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First Quarter Down for Blyth, Williams-Sonoma

By Staff -- Gifts and Dec, 5/31/2007 12:29:00 PM

Greenwich, CT — The market for home furnishings continued to be challenging, not only to independents, but to major brands in the first quarter of 2007. Greenwich, CT-based home fragrance and decor vendor Blyth Inc.’s net sales for the first quarter declined approximately 3 percent to $270.4 million, compared to $280.2 million for the prior year period.

In the wholesale segment, which includes major gift brands Colonial Candle, CBK and Seasons of Cannon Falls, net sales declined approximately 11 percent to $70.2 million versus $78.8 million for the same period last year, due to overall soft sales and a planned sales reduction in the mass candle business, which Blyth recently sold. First quarter operating loss in the wholesale segment was $8.1 million compared to last year's loss of $2.7 million, something Blyth attributed to sales volume declines, a mix shift towards close out home decor products and higher commodity costs. Slower sales in wholesale and the company’s direct-to-consumer PartyLite U.S. division were offset by strong performance in PartyLite’s international markets, Catalog & Internet sales. Blyth also revised its guidance for fiscal year 2008 downward from $1.07–$1.17 earnings per share to $1.02–$1.12, to account for the costs associated with selling its mass home fragrance business. Meanwhile, San Francisco-based Williams-Sonoma Inc., owner of Pottery Barn, West Elm and the newly launched Williams-Sonoma Home, as well as the gourmet housewares retail brand, reported that its first quarter earnings fell 21 percent on 2.7 percent higher revenue. The company cut its second quarter earnings estimate by 2 cents to 14–18 cents per share, and affirmed its outlook for the year as an adjusted profit of $1.76 to $1.84 per share.

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