Yankee Candle Posts Big Sales Gain

The Yankee Candle Company Inc., South Deerfield, MA, announced sales for the second quarter ended June 29 were a record $81.3 million, a 31% increase. Wholesale sales including European operations were up 43% to $40.2 million. Retail sales were $41.1 million, a 20% increase over the year-ago quarter. Yankee opened 16 new retail stores and entered one new state, Iowa, during the second quarter and ended the quarter with 218 stores in 40 states.

Executives said net income for the fiscal 2002 second quarter increased an astounding 312% to $5.9 million, from $1.4 million for the prior year quarter. Operating profit for the fiscal 2002 second quarter increased 103% to $10.7 million.

“We are pleased to report very strong second quarter financial results to our stockholders, employees and the public in general, particularly in light of today’s difficult market conditions,” said Craig W. Rydin, Yankee’s president and chief executive officer. “Our financial results exceeded the upwardly revised guidance we provided on June 6th. More importantly, they evidence continued progress in our efforts to further enhance the Yankee Candle brand and show that our business model focused on multichannel growth and vertical integration has the ability to generate outstanding results even in a difficult marketplace.”

For the first six months of 2002, sales were $169.5 million, a 23% increase over the first six months of 2001. Wholesale sales, including European operations, were $86.3 million, a 26% increase over the first six months of 2001. Retail sales were $83.2 million, a 21% increase over the first six months of 2001. Net income, for the six months ended June 29, increased 118% to $13.4 million. Operating profit for the first six months of 2002 increased 50% to $24.4 million, executives said.

For the third quarter, the company expects 29-31% retail sales growth and 11-12% wholesale sales growth, while for the fourth quarter, the company expects 22-23% retail sales growth and 11-12% wholesale sales growth.