | Minimum
Schedule of Equity Method Investments [Line Items]
Average daily exchange rate for period - MXN to USD | MXN / $			14.94	13.05
Grupo Vasconia S.A.B. | Transaction 02 | Maximum
Schedule of Equity Method Investments [Line Items]
Average daily exchange rate for period - MXN to USD | MXN / $			16.41	13.11
GS Internacional S/A
Schedule of Equity Method Investments [Line Items]
Percentage of ownership in equity method investment	40.00%		40.00%
Equity in earnings (losses), net of taxes		$ 5,500,000		$ 5,900,000
Carrying value of investment	$ 0		$ 0		$ 0
Impairment on equity method investment, net of tax		$ 5,200,000		$ 5,200,000

Summarized Statement of Income

Summarized Statement of Income Information for Vasconia in USD and MXN (Detail) MXN in Thousands, $ in Thousands	3 Months Ended				9 Months Ended
	Sep. 30, 2015USD ($)	Sep. 30, 2015MXN	Sep. 30, 2014USD ($)	Sep. 30, 2014MXN	Sep. 30, 2015USD ($)	Sep. 30, 2015MXN	Sep. 30, 2014USD ($)	Sep. 30, 2014MXN
Schedule of Equity Method Investments [Line Items]
Net sales	$ 163,198		$ 162,244		$ 401,790		$ 395,976
Gross profit	56,952		57,923		145,371		143,107
Income from operations	9,762		8,428		6,604		3,074
Net Income	5,104		(1,586)		1,272		(7,717)
Grupo Vasconia S.A.B.
Schedule of Equity Method Investments [Line Items]
Net sales	42,759	MXN 701,631	45,635	MXN 598,197	139,748	MXN 2,169,538	137,348	MXN 1,799,920
Gross profit	7,755	127,258	8,173	107,134	27,838	431,333	24,989	327,454
Income from operations	2,134	35,012	1,720	22,547	8,742	135,210	5,697	74,628
Net Income	$ 1,210	MXN 19,859	$ 1,173	MXN 15,381	$ 4,774	MXN 73,981	$ 2,649	MXN 34,575

Components of Intangible Assets

Components of Intangible Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Schedule of Intangible Assets Disclosure [Line Items]
Goodwill, Gross	$ 18,101	$ 18,101
Goodwill, Accumulated Amortization	0	0
Goodwill, Net	18,101	18,101
Indefinite-Lived Trade Names, Gross	7,616	7,616
Indefinite-Lived Trade Names, Accumulated Amortization	0	0
Indefinite-Lived Trade Names, Net	7,616	7,616
Intangible Assets, Gross (Including Goodwill)	123,313	123,357
Finite-Lived Intangible Assets, Accumulated Amortization	(24,970)	(19,760)
Intangible Assets, Net (Including Goodwill)	98,343	103,597
License
Schedule of Intangible Assets Disclosure [Line Items]
Finite-Lived Intangible Assets, Gross	15,847	15,847
Finite-Lived Intangible Assets, Accumulated Amortization	(8,349)	(8,007)
Finite-Lived Intangible Assets, Net	7,498	7,840
Trade Names
Schedule of Intangible Assets Disclosure [Line Items]
Finite-Lived Intangible Assets, Gross	29,724	29,768
Finite-Lived Intangible Assets, Accumulated Amortization	(6,245)	(4,568)
Finite-Lived Intangible Assets, Net	23,479	25,200
Customer Relationships
Schedule of Intangible Assets Disclosure [Line Items]
Finite-Lived Intangible Assets, Gross	50,823	50,823
Finite-Lived Intangible Assets, Accumulated Amortization	(9,793)	(6,754)
Finite-Lived Intangible Assets, Net	41,030	44,069
Other
Schedule of Intangible Assets Disclosure [Line Items]
Finite-Lived Intangible Assets, Gross	1,202	1,202
Finite-Lived Intangible Assets, Accumulated Amortization	(583)	(431)
Finite-Lived Intangible Assets, Net	$ 619	$ 771

Intangible Assets - Additional

Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Oct. 01, 2014
Schedule of Intangible Assets Disclosure [Line Items]
Intangible asset impairment	$ 3,384		$ 3,384
Minimum
Schedule of Intangible Assets Disclosure [Line Items]
Remaining useful lives of trade names		10 years
Maximum
Schedule of Intangible Assets Disclosure [Line Items]
Remaining useful lives of trade names		15 years
Fair Value, Inputs, Level 3 | Trade Names | Minimum
Schedule of Intangible Assets Disclosure [Line Items]
Indefinite-lived intangible assets impairment, discount rate				14.00%
Indefinite-lived intangible assets impairment, growth rate				2.50%
Fair Value, Inputs, Level 3 | Trade Names | Maximum
Schedule of Intangible Assets Disclosure [Line Items]
Indefinite-lived intangible assets impairment, discount rate				15.50%
Indefinite-lived intangible assets impairment, growth rate				3.00%

Debt - Additional Information (

Debt - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2015USD ($)	Sep. 30, 2015CNY (¥)	May. 30, 2015USD ($)	Dec. 31, 2014USD ($)	Jan. 31, 2014USD ($)
Debt Instrument [Line Items]
Outstanding borrowing under credit facility				$ 765,000
Amended and Restated Credit Agreement
Debt Instrument [Line Items]
Excess cash flow percentage related to prepayment of term loan			50.00%
Minimum availability under revolving credit to maintain minimum fixed charge ratio for four consecutive months	$ 17,500,000
Amended and Restated Credit Agreement | Additional in excess of the applicable level for any fiscal quarter ending on September 30th
Debt Instrument [Line Items]
Senior leverage ratio	25.00%	25.00%
Amended and Restated Credit Agreement | Minimum
Debt Instrument [Line Items]
Prepayment of term loan			$ 10,000,000
Second Amended and Restated Credit Agreement
Debt Instrument [Line Items]
Credit facility, maturity date	2019-01
Revolving Credit Facility
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity	$ 175,000,000
Open letters of credit	900,000			2,300,000
Outstanding borrowing under credit facility	118,800,000			92,700,000
Availability under revolving credit facility	$ 55,300,000
Credit facility, maximum borrowing capacity terms	The borrowing capacity under the Revolving Credit Facility depends, in part, on eligible levels of accounts receivable and inventory that fluctuate regularly and certain trademark values based upon periodic appraisals, and may be lower in the first and second quarters when the Company's inventory level is lower due to seasonality.
Percentage of capital stock of foreign subsidiaries pledged as collateral	65.00%	65.00%
Revolving Credit Facility | Minimum
Debt Instrument [Line Items]
Interest rates on outstanding borrowings	2.125%	2.125%
Percentage of line of credit facility unused capacity commitment fee	0.375%
Revolving Credit Facility | Maximum
Debt Instrument [Line Items]
Interest rates on outstanding borrowings	4.6875%	4.6875%
Revolving Credit Facility | Amended and Restated Credit Agreement
Debt Instrument [Line Items]
New Term Loan facility					$ 50,000,000
Credit facility terms	The Credit Agreement provides for customary restrictions and events of default. Restrictions include limitations on additional indebtedness, acquisitions, investments and payment of dividends, among other things. Further, the Credit Agreement provides that at any time any Term Loan is outstanding or at any time no Term Loan is outstanding and availability under the Revolving Credit Facility is less than $17.5 million and continuing until availability of at least $20.0 million is maintained for three consecutive months, the Company is required to maintain a minimum fixed charge coverage ratio of 1.20 to 1.00 for each of four consecutive fiscal quarter periods. The Credit Agreement also provides that when the Term Loan is outstanding, the Company is required to maintain a Senior Leverage Ratio within defined parameters not to exceed 4.50 to 1.00 for each remaining fiscal quarter ending during 2015; 4.00 to 1.00 for each fiscal quarter ending March 31, June 30 and September 30, 2016; and 3.75 to 1.00 for each fiscal quarter ending thereafter. For any fiscal quarter of the Company ending on September 30th, the maximum Senior Leverage Ratio is increased by an additional 0.25:1.00 in excess of the applicable level otherwise provided.
Revolving Credit Facility | Amended and Restated Credit Agreement | For each of four consecutive fiscal quarter periods
Debt Instrument [Line Items]
Fixed charge coverage ratio minimum	120.00%	120.00%
Revolving Credit Facility | Amended and Restated Credit Agreement | For each remaining fiscal quarter ending during 2015
Debt Instrument [Line Items]
Senior leverage ratio	450.00%	450.00%
Revolving Credit Facility | Amended and Restated Credit Agreement | For each fiscal quarter ending March 31, June 30 and September 30, 2016
Debt Instrument [Line Items]
Senior leverage ratio	400.00%	400.00%
Revolving Credit Facility | Amended and Restated Credit Agreement | For each fiscal quarter ending thereafter
Debt Instrument [Line Items]
Senior leverage ratio	375.00%	375.00%
Revolving Credit Facility | Amended and Restated Credit Agreement | Minimum
Debt Instrument [Line Items]
Minimum availability under revolving credit to maintain minimum fixed charge ratio for three consecutive months	$ 20,000,000
Revolving Credit Facility | Multi-currency Borrowings
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity	40,000,000
Term Loan
Debt Instrument [Line Items]
Outstanding borrowing under credit facility	37,500,000			$ 45,000,000
HSBC Facility
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity	2,900,000	¥ 18,000,000
Outstanding borrowing under credit facility	0	¥ 0
Other than certain subordinated indebtedness
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity	$ 41,900,000

Derivatives - Additional Inform

Derivatives - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2015USD ($)
Derivative [Line Items]
Commencement date	2013-03
Expiration date	Jun. 30, 2018
Duration of losses in other comprehensive income expected to be reclassified to earnings	12 months
Cash Flow Hedging | Interest Expense
Derivative [Line Items]
Gains (losses) in other comprehensive income expected to be reclassified to earnings	$ 0
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Contract
Derivative [Line Items]
Notional amount	21,400,000
Not Designated as Hedging Instrument | Foreign exchange contract
Derivative [Line Items]
Notional amount	$ 12,100,000

Fair Values of Derivative Finan

Fair Values of Derivative Financial Instruments Included in Condensed Consolidated Balance Sheets (Detail) - Fair Value, Observable inputs, Level 2 - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Designated as Hedging Instrument | Interest Rate Contract | Deferred rent & other Long-term liability
Derivatives, Fair Value [Line Items]
Fair Value of Derivative Liabilities	$ 148	$ 32
Not Designated as Hedging Instrument | Foreign exchange contract | Prepaid expenses and other current assets
Derivatives, Fair Value [Line Items]
Fair Value of Derivative Assets	$ 278

Gains and Losses Related to Der

Gains and Losses Related to Derivative Financial Instruments Designated as Hedging Instruments (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Designated as Hedging Instrument | Interest Rate Contract
Derivative Instruments, Gain (Loss) [Line Items]
Gains/(Losses) recognized in OCI	$ (34)	$ 73	$ (71)	$ 39

Gains and Losses Related to D42

Gains and Losses Related to Derivative Financial Instruments Not Designated as Hedging Instruments (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Not Designated as Hedging Instrument | Foreign exchange contract | Selling, general and administrative expenses
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in Income on Derivative	$ 161	$ 500	$ 283	$ 76

Stock Compensation - Additional

Stock Compensation - Additional Information (Detail) - USD ($)	Jun. 10, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Amount of limitation on deductibility under Section 162(m) of Internal Revenue Code (in dollars)	$ 1,000,000
Total intrinsic value of stock options exercised				$ 639,000	$ 3,000,000
Unrecognized stock option compensation cost		$ 3,400,000		3,400,000
Stock compensation expense		800,000	$ 680,000	2,314,000	2,133,000
Stock compensation expense, stock option		500,000	600,000	1,700,000	1,900,000
Stock compensation expense, Performance based and restricted share		300,000	$ 83,000	$ 500,000	$ 200,000
Stock compensation expense, stock awards granted in 2015		$ 53,000
Long Term Incentive Plan 2000
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase shares available for grant under the plan	650,000
Shares available for awards		656,210		656,210
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average recognition period				2 years 1 month 6 days
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average recognition period				2 years 9 months 18 days
Total fair value of restricted stock vested				$ 374,000
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average recognition period				2 years 3 months 18 days
Performance Shares | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares range percentage		150.00%

Summary of Stock Option (Detail

Summary of Stock Option (Detail)	9 Months Ended
	Sep. 30, 2015USD ($)$ / sharesshares
Options
Beginning balance | shares	2,326,627
Grants | shares	29,600
Exercises | shares	(110,375)
Cancellations | shares	(30,750)
Expirations | shares	(23,900)
Ending balance | shares	2,191,202
Options exercisable at End of Period | shares	1,670,910
Weighted-average exercise price
Beginning balance	$ 14.19
Grants	15.23
Exercises	8.84
Cancellations	15.62
Expirations	27.23
Ending balance	14.31
Options exercisable at End of Period	$ 13.82
Weighted-average remaining contractual life (years)
Options outstanding, Ending balance	5 years 3 months 18 days
Options exercisable, Ending balance	4 years 6 months
Aggregate intrinsic value
Options outstanding, end of period | $	$ 4,798,000
Options exercisable, end of period | $	$ 4,422,000

Summary of Restricted Stock Act

Summary of Restricted Stock Activity (Detail)	9 Months Ended
	Sep. 30, 2015USD ($)$ / sharesshares
Weighted-average exercise price
Grants	$ 15.23
Restricted Stock
Number of shares
Beginning balance | shares	26,511
Grants | shares	95,073
Vested | shares	(24,649)
Ending balance | shares	96,935
Total unrecognized compensation expense remaining | $	$ 1,193,000
Weighted-average years expected to be recognized over	2 years 9 months 18 days
Weighted-average exercise price
Beginning balance	$ 15.86
Grants	14.84
Vested	15.97
Ending balance	$ 14.84

Summary of Performance-based Aw

Summary of Performance-based Award Activity (Detail) - Performance Shares	9 Months Ended
	Sep. 30, 2015USD ($)$ / sharesshares
Number of shares
Grants (at target) | shares	66,650
Ending balance | shares	66,650
Total unrecognized compensation expense remaining | $	$ 831,000
Weighted-average years expected to be recognized over	2 years 3 months 18 days
Weighted-average grant date fair value
Grants (at target)	$ 14.84
Ending balance	$ 14.84

Calculations of Basic and Dilut

Calculations of Basic and Diluted Loss per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share Disclosure [Line Items]
Net income (loss) - basic and diluted	$ 5,104	$ (1,586)	$ 1,272	$ (7,717)
Weighted-average shares outstanding - basic	13,912	13,619	13,824	13,460
Effect of dilutive securities:
Stock options and restricted stock	395		418
Weighted-average shares outstanding - diluted	14,307	13,619	14,242	13,460
Basic income (loss) per common share	$ 0.37	$ (0.12)	$ 0.09	$ (0.57)
Diluted income (loss) per common share	$ 0.36	$ (0.12)	$ 0.09	$ (0.57)

Income (Loss) per Common Shar48

Income (Loss) per Common Share - Additional Information (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Stock Options
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Antidilutive Securities Excluded from Computation of Diluted Income (Loss) Per Common Share	682,900	2,377,519	1,732,076	2,443,481

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2015USD ($)
Income Tax Examination [Line Items]
Gross liability for tax and interest positions	$ 209,000
Reduction in income tax liability if tax positions sustained	$ 57,000
Income tax examination years description	The Company is no longer subject to U.S. Federal income tax examinations for the years prior to 2011.
State Tax Authority | Minimum
Income Tax Examination [Line Items]
Income tax examination year	2,011
State Tax Authority | Maximum
Income Tax Examination [Line Items]
Income tax examination year	2,014

Business Segments - Additional

Business Segments - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2015Segment
Segment Reporting Information [Line Items]
Number of reportable business segment	3

Segment Reporting Information (

Segment Reporting Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Segment Reporting Information [Line Items]
Net sales	$ 163,198	$ 162,244	$ 401,790	$ 395,976
Depreciation and amortization	3,510	3,299	10,703	10,628
Income(loss) from operations	9,762	8,428	6,604	3,074
Assets	449,964		449,964		$ 421,402
Unallocated corporate expenses
Segment Reporting Information [Line Items]
Income(loss) from operations	(3,933)	(3,260)	(9,646)	(10,160)
Assets	6,279		6,279		5,068
U.S. Wholesale
Segment Reporting Information [Line Items]
Net sales	130,588	125,341	311,710	296,155
Depreciation and amortization	2,164	1,888	6,609	6,409
U.S. Wholesale | Operating Segments
Segment Reporting Information [Line Items]
Income(loss) from operations	13,464	9,919	20,094	13,096
Assets	326,290		326,290		287,744
International
Segment Reporting Information [Line Items]
Net sales	28,812	33,247	76,641	87,969
Depreciation and amortization	1,312	1,373	3,982	4,054
International | Operating Segments
Segment Reporting Information [Line Items]
Income(loss) from operations	608	2,141	(3,060)	1,226
Assets	116,995		116,995		128,055
Retail Direct
Segment Reporting Information [Line Items]
Net sales	3,798	3,656	13,439	11,852
Depreciation and amortization	34	38	112	165
Retail Direct | Operating Segments
Segment Reporting Information [Line Items]
Income(loss) from operations	(377)	$ (372)	(784)	$ (1,088)
Assets	$ 400		$ 400		$ 535

Contingencies - Additional Info

Contingencies - Additional Information (Detail) $ in Millions	Aug. 13, 2015USD ($)
Loss Contingencies [Line Items]
Remedial action objective time frame	10 years
Capital cost
Loss Contingencies [Line Items]
Remedial alternative, maximum	$ 12.9
Remedial alternative, EPA preferred remedy	5.4
Operating cost
Loss Contingencies [Line Items]
Remedial alternative, maximum	0.6
Maintenance cost
Loss Contingencies [Line Items]
Remedial alternative, EPA preferred remedy	$ 1.8

Cash Dividends Declared (Detail

Cash Dividends Declared (Detail) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Dividends Payable [Line Items]
Dividend per share	$ 0.0425	$ 0.0375	$ 0.1175	$ 0.1125
Payment date	Nov. 13, 2015
Dividend Payment 1st
Dividends Payable [Line Items]
Dividend per share			$ 0.0375
Date declared			Mar. 4, 2015
Date of record			May 1, 2015
Payment date			May 15, 2015
Dividend Payment 2nd
Dividends Payable [Line Items]
Dividend per share			$ 0.0375
Date declared			Jun. 10, 2015
Date of record			Jul. 31, 2015
Payment date			Aug. 14, 2015
Dividend Payment 3rd
Dividends Payable [Line Items]
Dividend per share			$ 0.0425
Date declared			Aug. 4, 2015
Date of record			Oct. 30, 2015
Payment date			Nov. 13, 2015

Other - Additional Information

Other - Additional Information (Detail) - USD ($)	Nov. 03, 2015	Aug. 14, 2015	May. 15, 2015	Feb. 13, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Other [Line Items]
Cash dividend paid		$ 523,000	$ 520,000	$ 514,000			$ 1,557,000	$ 1,517,000
Dividend payable					$ 596,000		$ 596,000
Dividend payable date					Nov. 13, 2015
Quarterly dividend declared					$ 0.0425	$ 0.0375	$ 0.1175	$ 0.1125
Subsequent Event | Dividend Declared
Other [Line Items]
Dividend payable date	Feb. 15, 2016
Dividend declaration date	Nov. 3, 2015
Quarterly dividend declared	$ 0.0425
Dividend declared, date of record	Feb. 1, 2016

Supplemental Cash Flow Informat

Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Supplemental disclosure of cash flow information:
Cash paid for interest	$ 3,636	$ 3,664
Cash paid for taxes	6,883	4,771
Non-cash investing activities:
Translation adjustment	$ 4,681	$ 1,577

Components of Accumulated Other

Components of Accumulated Other Comprehensive Loss, Net (Detail) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Accumulated translation adjustment:
Balance at beginning of period		$ (9,187)	$ (1,212)	$ (7,680)	$ (2,944)
Translation loss during period		(3,174)	(3,309)	(4,681)	(1,577)
Balance at end of period		(12,361)	(4,521)	(12,361)	(4,521)
Accumulated deferred gains (losses) on cash flow hedges:
Balance at beginning of period		(55)	(65)	(18)	(31)
Derivative fair value adjustment, net of taxes of $22 and $49 for the three months ended September 30, 2015 and 2014, respectively, and $47 and $26 for the nine months ended September 30, 2015 and 2014, respectively.		(34)	73	(71)	39
Balance at end of period		(89)	8	(89)	8
Accumulated effect of retirement benefit obligations:
Balance at beginning of period		(2,184)	(731)	(2,224)	(745)
Amounts reclassified from accumulated other comprehensive loss:
Amortization of actuarial losses, net of taxes of $13 and $5 for the three months ended September 30, 2015 and 2014, respectively, and $40 and $14 for the nine months ended September 30, 2015 and 2014, respectively.	[1]	20	7	60	21
Balance at end of period		(2,164)	(724)	(2,164)	(724)
Total accumulated other comprehensive loss at end of period		$ (14,614)	$ (5,237)	$ (14,614)	$ (5,237)	$ (9,922)
[1]	Amounts are recorded in selling, general and administrative expense on the condensed consolidated statements of operations.

Components of Accumulated Oth57

Components of Accumulated Other Comprehensive Loss, Net (Parenthetical) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Derivative fair value adjustment, tax	$ 22	$ 49	$ 47	$ 26
Amortization of actuarial losses, taxes	$ 13	$ 5	$ 40	$ 14