In March 2009, LCUT amended its loan agreements. As part of the amendment, LCUT dropped its covenant for Q3 sales down to $ 115 million. Last week, they amended this covenant down to $ 107 million. So I guess Q3 sales will be more than $ 107 million, but less than $ 115 million.
Retail sales (internet) have been running about $ 5 million per quarter after the stores were closed. So I guess wholesale sales for Q3 will be somewhere between $ 102 million and $ 110 million, and I'd bet more on the lower number. This is a drop of about 15% - 18% from last year.
LCUT's wholesale sales have held up OK so far this year, so a 15% drop is a bit of a surprise, and I don't think they can do much more than 10 - 20 cents EPS on those sales.
All this amended loan agreement means is that the bank will let this incompetent management team and board of directors made up of friends and family live to see another quarter of sales before they decide to pull the loan. Lifetime's incompetent management has put this company in to so much debt that they can not posisbly ever pay it all back. All they have is the ability to service the debt as long as the bond holders and the banks allow them to service the debt. Until the creditors can come up with a way to make themselves whole Lifetime will survive.