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Yankee Candle Q3 Wholesale Up

Same-Store Sales Down

By Staff -- Gifts and Dec, 11/6/2008 3:06:00 PM

South Deerfield, MA — The Yankee Candle Company Inc. and its parent company Yankee Holding Corp. saw modest improvement in its financial results for the third quarter ended September 27.

Total revenue for the quarter was $181.1 million, a 3 percent increase from the prior year quarter, primarily due to increased sales in the company's wholesale business and new retail stores. This was offset in part by comparable store sales in its retail business, which fell 8 percent. Retail sales were $76.2 million, a decrease of $1.1 million from the third quarter of 2007. Wholesale sales were $104.9 million in the third quarter, an increase of 6.4 percent compared to the prior year quarter, due to the initial rollout of a new customer in the National account channel plus increased sales in European operations.

This helped minimize the effect of Linens ‘n Things second quarter bankruptcy, Yankee said in a statement. However the company has not been spared any further collateral damage from the economy: during the quarter the administrative agent of Yankee’s revolving credit facility, Lehman Commercial Paper Inc., declared bankruptcy. Lehman’s share of the total revolving credit facility was 12 percent or $15 million. If Yankee can’t find substitute funding, its credit would drop from $125 million to $110 million, of which about $90 million was outstanding at the end of the quarter.

Craig Rydin, chairman and CEO, said in a statement, "We are pleased by our performance in the third quarter, particularly given the challenging macroeconomic headwinds we faced during the quarter. […] We understand that we are competing in an unprecedented consumer-challenged environment. […] This consumer mindset is likely to result in a challenging holiday season for consumer-facing companies including Yankee Candle."

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What do expect from these clowns. Yankee is selling everybody and
anybody. The quality of the product is not what it used to be, and the
consumer is tired of it's product mix. It is BORING!! Nothing new or
exciting. The category is stagnant. The current management can not
come up with a winner, their only hope to increase their revenue is to
open Walmart and Target.

fred Schwartz - 2008-11-07 17:32:00 EST

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