Blyth Inc., posted net earnings of $1.2 million for the first quarter, a sharp decline from $11.7 million in the prior year.
The home fragrance and accessories direct marketer reported net sales of $270.4 million for the quarter ended April 30, an 8% decline from to $249.8 million last year.
The Greenwich, CT company attributed these results partly to a charge of $5.2 million during the quarter related to the write-off of its investment in RedEnvelope.
[Late last month, RedEnvelope Inc.—which had previously filed for chapter 11 bankruptcy protection—was acquired by Provide Commerce Inc in a court-supervised auction, for an undisclosed price, according to RedEnvelope].
In its catalog and internet segment, the Greenwich, CT firm posted net sales of $36.7 million for the quarter, a decrease from $39.9 million in the prior year. The company attributed this in part soft sales for certain of the Miles Kimball Co. brands, as well as the impact of a first quarter enterprise resource planning (ERP) system implementation that resulted in shipments being delayed into the second quarter. “The continued deterioration of the macroeconomic environment and its impact on consumer spending had an immediate and decisive impact on sales across Blyth’s U.S. businesses,” said CEO Robert B. Goergen, in a statement. Moreover, cost increases for commodities such as wax and increased paper, postage and freight expenses made achieving our first quarter profit targets very challenging.”
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