Blyth, Inc. (BTH), a designer and marketer of home fragrance, home decor, and household convenience products, reported Friday a fourth-quarter net profit, compared to a loss in the prior year due to heavy charges. Further, the company provided outlook for 2010 and revealed its European geographic plans.
For the fourth quarter, the Greenwich, Connecticut-based company reported a net profit of $9.7 million, or $1.08 a share, compared to a net loss of $10.4 million, or $1.12 a share, in the previous year. On average, two analysts polled by Thomson Reuters expected the company to earn $1.86 per share. Analysts' estimates typically exclude special items.
Goodwill and other intangibles impairment charges for the latest quarter was $2.76 million compared to charges of $42.67 million last year. Blyth HomeScents International's post-tax restructuring charges for the quarter were $280 thousand, compared to charge of $3.42 million in the year-ago period. Excluding charges, net earnings dropped to $12.70 million, or $1.42 a share, from $35.67 million, or $3.84 a share, in the prior year quarter.
Net Sales for the quarter decreased 16% to $313.4 million from $373.8 million for the same period last year, reflecting a flagging-economy driven decline in sales across all segments, namely direct selling, PartyLite, catalog & Internet, and wholesale segments. Also, foreign exchange created a 5% negative impact on the quarterly sales of fiscal 2009.
For the full year, the company reported a net loss of $19.1 million, or $2.13 a share, compared to income of $11.1 million, or $1.14 a share, last fiscal. Fiscal 2009 results were hurt by higher foreign exchange related costs and lower sales. Excluding special items, earnings for fiscal 2009 slipped to $3.28 per share from $6.67 per share last year.
Net Sales for the year declined 10% to $1.05 billion from $1.16 billion a year ago.
Looking ahead, Blyth expects to report earnings in the range of $3.00 to $3.30 per share for fiscal year 2010.
Robert Goergen, Blyth's chief executive, said, "While setting targets has become increasingly challenging in the current macroeconomic environment, we do expect profit improvement in several of our business units for fiscal year 2010 as a result of various restructuring projects initiated last year."
Commenting on the company's direct selling business, Goergen said that Blyth would continue investing in mature markets such as the U.S. and also revealed its plans for further European expansion in 2010. The company is optimistic that certain parts of Eastern Europe offer very good opportunity for PartyLite.
Further, Blyth forecast a Capital budget of about $6 million for fiscal 2010.
BTH is currently trading at $30.49, up $1.74 or 6.05%, on the NYSE.
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