Blyth’s Second Quarter Net Earnings Jump 46%

Blyth, Inc., Greenwich, CT, reported that second quarter net sales increased 9% to $268.0 million from $245.6 million a year earlier. Operating profit increased 51% to $33.7 million compared to $22.3 million in the prior year period. Net earnings for the quarter were $18.8 million versus $12.9 million a year earlier, an increase of 46%.

Net sales for the six months ended July 31, 2002 increased 9% to $545.9 million from $503.1 million reported a year ago. Operating profit for the six months was $64.6 million versus $49.6 million last year, an increase of 30%. Net earnings increased 11% to $31.6 million, compared to $28.6 million for the prior year period.

Executives said Blyth’s second quarter results were influenced by several factors, including continued improvements in the company’s PartyLite direct selling unit. PartyLite’s worldwide sales increased 8% versus last year as improved new products, catalog presentation, leadership development tools and increases in independent sales consultants continued to have a positive impact on sales growth.

Secondly, Blyth’s worldwide wholesale candle and home fragrance sales declined 7% as economic sluggishness across North America and Europe, retailer caution and product development challenges in the North American premium channel offset increases in the company’s European premium and North American mass channel businesses.

Thirdly, sales growth in the Creative Expressions segment exceeded expectations due to strong shipments to national accounts and the inclusion of CBK, LTD., a premium home decor company that Blyth acquired in May, which was accretive to the company’s second quarter sales and earnings.

“We are pleased with our second quarter results, particularly given the very challenging retail environment in North America and Europe,” said Robert B. Goergen, chairman of the board and chief executive officer. “Management in our candle and home fragrance segment is focused on brand building and new product development, and we’re beginning to see the results. PartyLite continues to show improvement, as does our North American mass channel business. Blyth’s Creative Expressions businesses also had a good second quarter.”

On a segment basis, net sales in the candles and home fragrance segment were $209.4 million, compared to $207.0 million in the prior year period, an increase of 1%. Operating profit for this segment increased 33% to $23.3 million, compared to $17.5 million in last year’s second quarter. Net sales in the Creative Expressions segment increased 52% to $58.6 million versus $38.6 million one year ago, and operating income in this segment was $10.3 million compared to $4.8 million in the prior year period. Increases in this segment of Blyth’s business were partly attributable to the inclusion of CBK, LTD.