Yankee Candle Posts 2002 Results

The Yankee Candle Company Inc. reported record sales, operating profit, net income and EPS for the fourth quarter and full year. Total sales for the fourth quarter were $176.3 million, a 12% increase over the year ago quarter. Wholesale sales were $65.5 million, a 19% increase over the year ago quarter. Retail sales were $110.9 million, an 8.5% increase over the fiscal 2001 fourth quarter. Comparable sales in the 192 retail stores that have been open more than one year and mailorder hub decreased 5% and retail comparable store sales decreased 6% in the fourth quarter. Yankee opened three new retail stores during the fourth quarter and ended the quarter with 239 stores in 42 states.

Net income for the fiscal 2002 fourth quarter increased 17% to $39.2 million, or $0.72 per common share on a basic and diluted basis, from $33.6 million, or $0.63 per common share on a basic basis and $0.62 per common share on a diluted basis for the prior year quarter. Operating profit for the fiscal 2002 fourth quarter increased 15% to $65.7 million, from $57.4 million for the prior year quarter.

“We are very pleased to report record operating and financial results for the 2002 fourth quarter and fiscal year. In the very challenging fourth quarter we relied on Yankee’s brand strength, breadth of product offering, marketing and merchandising initiatives, supply chain efficiency and the efforts and enthusiasm of our employees to drive these record results,” said Craig W. Rydin, Yankee’s chairman and chief executive officer.

“In particular, the power of the Yankee brand enabled us to achieve these results without engaging in the deep discounting activities that were so prevalent in the retail marketplace. We also continued to make significant progress in strengthening our balance sheet. Since the end of the third quarter we paid down $50 million of debt, increased cash by $33.7 million and reduced inventory by $15.8 million,” he continued.

Total sales for fiscal 2002 were $444.8 million, a 17% increase over fiscal 2001. Wholesale sales were $204.9 million, a 22% increase over fiscal 2001. Retail sales were $239.9 million, a 13% increase over fiscal 2001. Comparable store sales in the 192 stores that have been open more than one year and mailorder hub decreased 4% for fiscal 2002. Retail comparable store sales decreased 6%.

Net income for fiscal 2002 increased 48% to $64.0 million, or $1.19 per common share on a basic basis and $1.17 per common share on a diluted basis, from $43.3 million, or $0.81 per common share on a basic basis and $0.79 per common share on a diluted basis for fiscal 2001.