Soft Retail Market Impacts Libbey Q2 Sales

Tableware supplier Libbey reported a 3% decline in second quarter sales as growth in its global food service business was offset by softness within its retail and business-to-business channels.

Net sales for the three-month period ended June 30 were $207.9 million, down from sales of $214.1 million in the comparable quarter the previous year. Net income for the quarter was $8.7 million compared to net income of $14.4 million in the prior-year second quarter.

“Our global food service business continued to demonstrate strength with our 13th consecutive quarter of volume growth during the second quarter,” said William Foley, chairman and chief executive officer of Libbey. “Sales were down in our retail and business-to-business channels, consistent with trends we’ve been witnessing in recent quarters.”

Foley said the company is taking “decisive actions” to accelerate business improvements including the portfolio optimization project the company executed in the quarter which he feels will reduce the complexity in its product offering.

Net sales in the U.S. and Canada segment were $126.2 million, compared to $127.4 million in second quarter of 2015, a decrease of 1%. Food service sales grew 3.9% versus last year, but were offset by a reduction in net sales in the retail channel.

Latin America net sales were $40.6 million, compared to $44.6 million in second quarter 2015, a decrease of 9%.