Blyth Snuffs European Wholesale Business
By Staff -- Gifts & Decorative Accessories, 9/1/2006 1:25:00 PM
Greenwich, CT — Blyth Inc., a candle and decor vendor, discontinued its European wholesale businesses (Edelman, Euro-Decor, Gies and Colony) during the second quarter ended July 31. The company reported loss of $68.6 million, or $1.72 per share, during the quarter, primarily because of impairment charges related to Gies and Colony. Gies was sold after the end of the quarter.
The company also reported a second quarter operating loss of $27.7 million, compared to profit of $16.9 million during the same year-ago period. The loss includes a goodwill impairment charge of $36.8 million from a revaluation of Blyth's North American wholesale businesses. In Blyth's wholesale segment, which includes gift brands Colonial Candle, CBK, and Seasons of Cannon Falls, second quarter net sales were $80.2 million, versus $80.5 million last year. Lower sales of seasonal decorations and candles were partially offset by growth in home decor and Sterno businesses. In spite of the wholesale falloff, Blyth’s net sales for the quarter increased approximately 2 percent to $262.6 million compared with $256.3 million a year earlier, due to higher sales in the company's direct to consumer businesses. Catalog and Internet direct-to-consumer second quarter net sales increased 11 percent to $38.4 million, compared with the same year-ago period. This segment experienced an operating loss of $2.3 million, compared to a loss of $2.6 million last year. International sales represented 27 percent of total sales, versus 23 percent last year, reflecting strong growth in PartyLite international direct candle sales. PartyLite Canada grew 18 percent and PartyLite Europe's sales increased approximately 20 percent. However, PartyLite U.S. sales were down 12 percent. Chairman and CEO Robert Goergen said, "Blyth reported higher second quarter sales primarily due to continued strong growth in PartyLite's international markets."
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