Blyth, Inc. Third Quarter Net Sales Up 19%

Blyth, Inc., Greenwich, CT, reported third quarter net sales jumped 19% to $431.9 million, compared to $362.2 million in the third quarter of 2002. Net third quarter earnings increased 14% to $34.8 million versus $30.5 million a year earlier.

On a segment basis, net sales in the candles and home fragrance segment were $267.3 million for the third quarter, compared to $267.9 million a year ago. Operating profit in this segment increased 3% to $33.1 million. Net sales in the creative expressions segment increased 75% for the third quarter to $164.7 million versus $94.3 million last year.

Net sales for the nine months ended Oct. 31 increased 12% to $1.0 billion from $908.1 million reported for the same period a year ago. Net earnings for the first nine months increased 6% to $65.6 million, compared to $62.1 million for the prior year period.

Executives said Blyth’s third quarter sales results were positively influenced by the inclusion of Miles Kimball and Kaemingk, seasonal businesses that the company acquired earlier this year. Other factors included improvements in PartyLite Worldwide (sales increased 6% for the period) and the impact of foreign currency translation from international sales.

“In combination with PartyLite’s European markets and recent acquisitions, we remain on track to accomplish our annual sales growth goal of 10% or better in what has been a very challenging year,” insisted Robert B. Goergen, Blyth’s board chairman and chief executive officer. “Our wholesale businesses, while negatively impacted by retailer caution all year, were able to avoid the more dramatic sales declines experienced by many of their competitors as this trend continued into the third quarter.”

The company’s third quarter results reflect restructuring charges of $0.8 million related to the planned closure early in calendar 2004 of Blyth’s Hyannis, MA candle-making factory. In the fourth quarter of fiscal year 2004, the company expects additional restructuring charges related to the Hyannis facility.