Yankee Candle Posts Record First Quarter Results

The Yankee Candle Company, Inc., South Deerfield, MA, announced total sales for the first quarter ended April 3, 2004 were up 10% to $106.5 million. Yankee opened 14 new retail stores during the quarter, totaling 300 stores in the U.S. Operating profit for the first quarter rose 14% to $18.1 million, from $15.8 million in the prior year quarter. Net income increased 16% to $10.5 million.

“We achieved the high end of our total sales and earnings per share guidance; and leveraged the 10% total sales growth to increase gross profit dollars and rate by 12% and 90 basis points respectively, and operating profit dollars and rate by 14% and 60 basis points respectively,” said Craig W. Rydin, Yankee’s chairman and chief executive officer.

Executives said inventory growth exceeded sales growth and the company’s original plan due to advanced build-up of raw materials and finished goods for the new YC candle line. Inventory projections should not alter for the last three quarters of fiscal 2004, according to executives. During the first quarter, the company also purchased 806,100 shares of its Common Stock for $22.8 million.

For the full year the company expects sales to grow approximately 10-12%.