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 UNITED STATES

| x      | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  |
|--------|----------------------------------------------------------------------------------------------------|
|   |                                                                                               |
|   | For the quarterly period ended October 31, 2010                                                    |
|   |                                                                                               |
| or     |
|   |                                                                                               |
| o      | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |

|   DELAWARE                                                                                                                         | 36-2984916                                          |
|----------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------|
|              (State or other jurisdiction of incorporation or organization) |    (IRS Employer Identification No.) |

| One East Weaver Street, Greenwich, Connecticut 06831 |
|------------------------------------------------------|
| (Address of principal executive offices)             | (Zip Code) |

| Large accelerated filer o Non-accelerated filer o | Accelerated filer x Smaller reporting company o |
|--------------------------------------------------------|------------------------------------------------------|

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|                                                                                                                                                                                                                             |                                                                                  | Page   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                             |                                                                                  |   |
| Part I.   Financial Information                                                                                                                                                                                   |                                                                                  |
|                                                                                                                                                                                                                             |                                                                                  |   |
|                                     Item 1.       | Financial Statements (Unaudited):                                                     |   |
|                                                                                                                                                                                                                             |                                                                                  |   |
|                                                                                                                                                                                                                             | Consolidated Balance Sheets                                                           | 3      |
|                                                                                                                                                                                                                             |                                                                                  |   |
|                                                                                                                                                                                                                             | Consolidated Statements of Earnings (Loss)                                            | 4      |
|                                                                                                                                                                                                                             |                                                                                  |   |
|                                                                                                                                                                                                                             | Consolidated Statements of Stockholders' Equity                                       | 5      |
|                                                                                                                                                                                                                             |                                                                                  |   |
|                                                                                                                                                                                                                             | Consolidated Statements of Cash Flows                                                 | 6      |
|                                                                                                                                                                                                                             |                                                                                  |   |
|                                                                                                                                                                                                                             | Notes to Consolidated Financial Statements                                            | 7-22   |
|                                                                                                                                                                                                                             |                                                                                  |   |
|                                     Item 2.       | Management's Discussion and Analysis of Financial Condition and Results of Operations | 23-29  |
|                                                                                                                                                                                                                             |                                                                                  |   |
|                                     Item 3.       | Quantitative and Qualitative Disclosures About Market Risk                            | 30-31  |
|                                                                                                                                                                                                                             |                                                                                  |   |
|                                     Item 4.       | Controls and Procedures                                                               | 32     |
|                                                                                                                                                                                                                             |                                                                                  |   |
| Part II.   Other Information                                                                                                                                                                                      |                                                                                  |
|                                                                                                                                                                                                                             |                                                                                  |   |
|                                     Item 1.       | Legal Proceedings                                                                     | 33     |
|                                                                                                                                                                                                                             |                                                                                  |   |
|                                     Item 1A. | Risk Factors                                                                          | 33     |
|                                                                                                                                                                                                                             |                                                                                  |   |
|                                     Item 2.  | Unregistered Sales of Equity Securities and Use of Proceeds                           | 34     |
|                                                                                                                                                                                                                             |                                                                                  |   |
|                                     Item 3.  | Defaults upon Senior Securities                                                       | 34     |
|                                                                                                                                                                                                                             |                                                                                  |   |
|                                     Item 4.  | Removed and Reserved                                                                  | 35     |
|                                                                                                                                                                                                                             |                                                                                  |   |
|                                     Item 5.  | Other Information                                                                     | 35     |
|                                                                                                                                                                                                                             |                                                                                  |   |
|                                     Item 6.  | Exhibits                                                                              | 35     |
|                                                                                                                                                                                                                             |                                                                                  |   |
|                                                                                                                                                                                                                             |                                                                                  |   |
|                                   Signatures                     |                                                                                  | 36     |
|                                                                                                                                                                                                                             |                                                                                  |   |

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| Part I.   FINANCIAL  INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |              |     |   |        |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|----------|--------|-------------|--------|
| Item I.   FINANCIAL STATEMENTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |              |     |   |        |   |
| BLYTH, INC. AND SUBSIDIARIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |
| CONSOLIDATED BALANCE SHEETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
|                                                                                                                 |   |              |     |   |        |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | October 31,       |     |   | January 31, |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 2010              |     |   | 2010        |   |
| (In thousands, except share and per share data)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |  (Unaudited) |     |   |        |   |
| ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |              |     |   |        |   |
| Current assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |              |     |   |        |   |
| Cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $                 | 116,967  |   |        | $      | 207,394 |   |
| Short-term investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |              | -        |   |        |   | 5,000 |   |
|  Accounts receivable, less allowance for doubtful receivables of $1,965 and $2,243, respectively                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |              | 58,714   |   |        |   | 18,694 |   |
| Inventories                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |              | 133,065  |   |        |   | 102,203 |   |
| Prepaid and other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |              | 28,105   |   |        |   | 23,997 |   |
| Deferred income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |              | 6,032    |   |        |   | 6,769 |   |
|        Total current assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |              | 342,883  |   |        |   | 364,057 |   |
| Property, plant and equipment, at cost: Less accumulated depreciation of $208,190 and $202,808, respectively                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |              | 103,733  |   |        |   | 107,987 |   |
| Other assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |              |     |   |        |   |   |   |
| Investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |              | 17,139   |   |        |   | 19,072 |   |
| Goodwill                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |              | 2,298    |   |        |   | 2,298 |   |
| Other intangible assets, net of accumulated amortization of $13,071 and $12,254, respectively                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |              | 11,359   |   |        |   | 12,176 |   |
| Other assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |              | 14,200   |   |        |   | 17,403 |   |
|        Total other assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |              | 44,996   |   |        |   | 50,949 |   |
|        Total assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                 | 491,612  |   |        | $      | 522,993 |   |
| LIABILITIES AND EQUITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |              |     |   |        |   |   |   |
| Current liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |              |     |   |        |   |   |   |
| Current maturities of long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $                 | 1,301    |   |        | $      | 582 |   |
| Accounts payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |              | 50,333   |   |        |   | 57,338 |   |
| Accrued expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |              | 66,316   |   |        |   | 60,895 |   |
| Dividends payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |              | 827      |   |        |   | 8,826 |   |
| Income taxes payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |              | 1,026    |   |        |   | 4,913 |   |
|        Total current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |              | 119,803  |   |        |   | 132,554 |   |
| Deferred income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |              | 1,506    |   |        |   | 686 |   |
| Long-term debt, less current maturities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |              | 109,841  |   |        |   | 109,962 |   |
| Other liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |              | 24,350   |   |        |   | 24,984 |   |
| Commitments and contingencies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |              | -        |   |        |   | - |   |
| Redeemable noncontrolling interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |              | (2,547   | )      |        |   | (1,470 | ) |
| Stockholders' equity:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |              |     |   |        |   |   |   |
| Preferred stock - authorized 10,000,000 shares of $0.01 par value; no shares issued                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |              | -        |   |        |   | - |   |
| Common stock - authorized 50,000,000 shares of $0.02 par value; issued 12,789,925 shares and 12,765,919 shares, respectively                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |              | 256      |   |        |   | 255 |   |
| Additional contributed capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |              | 146,130  |   |        |   | 144,233 |   |
| Retained earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |              | 500,640  |   |        |   | 494,524 |   |
| Accumulated other comprehensive income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |              | 15,759   |   |        |   | 20,591 |   |
| Treasury stock, at cost,  4,560,528 and 3,972,112 shares, respectively                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |              | (424,189 | )      |        |   | (403,329 | ) |
|        Total stockholders' equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |              | 238,596  |   |        |   | 256,274 |   |
| Noncontrolling interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |              | 63       |   |        |   | 3 |   |
|        Total  equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |              | 238,659  |   |        |   | 256,277 |   |
|        Total liabilities and equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                 | 491,612  |   |        | $      | 522,993 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |              |     |   |        |   |   |   |
| The accompanying notes are an integral part of these financial statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |

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| BLYTH, INC. AND SUBSIDIARIES                                               |   |
|----------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)                                 |   |
| (Unaudited)                                                                |   |
|                                                                       |   | Three months ended October 31, |   |   | Nine months ended October 31, |   |
| (In thousands, except per share data)                                      |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Net sales                                                                  |   | $ | 215,472 |   |   | $ | 221,578 |   |   | $ | 597,653 |   |   | $ | 635,656 |   |
| Cost of goods sold                                                         |   |   | 104,779 |   |   |   | 106,545 |   |   |   | 271,715 |   |   |   | 296,902 |   |
|     Gross profit                                       |   |   | 110,693 |   |   |   | 115,033 |   |   |   | 325,938 |   |   |   | 338,754 |   |
| Selling                                                                    |   |   | 76,362 |   |   |   | 83,557 |   |   |   | 223,781 |   |   |   | 245,707 |   |
| Administrative and other                                                   |   |   | 28,591 |   |   |   | 28,491 |   |   |   | 85,220 |   |   |   | 82,425 |   |
| Goodwill and other intangibles impairment                                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 16,498 |   |
|     Total operating expense                            |   |   | 104,953 |   |   |   | 112,048 |   |   |   | 309,001 |   |   |   | 344,630 |   |
|     Operating profit (loss)                            |   |   | 5,740 |   |   |   | 2,985 |   |   |   | 16,937 |   |   |   | (5,876 | ) |
| Other expense (income):                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Interest expense                             |   |   | 1,794 |   |   |   | 1,905 |   |   |   | 5,350 |   |   |   | 6,140 |   |
|      Interest income                              |   |   | (223 | ) |   |   | (206 | ) |   |   | (742 | ) |   |   | (1,092 | ) |
|      Foreign exchange and other                   |   |   | 137 |   |   |   | 1,663 |   |   |   | 674 |   |   |   | 981 |   |
|      Total other expense                          |   |   | 1,708 |   |   |   | 3,362 |   |   |   | 5,282 |   |   |   | 6,029 |   |
|      Earnings (loss) before income taxes          |   |   | 4,032 |   |   |   | (377 | ) |   |   | 11,655 |   |   |   | (11,905 | ) |
| Income tax expense                                                         |   |   | 1,910 |   |   |   | 1,062 |   |   |   | 4,735 |   |   |   | 2,940 |   |
|      Net earnings (loss)                          |   |   | 2,122 |   |   |   | (1,439 | ) |   |   | 6,920 |   |   |   | (14,845 | ) |
| Less: Net loss attributable to the noncontrolling interests                |   |   | (458 | ) |   |   | (469 | ) |   |   | (908 | ) |   |   | (748 | ) |
|     Net earnings (loss) attributable to Blyth, Inc.    |   | $ | 2,580 |   |   | $ | (970 | ) |   | $  | 7,828 |   |   | $ | (14,097 | ) |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic:                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net earnings (loss) attributable per Blyth, Inc. common share              |   | $ | 0.31 |   |   | $ | (0.11 | ) |   | $ | 0.92 |   |   | $ | (1.58 | ) |
| Weighted average number of shares outstanding                              |   |   | 8,267 |   |   |   | 8,930 |   |   |   | 8,527 |   |   |   | 8,922 |   |
| Diluted:                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net earnings (loss) attributable per Blyth, Inc. common share              |   | $ | 0.31 |   |   | $ | (0.11 | ) |   | $ | 0.91 |   |   | $ | (1.58 | ) |
| Weighted average number of shares outstanding                              |   |   | 8,313 |   |   |   | 8,930 |   |   |   | 8,572 |   |   |   | 8,922 |   |
| Cash dividend declared per share                                           |   | $ | 0.10 |   |   | $ | 0.10 |   |   | $ | 0.20 |   |   | $ | 0.20 |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of these financial statements. |   |

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| BLYTH, INC. AND SUBSIDIARIES                                                                                                                  |   |    |                       |   |   |        |    |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|----------------------------|--------|--------|-------------|---------|
| CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY                                                                                               |   |    |                       |   |   |        |    |
| (Unaudited)                                                                                                                                   |   |    |                       |   |   |        |    |
| (In thousands)                                                                                                                                |   |    |                       |   |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                          |   |    | Blyth, Inc.'s Stockholders |   |   |        |    |   |   |   |   |   |   |   |   |   |
|                                                                                                                                          |   |    |                       |   |   |        |    |   |   |   |   | Accumulated |   |   |   |   |   |   |   |   |   |   |   | Redeemable |   |   |   |   |
|                                                                                                                                          |   |    |                       |   |   | Additional  |    |   |   |   |   | Other |   |   |   |   |   |   |   |   |   |   |   | Noncontrolling |   |   |   |   |
|                                                                                                                                          |   |    | Common                     |   |   | Contributed |    |   | Retained |   |   | Comprehensive |   |   | Treasury |   |   | Noncontrolling |   |   | Total |   |   | Interest |   |   | Comprehensive |   |
|                                                                                                                                          |   |    | Stock                      |   |   | Capital     |    |   | Earnings |   |   | Income (Loss) |   |   | Stock |   |   | Interest |   |   | Equity |   |   | (Temporary Equity) |   |   | Income (Loss) |   |
| For the nine months ended October 31, 2009:                                                                                                   |   |    |                       |   |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, February 1, 2009                                                                                                                     |   |  $ | 255                        |   |   | $           | 141,307 |   |   | $ | 486,548 |   |   | $ | 19,366 |   |   | $ | (398,978 | ) |   | $ | - |   |   | $ | 248,498 |   |   | $ | 893 |   |   |   |   |
| Net earnings (loss) for the period                                                                                                            |   |    |                       |   |   |        |    |   |   |   | (14,097 | ) |   |   |   |   |   |   |   |   |   |   | 155 |   |   |   | (13,942 | ) |   |   | (903 | ) |   | $ | (14,845 | ) |
| Distribution to noncontrolling interest                                                                                                       |   |    |                       |   |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (161 | ) |   |   | (161 | ) |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustments  (net of tax benefit of $2,050)                                                            |   |    |                       |   |   |        |    |   |   |   |   | 7,035 |   |   |   |   |   |   |   |   |   |   |   | 7,035 |   |   |   |   |   |   |   | 7,035 |   |
| Net unrealized gain on certain investments (net of tax liability of  $226)                                                          |   |    |                       |   |   |        |    |   |   |   |   |   |   | 367 |   |   |   |   |   |   |   |   |   |   |   | 367 |   |   |   |   |   |   |   | 367 |   |
| Realized loss on permanent impairment of investment (net of tax benefit of $197)                                                              |   |    |                       |   |   |        |    | 322 |   |   |   |   |   |   |   |   |   |   |   | 322 |   |   |   |   |   |   |   | 322 |   |
| Realized gain on pension termination (net of tax of $749)                                                                                     |   |    |                       |   |   |        |    |   |   |   |   |   |   |   | (1,153 | ) |   |   |   |   |   |   |   |   |   |   | (1,153 | ) |   |   |   |   |   |   | (1,153 | ) |
| Net unrealized loss on cash flow hedging instruments (net of tax benefit of $309)                                                             |   |    |                       |   |   |        |    |   |   |   |   |   |   |   | (569 | ) |   |   |   |   |   |   |   |   |   |   | (569 | ) |   |   |   |   |   |   | (569 | ) |
|       Comprehensive loss                                                                                        |   |    |                       |   |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (8,843 | ) |
| Comprehensive loss attributable to the noncontrolling interests                                                                          |   |    |                       |   |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 748 |   |
|       Comprehensive loss attributable to Blyth, Inc.                                                            |   |    |                       |   |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | (8,095 | ) |
| Stock-based compensation                                                                                                                      |   |    |                       |   |   | 2,592       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 2,592 |   |   |   |   |   |   |   |   |   |
| Dividends declared ($.20 per share)                                                                                                           |   |    |                       |   |   |        |    |   |   |   | (1,786 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,786 | ) |   |   |   |   |   |   |   |   |
| Reversal of accretion of redeemable noncontrolling interest                                                                                   |   |    |                       |   |   |        |    |   |   |   | 893 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 893 |   |   |   | (893 | ) |   |   |   |   |
|  Treasury stock purchases                                                                                                                |   |    |                       |   |   |        |    |   |   |   |   |   |   |   |   |   |   |   | (901 | ) |   |   |   |   |   |   | (901 | ) |   |   |   |   |   |   |   |   |
|  Balance, October 31, 2009                                                                                                               |   |  $ | 255                        |   |   | $           | 143,899 |   |   | $ | 471,558 |   |   | $ | 25,368 |   |   | $ | (399,879 | ) |   | $ | (6 | ) |   | $ | 241,195 |   |   | $ | (903 | ) |   |   |   |   |
|                                                                                                                                          |   |    |                       |   |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| For the nine months ended October 31, 2010:                                                                                                   |   |    |                       |   |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, February 1, 2010                                                                                                                     |   |  $ | 255                        |   |   | $           | 144,233 |   |   | $ | 494,524 |   |   | $ | 20,591 |   |   | $ | (403,329 | ) |   | $ | 3 |   |   |   | 256,277 |   |   | $ | (1,470 | ) |   |   |   |   |
| Net earnings (loss) for the period                                                                                                            |   |    |                       |   |   |        |    |   |   |   | 7,828 |   |   |   |   |   |   |   |   |   |   |   | 169 |   |   |   | 7,997 |   |   |   | (1,077 | ) |   | $ | 6,920 |   |
| Distribution to noncontrolling interest                                                                                                       |   |    |                       |   |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (109 | ) |   |   | (109 | ) |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustments (net of tax liability of  $3,742)                                                          |   |    |                       |   |   |        |    |   |   |   |   |   |   |   | (4,544 | ) |   |   |   |   |   |   |   |   |   |   | (4,544 | ) |   |   |   |   |   |   | (4,544 | ) |
|  Net unrealized gain on certain investments (net of tax liability of  $145)                                                    |   |    |                       |   |   |        |    |   |   |   |   |   |   |   | 364 |   |   |   |   |   |   |   |   |   |   |   | 364 |   |   |   |   |   |   |   | 364 |   |
| Net unrealized gain on net investment hedging instruments (net of tax liability of $29)                                                  |   |    |                       |   |   |        |    |   |   |   |   |   |   | 54 |   |   |   |   |   |   |   |   |   |   |   | 54 |   |   |   |   |   |   |   | 54 |   |
| Net unrealized loss on cash flow hedging instruments (net of tax benefit of $381)                                                             |   |    |                       |   |   |        |    |   |   |   |   |   |   |   | (706 | ) |   |   |   |   |   |   |   |   |   |   | (706 | ) |   |   |   |   |   |   | (706 | ) |
|       Comprehensive Income                                                                                      |   |    |                       |   |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 2,088 |   |
| Comprehensive loss attributableto the noncontrolling interests                                                                                |   |    |                       |   |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 908 |   |
|       Comprehensive Income attributable to Blyth, Inc.                                                          |   |    |                       |   |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 2,996 |   |
| Common stock issued in connection with long-term incentive plan                                                                               |   | 1       |                       |   |   | (1          | )       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |   |   |   |   |   |   |   |   |   |
| Stock-based compensation                                                                                                                      |   |    |                       |   |   | 1,898       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1,898 |   |   |   |   |   |   |   |   |   |
| Dividends declared ($0.20 per share)                                                                                                          |   |    |                       |   |   |        |    |   |   |   | (1,712 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,712 | ) |   |   |   |   |   |   |   |   |
| Treasury stock purchases 1                                                                                                                    |   |    |                       |   |   |        |    |   |   |   |   |   |   |   |   |   |   |   | (20,860 | ) |   |   |   |   |   |   | (20,860 | ) |   |   |   |   |   |   |   |   |
| Balance, October 31, 2010                                                                                                                     |   |  $ | 256                        |   |   | $           | 146,130 |   |   | $ | 500,640 |   |   | $ | 15,759 |   |   | $ | (424,189 | ) |   | $ | 63 |   |   | $ | 238,659 |   |   | $ | (2,547 | ) |   |   |   |   |
|  1) This includes shares withheld in order to satisfy employee withholding taxes upon the distribution of vested restricted stock units. |   |    |
|                                                                                                                                          |   |    |                       |   |   |        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of these financial statements.                                                                    |   |

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| BLYTH, INC. AND SUBSIDIARIES                                                                                                                                          |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                                                                                 |   |
| (Unaudited)                                                                                                                                                           |   |
| Nine months ended October 31 (In thousands)                                                                                                                           |   | 2010 |   |   | 2009 |   |
| Cash flows from operating activities:                                                                                                                                 |   |   |   |   |   |   |
| Net earnings (loss)                                                                                                                                                   |   | $ | 6,920 |   |   | $ | (14,845 | ) |
|      Adjustments to reconcile net earnings to net cash                                                                                       |   |   |   |   |   |   |   |   |
|       provided by (used in) operating activities:                                                                                       |   |   |   |   |   |   |   |   |
|              Depreciation and amortization                                                           |   |   | 10,211 |   |   |   | 12,254 |   |
|              Gain on sale of assets                                                                  |   |   | (318 | ) |   |   | (863 | ) |
|              Stock-based compensation expense                                                        |   |   | 1,898 |   |   |   | 2,362 |   |
|              Deferred income taxes                                                                   |   |   | 4,232 |   |   |   | (2,651 | ) |
|              Gain on pension plan termination                                                        |   |   | - |   |   |   | (1,902 | ) |
|              Goodwill and other intangibles impairment                                               |   |   | - |   |   |   | 16,498 |   |
|              Impairment of assets                                                                    |   |   | 500 |   |   |   | 1,226 |   |
|              Other                                                                                   |   |   | 20 |   |   |   | 75 |   |
| Changes in operating assets and liabilities, net of efect of business acquisitions and divestitures:                                                                  |   |   |   |   |   |   |   |   |
|              Accounts receivable                                                                     |   |   | (39,994 | ) |   |   | (16,800 | ) |
|              Inventories                                                                             |   |   | (31,181 | ) |   |   | 16,868 |   |
|              Prepaid and other                                                                       |   |   | (4,216 | ) |   |   | (4,488 | ) |
|              Other long-term assets                                                                  |   |   | 1,881 |   |   |   | 619 |   |
|              Accounts payable                                                                        |   |   | (5,532 | ) |   |   | 5,881 |   |
|              Accrued expenses                                                                        |   |   | 6,032 |   |   |   | 3,832 |   |
|              Income taxes payable                                                                    |   |   | (3,581 | ) |   |   | (3,552 | ) |
|              Other liabilities and other                                                             |   |   | (6,044 | ) |   |   | 362 |   |
|                    Net cash (used in) provided by operating activities |   |   | (59,172 | ) |   |   | 14,876 |   |
| Cash flows from investing activities:                                                                                                                                 |   |   |   |   |   |   |   |   |
|     Purchases of property, plant and equipment, net of disposals                                                                                  |   |   | (6,645 | ) |   |   | (4,080 | ) |
|     Purchases of short-term investments                                                                                                           |   |   | (5,000 | ) |   |   | - |   |
|     Proceeds from short-term investments                                                                                                          |   |   | 10,000 |   |   |   | - |   |
|     Purchases of long-term investments                                                                                                            |   |   | - |   |   |   | (390 | ) |
|     Proceeds from sale of long-term investments                                                                                                   |   |   | 2,237 |   |   |   | 2,110 |   |
|     Proceeds from sale of assets, net of costs                                                                                                    |   |   | 21 |   |   |   | 3,939 |   |
|     Cash settlement of net investment hedges                                                                                                      |   |   | - |   |   |   | 6,563 |   |
|                    Net cash provided by investing activities           |   |   | 613 |   |   |   | 8,142 |   |
| Cash flows from financing activities:                                                                                                                                 |   |   |   |   |   |   |   |   |
|     Purchases of treasury stock                                                                                                                   |   |   | (20,558 | ) |   |   | (540 | ) |
|     Borrowings on long-term debt                                                                                                                  |   |   | 840 |   |   |   | - |   |
|     Repayments on long-term debt                                                                                                                  |   |   | (407 | ) |   |   | (37,657 | ) |
|     Payments on capital lease obligations                                                                                                         |   |   | (80 | ) |   |   | (170 | ) |
|     Dividends paid                                                                                                                                |   |   | (9,710 | ) |   |   | (892 | ) |
|     Distributions to noncontrolling interest                                                                                                      |   |   | (109 | ) |   |   | (161 | ) |
|                    Net cash used in financing activities               |   |   | (30,024 | ) |   |   | (39,420 | ) |
| Effect of exchange rate changes on cash                                                                                                                               |   |   | (1,844 | ) |   |   | (1,366 | ) |
|                    Net decrease in cash and cash equivalents           |   |   | (90,427 | ) |   |   | (17,768 | ) |
| Cash and cash equivalents at beginning of period                                                                                                                      |   |   | 207,394 |   |   |   | 146,424 |   |
| Cash and cash equivalents at end of period                                                                                                                            |   | $ | 116,967 |   |   | $ | 128,656 |   |
|                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of these financial statements.                                                                                            |   |

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(Unaudited)

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| (In thousands)                        |   | Lease Obligation |   |
|---------------------------------------|--------|------------------|--------|
| Balance at January 31, 2010           |   | $                | 1,327  |   |
| Change in estimate during fiscal 2011 |   |             | 71     |   |
| Payments made in fiscal 2011          |   |             | (596   | ) |
| Balance at October 31, 2010           |   | $                | 802    |   |

|                                                                                                                                                                                                                                                                                                                                                                                                       |   | October 31, 2010 |   |   | January 31, 2010 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|--------|--------|------------------|--------|
| (In thousands)                                                                                                                                                                                                                                                                                                                                                                                             |   | Cost Basis 1     |   |   | Fair Value       |   |   | Net unrealized gain (loss) in AOCI |   |   | Cost Basis 1 |   |   | Fair Value |   |   | Net unrealized gain (loss) in AOCI |   |
| Equity securities                                                                                                                                                                                                                                                                                                                                                                                          |   | $                | 14,620 |   |             | $      | 14,614 |   |   | $ | (6 | ) |   | $ | 16,103 |   |   | $ | 15,680 |   |   | $ | (423 | ) |
| Certificates of deposit                                                                                                                                                                                                                                                                                                                                                                                    |   |             | 2,065  |   |             |   | 2,065 |   |   |   | - |   |   |   | 7,413 |   |   |   | 7,413 |   |   |   | - |   |
|    Total available for sale investments                                                                                                                                                                                                                                                                                                                                                     |   | $                | 16,685 |   |             | $      | 16,679 |   |   | $ | (6 | ) |   | $ | 23,516 |   |   | $ | 23,093 |   |   | $ | (423 | ) |
| Equity method investment in LLC 2                                                                                                                                                                                                                                                                                                                                                                          |   |             |   |   |             |   | 460 |   |   |   |   |   |   |   |   |   |   |   | 979 |   |   |   |   |   |
|    Total investments                                                                                                                                                                                                                                                                                                                                                                        |   |             |   |   |             | $      | 17,139 |   |   |   |   |   |   |   |   |   |   | $ | 24,072 |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                       |   |             |   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1) The cost basis represents the actual amount paid or the basis assumed following a permanent impairment of that asset. The equity securities consist of $10.0 million for ARS and $4.6 million  for preferred stock as of October 31, 2010. The basis for the preferred stock was their fair value as of February 1, 2009, the date that they were reclassified from trading to available for sale. |   |
| 2) The equity method investment is reported at cost, adjusted by the Company's proportionate share of investee's earnings or loss. This may not be equal to the investment's fair market value. The Company recorded an impairment charge of $0.5 million for the nine months ended October 31, 2010.                                                                                                      |   |

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| (In thousands)          |   | Three months ended October 31, |   |   | Nine months ended October 31, |   |
|-------------------------|--------|--------------------------------|--------|--------|-------------------------------|--------|
|                    |   | 2010                           |   |   | 2009                          |   |   | 2010 |   |   | 2009 |   |
| Net proceeds            |   | $                              | 141    |   |                          | $      | 359 |   |   | $ | 1,889 |   |   | $ | 973 |   |
| Realized gains (losses) |   | $                              | 10     |   |                          | $      | (12 | ) |   | $ | 406 |   |   | $ | (15 | ) |

|   |   |
|--------|--------|

| (In thousands)  |   | October 31, 2010 |    |   | January 31, 2010 |   |
|-----------------|--------|------------------|---------|--------|------------------|--------|
| Raw materials   |   | $                | 8,171   |   |             | $      | 8,482 |   |
| Work in process |   |             | 478     |   |             |   | - |   |
| Finished goods  |   |             | 124,416 |   |             |   | 93,721 |   |
| Total           |   | $                | 133,065 |   |             | $      | 102,203 |   |

|   | As of October 31, 2010 and January 31, 2010, the inventory valuation reserves totaled $14.8 million and $14.4 million, respectively. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------|

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|                                  |   | Direct Selling Segment                      |   |   | Catalog & Internet Segment              |   |   | Total                  |   |
|---------------------------------------|--------|---------------------------------------------|--------|--------|---------------------------------------------|--------|--------|------------------------|--------|
| (In thousands)                        |   | Indefinite-lived trade names and trademarks |   |   | Indefinite-lived trade names and trademarks |   |   | Customer relationships |   |   | Indefinite-lived trade names and trademarks |   |   | Customer relationships |   |
| Other intangibles at January 31, 2010 |   | $                                           | 1,100  |   |                                        | $      | 7,850  |                   |   | $ | 3,226 |   |   | $ | 8,950 |   |   | $ |           3,226 |   |
| Amortization                          |   |                                        | -      |   |                                        |   | -      |                   |   |   | (817 | ) |   |   | - |   |   |   |     (817 | )  |
| Other intangibles at October 31, 2010 |   | $                                           | 1,100  |   |                                        | $      | 7,850  |                   |   | $ | 2,409 |   |   | $ | 8,950 |   |   | $ | 2,409 |   |

|         | • |   | Level 1 – Observable inputs – quoted prices in active markets for identical assets and liabilities;                                                                                                                                                                                                                            |
|--------------|---------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    | • |   | Level 2 – Observable inputs other than the quoted prices in active markets for identical assets and liabilities – such as quoted prices for similar instruments, quoted prices for identical or similar instruments in inactive markets, or other inputs that are observable or can be corroborated by observable market data; |
|    | • |   | Level 3 – Unobservable inputs – includes amounts derived from valuation models where one or more significant inputs are unobservable and require us to develop relevant assumptions.                                                                                                                                           |

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| (In thousands)                                                                                     |   | Balance as of October 31, 2010 |   |   | Quoted prices in active markets for identical assets (Level 1) |   |   | Significant other observable inputs (Level 2) |   |   | Significant unobservable inputs (Level 3) |   |
|----------------------------------------------------------------------------------------------------|--------|--------------------------------|--------|--------|----------------------------------------------------------------|--------|--------|-----------------------------------------------|--------|--------|-------------------------------------------|--------|
| Financial assets                                                                                   |   |                           |   |   |                                                           |   |   |                                          |   |   |                                      |   |
|   Certificates of deposit                                                                |   | $                              | 2,065  |   |                                                           | $      | -      |                                          |   | $      | 2,065                                     |   |   | $ | - |   |
|   Equity securities - auction rate securities                                            |   |                           | 9,319  |   |                                                           |   | -      |                                          |   |   | -                                         |   |   |   | 9,319 |   |
|   Equity securities - preferred stock                                                    |   |                           | 5,295  |   |                                                           |   | -      |                                          |   |   | 5,295                                     |   |   |   | - |   |
|   Foreign exchange forward contracts                                                     |   |                           | 109    |   |                                                           |   | -      |                                          |   |   | 109                                       |   |   |   | - |   |
|   Deferred compensation plan assets 1                                                    |   |                           | 912    |   |                                                           |   | 912    |                                          |   |   | -                                         |   |   |   | - |   |
|     Total                                                                      |   | $                              | 17,700 |   |                                                           | $      | 912    |                                          |   | $      | 7,469                                     |   |   | $ | 9,319 |   |
| Financial liabilities                                                                              |   |                           |   |   |                                                           |   |   |                                          |   |   |                                      |   |   |   |   |   |
|   Foreign exchange forward contracts                                                     |   | $                              | (89    | )      |                                                           | $      | -      |                                          |   | $      | (89                                       | )      |   | $ | - |   |
|  1) There is an offsetting liability for the obligation to its employees in Other liabilities |   |

| (In thousands)                                                                                                                                     |   | Significant unobservable inputs (Level 3) |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|--------|
| Fair value February 1, 2010                                                                                                                        |   | $                                         | 9,424  |   |
| Unrealized loss 1                                                                                                                                  |   |                                      | (105   | ) |
| Fair value October 31, 2010                                                                                                                        |   | $                                         | 9,319  |   |
| 1) These unrealized gains/losses on our available for sale investments are recorded as a component of accumulated other comprehensive income. |   |

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| (In thousands)                                             |   |
|------------------------------------------------------------|--------|
|                                                       |   | October 31, 2010 |   |   | January 31, 2010 |   |
| Derivatives designated as hedging instruments              |   | Prepaid and Other |   |   | Accrued Expenses |   |   | Prepaid and Other |   |   | Accrued Expenses |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Foreign exchange forward contracts in an asset position    |   | $ | 109 |   |   | $ | 40 |   |   | $ | 144 |   |   | $ | 56 |   |
| Foreign exchange forward contracts in a liability position |   |   | (89 | ) |   |   | (1,053 | ) |   |   | (56 | ) |   |   | (125 | ) |
|    Net derivatives at fair value            |   | $ | 20 |   |   | $ | (1,013 | ) |   | $ | 88 |   |   | $ | (69 | ) |

| Cash Flow Hedging Relationships    |   | Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) |   | Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) |   | Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) |   |
|------------------------------------|--------|----------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------|--------|
| (In thousands)                     |   | 2010                                                                       |   |                                                                           | 2009   |                                                                         |   |   | 2010 |   |   | 2009 |   |
|                               |   |                                                                       |   |                                                                           |   |                                                                         |   |   |   |   | Three Months Ended |   |   | Nine Months Ended |   |   | Three Months Ended |   |   | Nine Months Ended |   |
| Foreign exchange forward contracts |   | $                                                                          | (1,087 | )                                                                              |   | $                                                                            | (878   | ) | Cost of goods sold |   | $ | (74 | ) |   | $ | 337 |   |   | $ | (868 | ) |   | $ | (842 | ) |

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|                                                                                                                         |   | Three months ended October 31, |   |   | Nine months ended October 31, |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|--------|--------|-------------------------------|--------|
| (In thousands)                                                                                                               |   | 2010                           |   |   | 2009                          |   |   | 2010 |   |   | 2009 |   |
| Net earnings (loss) attributable to Blyth, Inc.                                                                              |   | $                              | 2,580  |   |                          | $      | (970 | ) |   | $ | 7,828 |   |   | $ | (14,097 | ) |
| Weighted average number outstanding:                                                                                         |   |                           |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Common shares                                                                                                                |   |                           | 8,229  |   |                          |   | 8,905 |   |   |   | 8,489 |   |   |   | 8,901 |   |
| Vested restricted stock units                                                                                                |   |                           | 38     |   |                          |   | 25 |   |   |   | 38 |   |   |   | 21 |   |
| Weighted average number of common shares outstanding:                                                                        |   |                           |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
|          Basic                                                                  |   |                           | 8,267  |   |                          |   | 8,930 |   |   |   | 8,527 |   |   |   | 8,922 |   |
|          Dilutive effect of stock options and non-vested restricted share units |   |                           | 46     |   |                          |   | - |   |   |   | 45 |   |   |   | - |   |
|          Diluted                                                                |   |                           | 8,313  |   |                          |   | 8,930 |   |   |   | 8,572 |   |   |   | 8,922 |   |
| Basic earnings per share                                                                                                     |   | $                              | 0.31   |   |                          | $      | (0.11 | ) |   | $ | 0.92 |   |   | $ | (1.58 | ) |
| Diluted earnings per share                                                                                                   |   | $                              | 0.31   |   |                          | $      | (0.11 | ) |   | $ | 0.91 |   |   | $ | (1.58 | ) |

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| Treasury Stock                                                      |   |   |      |   |   |   |
|---------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Changes in Treasury Stock were (In thousands, except shares):       |   | Shares |      |   | Amount |   |
| Balance at February 1, 2009                                         |   |   | 3,842,224 |   |   | $      | (398,978 | ) |
| Treasury stock purchases                                            |   |   | 15,268    |   |   |   | (540 | ) |
| Treasury stock withheld in connection with long-term incentive plan |   |   | 9,588     |   |   |   | (361 | ) |
| Balance at October 31, 2009                                         |   |   | 3,867,080 |   |   | $      | (399,879 | ) |
|                                                                |   |   |      |   |   |   |   |   |
| Balance at February 1, 2010                                         |   |   | 3,972,112 |   |   | $      | (403,329 | ) |
| Treasury stock purchases                                            |   |   | 582,032   |   |   |   | (20,558 | ) |
| Treasury stock withheld in connection with long-term incentive plan |   |   | 6,384     |   |   |   | (302 | ) |
| Balance at October 31, 2010                                         |   |   | 4,560,528 |   |   | $      | (424,189 | ) |

| Common Stock                                                    |   |   |       |   |   |   |
|-----------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Changes in Common Stock were (In thousands, except shares):     |   | Shares |       |   | Amount |   |
| Balance at February 1, 2009                                     |   |   | 12,733,209 |   |   | $      | 255 |   |
| Common stock issued in connection with long-term incentive plan |   |   | 31,715     |   |   |   | - |   |
| Balance at October 31, 2009                                     |   |   | 12,764,924 |   |   | $      | 255 |   |
|                                                            |   |   |       |   |   |   |   |   |
| Balance at February 1, 2010                                     |   |   | 12,765,919 |   |   | $      | 255 |   |
| Common stock issued in connection with long-term incentive plan |   |   | 24,006     |   |   |   | 1 |   |
| Balance at October 31, 2010                                     |   |   | 12,789,925 |   |   | $      | 256 |   |

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|                                                    |   |   |    |   |                  |   |   | Aggregate       |   |
|---------------------------------------------------------|--------|--------|---------|--------|-----------------------|--------|--------|-----------------|--------|
|                                                    |   |   |    |   | Weighted Average      |   |   | Intrinsic Value |   |
|                                                    |   | Shares |    |   | Grant Date Fair Value |   |   | (In thousands)  |   |
| Nonvested restricted stock and RSUs at January 31, 2010 |   |   | 101,238 |   |                  | $      | 45.31  |            |   |   |   |
|     Granted                         |   |   | 41,060  |   |                  |   | 46.98  |            |   |   |   |
|     Vested                          |   |   | 29,838  |   |                  |   | 66.77  |            |   |   |   |
|     Forfeited                       |   |   | 7,853   |   |                  |   | 37.29  |            |   |   |   |
| Nonvested restricted stock and RSUs at October 31, 2010 |   |   | 104,607 |   |                  |   | 40.45  |            |   | $ | 4,197 |   |
| Total restricted stock and RSUs at October 31, 2010     |   |   | 142,188 |   |                  | $      | 52.64  |            |   | $ | 5,705 |   |

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|                                            |   |   |    |   |             |   |   | Weighted Average |   |   |            |   |
|-------------------------------------------------|--------|--------|---------|--------|------------------|--------|--------|------------------|--------|--------|-----------------|--------|
|                                            |   | Option |    |   | Weighted Average |   |   | Remaining        |   |   | Aggregate       |   |
|                                            |   | Shares |    |   | Exercise Price   |   |   | Contractual Life |   |   | Intrinsic Value |   |
| Outstanding at January 31, 2010                 |   |   | 62,125  |   |             | $      | 107.68 |             |   |   | 2.42            |   |   | $ | - |   |
|     Options expired         |   |   | (12,900 | )      |             |   | 103.94 |             |   |   | -               |   |   |   | - |   |
| Outstanding and exercisable at October 31, 2010 |   |   | 49,225  |   |             | $      | 108.66 |             |   |   | 1.91            |   |   | $ | - |   |

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|                                                    |               |   | Three months ended October 31, |    |   | Nine months ended October 31, |    |
|---------------------------------------------------------|--------------------|--------|--------------------------------|---------|--------|-------------------------------|---------|
| (In thousands)                                          |               | 2010   |                           |    | 2009   |                          |    | 2010 |   |   | 2009 |   |
| Net sales                                               |               |   |                           |    |   |                          |    |   |   |   |   |   |
| Direct Selling                                          |               | $      | 117,198                        |    |   | $                             | 131,118 |   |   | $ | 367,299 |   |   | $ | 402,969 |   |
| Multi-channel Group:                                    |               |   |                           |    |   |                          |    |   |   |   |   |   |   |   |   |   |
|    Catalog & Internet                |               |   | 35,087                         |    |   |                          | 38,678  |   |   |   | 102,573 |   |   |   | 108,004 |   |
|    Wholesale                             |               |   | 63,187                         |    |   |                          | 51,782  |   |   |   | 127,781 |   |   |   | 124,683 |   |
| Subtotal Multi-channel Group                            |               |   |                           | 98,274  |   |                          |    | 90,460 |   |   |   | 230,354 |   |   |   | 232,687 |   |
|         Total   |               | $      | 215,472                        |    |   | $                             | 221,578 |   |   | $ | 597,653 |   |   | $ | 635,656 |   |
| Operating profit (loss)                                 |               |   |                           |    |   |                          |    |   |   |   |   |   |   |   |   |   |
| Direct Selling                                          |               | $      | 428                            |    |   | $                             | 1,370   |   |   | $ | 18,785 |   |   | $ | 4,530 |   |
| Multi-channel Group:                                    |               |   |                           |    |   |                          |    |   |   |   |   |   |   |   |   |   |
|    Catalog & Internet                |               |   | 658                            |    |   |                          | (1,139  | ) |   |   | (2,764 | ) |   |   | (5,760 | ) |
|    Wholesale                             |               |   | 4,654                          |    |   |                          | 2,754   |   |   |   | 916 |   |   |   | (4,646 | ) |
| Subtotal Multi-channel Group                            |               |   | 5,312                          |    |   |                          | 1,615   |   |   |   | (1,848 | ) |   |   | (10,406 | ) |
|                                                    |               |   |                           | 5,740   |   |                          |    | 2,985 |   |   |   | 16,937 |   |   |   | (5,876 | ) |
|        Other expense |               |   | (1,708                         | )       |   |                          | (3,362  | ) |   |   | (5,282 | ) |   |   | (6,029 | ) |
| Earnings (loss) before income taxes                     |               |   | $                              | 4,032   |   |                          | $       | (377 | ) |   | $ | 11,655 |   |   | $ | (11,905 | ) |
|                                                    |               |   |                           |    |   |                          |    |   |   |   |   |   |   |   |   |   |   |
|                                                    |               |   | October 31, 2010               |    |   | January 31, 2010              |    |   |   |   |   |   |   |   |   |
| Identifiable assets                                     |               |   |                           |    |   |                          |    |   |   |   |   |   |   |   |   |   |   |
|   Direct Selling                                   |               |   | $                              | 222,145 |   |                          | $       | 205,615 |   |   |   |   |   |   |   |   |   |
|   Multi-channel Group:                             |               |   |                           |    |   |                          |    |   |   |   |   |   |   |   |   |   |   |
|    Catalog & Internet                     |     |   |                           | 66,092  |   |                          |    | 58,040 |   |   |   |   |   |   |   |   |   |
|    Wholesale                                  |          |   |                           | 112,423 |   |                          |    | 81,928 |   |   |   |   |   |   |   |   |   |
| Subtotal Multi-channel Group                            |               |   |                           | 178,515 |   |                          |    | 139,968 |   |   |   |   |   |   |   |   |   |
|    Unallocated Corporate                 |               |   |                           | 90,952  |   |                          |    | 177,410 |   |   |   |   |   |   |   |   |   |
|  Total                                             |               |   | $                              | 491,612 |   |                          | $       | 522,993 |   |   |   |   |   |   |   |   |   |

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MANAGEMENT'S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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|                                         |   | U.S. Dollar     |   |   | Average       |   |   | Unrealized  |   |
|----------------------------------------------|--------|-----------------|--------|--------|---------------|--------|--------|-------------|--------|
| (In thousands, except average contract rate) |   | Notional Amount |   |   | Contract Rate |   |   | Gain (Loss) |   |
| Canadian Dollar                              |   | $               | 800    |   |          |   | 0.99   |        |   | $ | 7 |   |
| Euro                                         |   |            | 16,175 |   |          |   | 1.29   |        |   |   | (950 | ) |
|                                         |   | $               | 16,975 |   |          |   |   |        |   | $ | (943 | ) |

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Item 4. CONTROLS AND PROCEDURES

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Item 1.  Legal Proceedings

Item 1A. Risk Factors

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Item 2.   Unregistered Sales of Equity Securities and Use of Proceeds

| Period                                       |   | (a) Total Number of Shares Purchased2 |   |   | (b) Average Price Paid per Share |   |   | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |   |   | (d) Maximum of Shares that May Yet Be Purchased Under the Plans or Programs |   |
|----------------------------------------------|--------|---------------------------------------|--------|--------|----------------------------------|--------|--------|--------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------|--------|
| August 1, 2010 – August 31, 2010       |   |                                  | -      |   |                             | $      | -      |                                                                                 |   |   | -                                                                           |   |   |   | 1,182,398 |   |
| September 1, 2010 – September 30, 2010 |   |                                  | -      |   |                             |   | -      |                                                                                 |   |   | -                                                                           |   |   |   | 1,182,398 |   |
| October 1, 2010 – October 31, 2010     |   |                                  | -      |   |                             |   | -      |                                                                                 |   |   | -                                                                           |   |   |   | 1,182,398 |   |
| Total                                        |   |                                  | -      |   |                             | $      | -      |                                                                                 |   |   | -                                                                           |   |   |   | 1,182,398 |   |

Item 3.  Defaults upon Senior Securities

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Item 4.  Removed and Reserved

Item 5.  Other Information

Item 6.  Exhibits

|   | 31.1 | Certification of Chairman and Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification of Vice President and Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | 32.1 | Certification of Chairman and Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------|------|------------------------------------------------------------------------------------------------------------------|

|   | 32.2 | Certification of Vice President and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------|------|------------------------------------------------------------------------------------------------------------------------|

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SIGNATURES

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