Libbey Inc. reported soft retail sales for its second quarter as it continued to gear up strategic pricing and product initiatives for the second half of the year.
The company’s net sales for the quarter ended June 30 were $197.5 million, down 5% versus the prior year. In the quarter, the company reported a net loss of $0.8 million, down $9.5 million versus the prior year.
Libbey said that its net sales in the U.S. and Canada segment were lower due to softer sales in the retail and business-to-business channels, which were down approximately 10% and 2%, respectively. U.S. and Canada food service net sales were flat versus prior year, despite volume increases in the channel. Net sales in Latin America, the EMEA segment, and China also saw a decrease.
“Second quarter sales results were in line with our expectations, as an intensely competitive pricing environment continues to linger on a global basis,” said William Foley, Libbey chairman and CEO. “We remain confident that we are taking the appropriate measures to improve the long-term performance of our business. We’re seeing indications that certain pricing initiatives we implemented last quarter are taking hold, and that our new product initiatives are beginning to gain traction in the marketplace. We’re also very pleased that our new e-commerce platform launched on time and on budget in mid-July.”
Foley added, “As we look to the second half of the year, we believe that the strategic initiatives we’ve been focused on over the last year will start to contribute and alleviate some of the short-term competitive pressures in our market. We look forward to a better second half compared to the prior-year period, supported by improved profitability in EMEA as a result of our furnace realignment activities, improved operating performance and cost reductions, and sales contributions from new products and e-commerce.”