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PartyLite’s Sales Slide 8% in Third Quarter

But Blyth CEO says new programs have begun to show progress.

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By: TOM BRANNA

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Blyth, Inc., the multi-channel designer and marketer of home fragrance and home decor, as well as health and wellness products, today reported that net sales for the third quarter ended October 31, 2011 increased approximately 33% to $220.2 million versus $165.4 million for the prior year period primarily due to significant year-over-year sales growth at ViSalus Sciences. International sales represented 40% of third quarter sales this year compared to 43% last year.


Operating profit for the third quarter was $0.8 million this year versus $0.4 million last year.During this year’s third quarter, the Company incurred a $7.3 million pre-tax ViSalus equity incentive charge versus a $1.1 million pre-tax charge last year.Excluding the impact of these charges, operating profit would have been $8.1 million this year versus $1.5 million last year.

Total PartyLite sales for the quarter declined 8% to $101.6 million.PartyLite’s European sales declined 3% in U.S. dollars, translating into a decline of 11% in local currency during the quarter, which management attributes to changes in European consumer purchasing habits resulting from the European debt crisis. PartyLite’s European active independent sales consultants total over 27,000 this year versus over 28,000 last year.

PartyLite’s US sales declined 18%. However, on a positive note, active independent sales consultants totaled approximately 19,000 in the U.S. this year and last year.In PartyLite Canada, sales declined 7% in U.S. dollars during the quarter, which translated into a decline of 9% in local currency, with active independent sales Consultants totaling over 4,000 this year versus over 5,000 last year.

According to Robert B. Goergen, Blyth’s chairman and CEO, in the US,
“PartyLite management’s implementation of new programs to attract and retain consultants, leaders, hosts and guests has begun to show progress, with marked improvement in active independent Consultants, which are approximately equal to last year’s third quarter, representing real improvement versus recent trends.”

“PartyLite Europe is a key strength for Blyth,” Mr. Goergen continued, “and we continue to expect strong sales and profits from this important market.Nevertheless, the current debt crisis has impacted consumer buying patterns, resulting in a challenging third quarter in Europe.”

In the Catalog & Internet segment, third quarter net sales declined 6% to $31.8 million versus $33.8 million last year, due to a planned reduction in catalog circulation at the Miles Kimball Company and lower sales of seasonal products versus the prior year period.

In the Wholesale segment, third quarter net sales increased 13% to $16.2 million from $14.4 million last year driven by higher foodservice sales resulting from price advances taken to offset the impact of increased commodity costs versus last year.

In other news, Blyth, Inc. is changing its fiscal year end from January 31 to December 31. This change reflects the Company’s focus on direct-to-consumer businesses, which have a December year end, and the strategic divestiture of most of the company’s wholesale businesses, which had a January year end, the firm said.

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