Blyth’s Quarterly Earnings Tumble 40%

Blyth Inc., the largest U.S. candle maker, said its quarterly profit fell 40%, in-line with its lowered expectations, as soft consumer spending restrained retailers’ orders.

Blyth, Greenwich, CT, said it earned $11.2 million in its second quarter ended July 31, compared with $18.8 million in the year-earlier period. On July 22, the company had warned of weaker-than-expected earnings due to the sluggish economy and cautious consumer buying.

“Significant retailer caution continued in the second quarter,” Robert Goergen, chairman and chief executive officer, said in a statement. “Because we believe that many independent retailers need more product in order to ensure a successful holiday season, we do anticipate a pick-up in consumer wholesale channel sales during the second half,” he said.

Quarterly sales rose 3% to $275.3 million, lifted by a weak dollar that inflated international results when converted into dollars. Excluding acquired and discontinued businesses, and the currency benefit, sales fell 8%.