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Blyth, Inc. commented on its updated outlook for fiscal year 2009. Normalized Earnings Per Share are expected to be in the range of $1.35 to $1.40 for fiscal year 2009 versus prior guidance of $1.45 to $1.50.
"Our updated guidance for fiscal year 2009 reflects a challenging macroeconomic environment and the battle for consumer discretionary dollars in light of the impact of inflation on American households and businesses," said Robert B. Goergen, chairman of the board and CEO, Blyth. "Rigorous cost management and appropriately aggressive promotional investments are key tactical initiatives for the second half of the year. Concurrently, focused new product development and supply chain initiatives are underway for fiscal year 2010 to ensure that we are positioned to capitalize on a longer-term improvement in consumer confidence."
Reported Earnings Per Share are anticipated to be $1.16 - $1.21 per share versus prior guidance of $1.26 - $1.31 per share. Blyth's current and prior fiscal year 2009 reported Earnings Per Share estimates reflect a charge of $5.2 million (pre-tax and after tax), or $0.14 per share, related to the write off of the Company's investment in RedEnvelope, as well as anticipated unusual charges of approximately $0.05 per share related to the North American Wholesale home fragrance business, which is being realigned following the divestiture of Blyth's mass channel candle business in fiscal 2008.
Cash flow from operations of approximately $80 million for the full fiscal year is anticipated versus prior guidance of $90 million. Capital spending of approximately $10 million is also expected for fiscal year 2009.