Blyth Q1 Wholesale Sales Drop

GDA Staff -- Gifts and Dec, 6/4/2010 11:59:14 AM

Greenwich, CT — Blyth Inc., parent company of major gift brand Midwest-CBK, reported that its net sales for the first quarter ended April 30 declined about 6 percent, to $201.5 million, compared to $214.7 million for the prior year period.

Operating profit, however, was up, reaching $7.1 million for this year's first quarter versus $5.8 million for last year's. The company attributed the improvement to more tightly managed promotional expense at PartyLite U.S., cost reductions at Midwest-CBK following the merger of these businesses, higher sales and improved gross margin at the Miles Kimball Company, and foreign exchange.

In the wholesale segment, which includes the company's gift businesses, first quarter net sales declined 17 percent to $27.9 million, versus $33.8 million last year, driven by lower sales of home decor products, premium candles and foodservice products. First quarter operating loss in the wholesale segment was $3.7 million, compared to last year's operating loss of $6.2 million, due to cost savings resulting from the merger of Midwest-CBK and rigorous expense management.

Blyth also reduced its earnings forecast for fiscal year 2011: earnings per share are now expected to be $2.90-$3.20, versus prior guidance of $3.20-$3.50.