Blyth, Inc. said net sales for the second quarter ended July 31, 2011 increased approximately 17% to $185.5 million due to significant year-over-year growth at ViSalus Sciences, the company’s weight management/nutritional supplement/energy drink unit of which it owns 57.5%. Sales increased 13% on a local currency basis. International sales represented 44% of second quarter sales both this year and last year, the company said.

Operating profit for the second quarter was a loss of $2.6 million this year versus income of $4.3 million last year. During the quarter, the company incurred a $6.0 million charge for the ViSalus equity incentive plan. Excluding the impact of this charge, operating profit would have been $3.4 million this year versus $4.3 million last year. The decline in normalized operating profit was due to the impact of lower sales and profits at PartyLite, which were partially offset by improved sales and operating performance at ViSalus, the firm noted.

Net earnings from continuing operations for the second quarter were a loss of $1.8 million compared to net earnings of $1.1 million for the prior year. The company recorded a loss of $1.5 million during the second quarter this year versus a loss of $0.4 million last year on the sale and losses from discontinued operations of Midwest-CBK and Boca Java.

In the direct selling segment, second quarter net sales increased 23% to $135.2 million versus $110.2 million for the same period last year. Sales at ViSalus were $40.6 million in this year’s second quarter versus $6.5 million for the same period last year.

Total PartyLite sales for the quarter declined 6% to $93.7 million. PartyLite Europe sales increased 6% in U.S. dollars, which translated into a decline of 5% in local currency during the quarter, which management attributes to a challenging discretionary spending environment and lower European consumer confidence. PartyLite’s European active independent sales Consultants total more than 28,000 this year compared to more than 29,000 last year.

PartyLite U.S. sales declined 29% and active independent sales consultants totaled approximately 15,000 in the U.S. versus over 16,000 in last year’s second quarter. In PartyLite Canada, sales declined 23% in U.S. dollars during the quarter, which translated into a decline of 28% in local currency, with active independent sales Consultants totaling over 3,000 this year versus over 4,000 last year.

Second quarter operating profit in the Direct Selling segment was a loss of $1.5 million versus income of $5.3 million in the same period last year. Excluding the $6.0 million ViSalus equity incentive charge, the segment’s second quarter operating profit would have been $4.5 million this year versus $5.3 million last year. Strong sales and profit growth at ViSalus partially offset lower sales and profits at PartyLite versus last year.

In the Catalog & Internet segment, second quarter net sales increased 2% to $32.9 million versus $32.4 million last year, due to higher sales at the Miles Kimball Company. Second quarter operating loss in this segment was a loss of $0.8 million this year and last year. The operating loss reflects the segment’s seasonality.

In the Wholesale segment, second quarter net sales increased 14% to $17.4 million from $15.3 million last year driven by higher foodservice sales resulting from price advances taken to offset the impact of increased commodity costs versus last year. Second quarter operating loss in the Wholesale segment was $0.3 million this year versus a loss of $0.2 million last year.

Commenting on the company’s financial results, Robert B. Goergen, Blyth’s chairman of the Board and CEO, said, “We are very pleased with the performance of ViSalus, which accelerated during the second quarter. The simple and compelling message of starting to transform your health and life with the Body By Vi 90 Day Challenge has resonated with consumers. Effective products that taste good, combined with a great earning opportunity for ViSalus distributors, have resulted in a winning formula that is being replicated across the U.S.”

Goergen continued, “We are also pleased with management’s progress implementing new programs at PartyLite U.S. While it is still early, our new programs have begun to succeed in building income for independent sales Consultants and Leaders, which we believe will ultimately stabilize the U.S. Consultant base and PartyLite’s sales. In Europe, we are encouraged by PartyLite’s steady sales and earnings performance, and we believe that the small sales decline this quarter relates to lower consumer confidence driven by the European Union’s debt dilemma.”