Blyth’s Third Quarter Profit Falls

Greenwich, CT-based Blyth, Inc. announced a 13% drop in third quarter profits. The company blamed a weak retail environment. As a result, the company has cut its projected earnings for the year.

Quarterly earnings were $30 million, compared to $34.8 million in the year-ago period. Net sales were $439.4 million, a 2% increase from a year earlier, helped primarily by the company’s December 2003 acquisition of Walter Drake.

Sales rose 2% in the wholesale segment, impacted by the April divestiture of Jeanmarie Creations.

Direct sales fell 9% to $156.1 million. Catalog and internet sales rose 50% to $54.1 million.

“We are disappointed in our third quarter results and believe that reduced consumer discretionary spending as a result of high gasoline prices led to lower than expected sales across each of our operating segments,” said Robert B. Goergen, chairman and chief executive officer.

In anticipation of continued softness in most of its business, Blyth lowered its fiscal 2005 earnings expectations to $2.05-2.15 a share, down from the previous forecast of $2.30-2.40.