As we see it, 4Q:25 was a solid finish to a dynamic year for Lifetime Brands as revenue of $204.1 million edged out our $200.6 million forecast and adjusted EPS of $1.05 handily beat our estimate of just $0.18. 4Q:25 EPS included an unexpected tax benefit of $1.6 million; if the tax rate had matched our projection, EPS would have been $0.67. While LCUT did not provide sales or earnings guidance (it will do this as usual in May when it reports 1Q:26 results), management said it expects to grow sales and improve profitability with a leaner cost structure in 2026. As we modestly increase our revenue forecasts, boost our operating margin expectations and trim our tax rate estimates, we now expect 2026 and 2027 EPS of $0.65 and $0.77, respectively (from $0.45 and $0.60 previously). Our moderate risk rating factors in our expected earnings recovery in 2026 and ample free cash flow prospects.