In its second quarter report, Yankee Holding Corporation and The Yankee Candle Company, Inc. posted a 4.5% decrease in total revenue from the prior year to $127.5 million.

According to the company, the drop was primarily driven by decreased traffic in its core gift and home specialty channels and lowered comparable store sales in its retail business, offset in part by revenue generated in new stores and increased revenue in the company's European operations. Comparable store sales in the company's retail segment, with and without its consumer direct business and excluding its Illuminations stores, fell 9% over the prior year quarter.

However, the company ended the second quarter of 2008 with a net loss of $9.3 million compared with a net loss of $16.7 million in the second quarter of 2007.