The Lion's Shield smith is a smith with a sign with a lion, and a shield. Inside, a Xvart watches knowingly as a smith forges things, as he points out the issues with what is presumably his apprentice.
Everything here costs 1 gold more. The Xvart wants better clothing, and will gild the Heroes' weapons if they buy clothing from Jack and give it to him. He is banned from Tailor Jack's.