Yankee Candle’s Sales Jump 12%

The Yankee Candle Company, Inc., South Deerfield, MA, today reported third quarter sales rose 12% to $84.9 million. Wholesale sales including European operations were $44.3 million, an 11% increase over the year ago quarter. Retail sales were $40.6 million, a 13% increase over the fiscal 2000 third quarter. Comparable sales in the 139 retail stores that have been open more than one year and mailorder hub increased 1% and retail comparable store sales decreased 3% in the quarter. Yankee opened 25 new retail stores during the third quarter and ended the quarter with 182 stores in 39 states.

Net income for the third quarter rose more than 20% to $8.5 million.

“Overall, we are pleased with our third quarter operating and financial results. We achieved our targets for total sales growth and earnings per share, even though these results were negatively impacted by the tragic events of September 11th and the disrupted consumer environment that followed,” said Craig Rydin, Yankee’s chief executive officer. “We are particularly pleased with the strong 11% growth in wholesale sales. We believe the third quarter wholesale results are an important barometer of our wholesale customer confidence in the Yankee Candle brand and our product range and quality, as we proceed into the important holiday selling season.”

Mr. Rydin noted that although retail sales increased 13%, on top of very strong 47% growth in the fiscal 2000 third quarter, sales were below our targeted objective.

“The events of September 11th had significant negative impact on customer traffic in both mall and non-mall locations,” he said. “This was most evident in our comparable store base, where sales were up through the first two months of the quarter, but declined 3% for the full quarter.”

For the first nine months of 2001, rose 13% to $222.5 million. Wholesale sales, including European operations, were $113.0 million, a 3% increase over the first nine months of 2000. Retail sales were $109.5 million, a 26% increase over the first nine months of 2000. Comparable store sales in the 139 stores that have been open more than one year and mailorder hub increased 8% for the first nine months of 2001. Retail comparable store sales increased 2%.

Net income for the nine months, however, fell sharply to $9.7 million from $15.9 million, due to a one-time restructuring charge.