An Even Flow at Blyth

Home fragrance and home decor, as well as health and wellness products, are keeping business on the move at Blyth, as the company posted flat net sales of $185.5 million for the first quarter ended April 30, 2011.

Operating profit for the first quarter was $3.0 million this year versus $10.4 million last year due to the impact of lower sales and profits at PartyLite, which more than offset improved sales and operating performance at the Miles Kimball Company and ViSalus Sciences, said the company. Net earnings from continuing operations for the first quarter slipped 2% to $2.1 million.

Commenting on the company’s financial results, Robert B. Goergen, Blyth’s chairman of the board and CEO, said, “We had a difficult first quarter driven by lower PartyLite sales versus last year as our core consumer was negatively impacted by rising gasoline and food prices.These increased expenses have a direct impact on consumer discretionary spending and make it increasingly challenging for PartyLite Consultants and Leaders to book and hold shows.

“Moreover,” Goergen continued, “higher commodity prices, increasing Asian-sourced product costs and higher ocean freight expense versus last year have also impacted Blyth’s costs which resulted in disappointing first quarter profits.Nevertheless, Miles Kimball Company management continues to execute profit improvement programs successfully, and strong sales and profit growth at ViSalus was also a very bright spot during the quarter.”