07.25.01
The Yankee Candle Company, Inc. today announced financial results for the second quarter ended June 30, 2001. Total sales for the second quarter were $62.2 million, a 7% increase over the year ago quarter. Wholesale sales including European operations were $28.1 million, an 11% decline from the year ago quarter. Retail sales were $34.1 million, a 28% increase over the fiscal 2000 second quarter. Comparable sales in the 126 retail stores that have been open more than one year and mailorder hub increased 11% and retail comparable store sales increased 3% in the quarter. Yankee opened three new retail stores during the second quarter and ended the quarter with 157 stores in 36 states. Net income for the fiscal 2001 second quarter was $1.4 million, or $0.03 per common share on a basic and diluted basis, compared to $3.0 million, or $0.06 per common share on a basic and diluted basis for the prior year quarter. Operating profit for the fiscal 2001 second quarter was $5.3 million, compared to $9.1 million for the prior year quarter.
"Second quarter results were highlighted by strong retail sales growth on both an absolute and comparable store basis," said Craig Rydin, Yankee's chief executive officer. "The 28% increase in total retail sales on top of a 62% increase in the second quarter of 2000, continues to affirm Yankee's brand strength with the consumer, even in the difficult current retail environment."
"Obviously, we are disappointed that wholesale sales for the second quarter were below the prior year quarter, particularly so when contrasted with our retail growth. Our wholesale customers have been cautious in their purchasing due to concerns with both the general economic environment and their total investment in inventory. However, we remain cautiously optimistic as we move from the second quarter, which has historically been the lowest volume sales quarter for both us and our wholesale customers, to the important second half selling season for several reasons. We may be able to recover some of the second quarter wholesale sales decline to the extent our customers have deferred purchases to the second half of the year. Beyond this, we believe we have the opportunity to recover the second quarter earnings shortfall during the remainder of 2001 through a combination of new product development, merchandising initiatives, new distribution channels and lower interest expense from working capital management initiatives; and achieve our earnings per share objective of $1.01 for the full year."
For the first six months of 2001, sales were $137.6 million, a 13% increase over the first six months of 2000. Wholesale sales, including European operations, were $68.7 million, a 2% decline from the first six months of 2000. Retail sales were $68.9 million, a 34% increase over the first six months of 2000. Comparable store sales in the 126 stores that have been open more than one year and mailorder hub increased 12% for the first six months of 2001. Retail comparable store sales increased 5%.
For the six months ended June 30, 2001, net income before restructuring charge was $6.1 million, or $0.11 per common share on a basic and diluted basis. After the one-time restructuring charge, the Company reported net income of $1.2 million, or $0.02 per common share on a basic and diluted basis. Net income for the first six months of 2000 was $8.8 million, or $0.17 per common share on a basic basis and $0.16 per common share on a diluted basis.
"Second quarter results were highlighted by strong retail sales growth on both an absolute and comparable store basis," said Craig Rydin, Yankee's chief executive officer. "The 28% increase in total retail sales on top of a 62% increase in the second quarter of 2000, continues to affirm Yankee's brand strength with the consumer, even in the difficult current retail environment."
"Obviously, we are disappointed that wholesale sales for the second quarter were below the prior year quarter, particularly so when contrasted with our retail growth. Our wholesale customers have been cautious in their purchasing due to concerns with both the general economic environment and their total investment in inventory. However, we remain cautiously optimistic as we move from the second quarter, which has historically been the lowest volume sales quarter for both us and our wholesale customers, to the important second half selling season for several reasons. We may be able to recover some of the second quarter wholesale sales decline to the extent our customers have deferred purchases to the second half of the year. Beyond this, we believe we have the opportunity to recover the second quarter earnings shortfall during the remainder of 2001 through a combination of new product development, merchandising initiatives, new distribution channels and lower interest expense from working capital management initiatives; and achieve our earnings per share objective of $1.01 for the full year."
For the first six months of 2001, sales were $137.6 million, a 13% increase over the first six months of 2000. Wholesale sales, including European operations, were $68.7 million, a 2% decline from the first six months of 2000. Retail sales were $68.9 million, a 34% increase over the first six months of 2000. Comparable store sales in the 126 stores that have been open more than one year and mailorder hub increased 12% for the first six months of 2001. Retail comparable store sales increased 5%.
For the six months ended June 30, 2001, net income before restructuring charge was $6.1 million, or $0.11 per common share on a basic and diluted basis. After the one-time restructuring charge, the Company reported net income of $1.2 million, or $0.02 per common share on a basic and diluted basis. Net income for the first six months of 2000 was $8.8 million, or $0.17 per common share on a basic basis and $0.16 per common share on a diluted basis.