GREENWICH, Conn., Nov. 6, 2012 /PRNewswire-FirstCall/ -- Blyth, Inc. (NYSE: BTH), a direct to consumer company and leading designer and marketer of candles, accessories for the home, and health and wellness products sold through the direct selling and direct marketing channels, today commented on its outlook for the year ending December 31, 2012. Reported earnings per share is expected to be $2.28 - $2.43 for the year ending December 31, 2012 compared to prior guidance of reported earnings per share of $2.47 - $2.62.
Robert B. Goergen, Blyth's Chairman of the Board and Chief Executive Officer, commented, "Our updated guidance for 2012 reflects lower sales and profits than previously anticipated, due in large part to the difficult global macroeconomic environment which continues to make forecasting the demand for discretionary consumer products challenging. Reduced consumer discretionary spending in North America and Europe is challenging for all our business units, particularly PartyLite Europe and, to a lesser extent, PartyLite North America. In addition, now that ViSalus has grown to be a substantial size business, we understand better the seasonality of weight management products, which are stronger in the first half of the year due to the post-holiday and pre-summer focus on weight management. As such, we have moderated our second half sales and earnings projections, which represent strong double-digit growth versus the prior year."
Ryan Blair, CEO of ViSalus noted further that, "Our belief in the North American growth opportunity was reinforced by the record Promoter attendance at last weekend's National Success Training in St. Louis. Moreover, we expect to enter Europe, our first market outside North America, in the first half of 2013. We believe international expansion offers a significant growth opportunity for ViSalus since most larger multi-level marketing companies derive at least 75% of their sales outside North America. Moreover, we believe the European marketplace is an opportune environment for ViSalus as our European neighbors are equally challenged by the obesity epidemic that is targeted so effectively by both the Body by Vi™ 90 Day Challenge and ViSalus' product offering."
Mr. Blair added that he would be prepared to outline the specifics of ViSalus' international expansion plan in early 2013 and that "the ViSalus Founders remain committed to working with our colleagues at Blyth to build ViSalus into a global household brand. We have successfully recruited a world-class management team that is equally committed to the long-term relationship with Blyth that will facilitate accomplishing this vision. Moreover, as significant Blyth shareholders, we look forward to formalizing the extension of our agreements with Blyth that allow us to participate in the growth and earnings potential of ViSalus while affording Blyth the opportunity to share in the cash flow generated by this rapidly growing and profitable business."