Exchange Rates Hurt Blyth’s Results

Blyth, Inc., Greenwich, CT, a global leader in home fragrance products, today re-affirmed management’s expectation of double-digit underlying growth for the remainder of the fiscal year, following the posting of record third quarter results. In the absence of a deterioration in the values of the euro and pound sterling, the company would have anticipated sales growth of 11-12% and EPS growth of 12-16% in the fourth fiscal quarter. As a result of the deterioration of such currencies, the company expects to report sales growth in the 5-6% range and reported EPS growth in the 5-9% range in the fourth quarter.

Absent such deterioration, the company would have anticipated full year projections of 10% sales growth and 12 – 13% EPS growth. Full year reported net sales are expected to approximate 7%. Reported full year EPS, at $2.05 – $2.07, is expected to grow 8-10% compared to $1.89 in the prior fiscal year.

Commenting on the sales and earnings projections, Robert B. Goergen, chairman and CEO, “We are pleased with our third quarter results and the outlook for another year of record returns at Blyth, particularly given the difficulties posed by the deterioration of foreign currencies and the current retail environment both in North America and Europe.”

Sales within the U.K. and continental Europe account for approximately 21% of total Company sales. Blyth’s European subsidiaries experience their strongest sales during the fourth fiscal quarter, which for these businesses is October, November and December. Therefore, the continued deterioration of the euro and pound sterling, which during the third fiscal quarter had already deteriorated 14% and 8%, respectively, from a year ago, will have its greatest impact in the Company’s final fiscal quarter.

Mr. Goergen also noted that, “We believe Blyth’s record sales performance will continue into the future as the result of strong management teams able to bring innovative new products to market quickly in each channel of distribution. Blyth is the only company among its major competitors to have a presence in every channel.”

Blyth, Inc., headquartered in Greenwich, CT, designs, manufactures and markets an extensive line of candles and home fragrance products including scented candles, potpourri and environmental fragrance products, and markets a broad range of related candle accessories and decorative seasonal products. Net sales for the twelve months ended October 31, 2000 totaled $1.1 billion.