A catalog sales shortfall apparently played at least a small part in causing flat second-quarter revenue and a decline in net earnings for Blyth Inc.
The Greenwich, CT-based company reported revenue of $292.2 million, a 1% increase over the same period last year. Net earnings fell to $4.2 million, compared with $9.4 million in 2004.
The firm’s catalog and Internet sales fell by 2% to $34.6 million. This resulted in an operating loss of $2.6 million for the segment, compared with $1.8 million last year.
Blyth attributed this to disappointing sales by its Walter Drake catalogs.
“Though segment results were below plan, we believe that most of the operational issues related to the integration of Miles Kimball and Walter Drake are behind us,” said CEO Robert B. Goergen, in a statement. “Sales of the Miles Kimball brand are strong, and we are seeing early results in the latest Walter Drake catalogs that indicate a positive reception to a new merchandising strategy.”
In contrast, the firm’s wholesale segment experienced a 13% sales increase to $116.3 million.
Meanwhile, the firm’s direct sales unit experienced a net sales decline of 6% to $141.2 million, the result of a decline in U.S. sales for its Partylite business. The company attributed the overall fall in its operating margin to this, and to the seasonality of newly acquired European businesses.
Net sales for the first half totaled $647.9 million, compared with $648 million during the same period last year. Net earnings fell to $14.1 million from last year’s $27.1 million.
Blyth Co. is a marketer of home fragrance and décor products.
