Yankee Candle Q3 Down, CFO Retires
By Staff -- Gifts & Decorative Accessories, 11/12/2009 9:05:00 AM
South Deerfield, MA – Yankee Holding Corp. and The Yankee Candle Co. reported sales of of $168.7 million
from continuing operations for the third quarter ended October 3, a 4.2 percent decrease from the prior year quarter. Sales in the wholesale business decreased 10.5 percent to $92.8 million versus the prior year quarter, primarily because of the loss of Linens 'n Things as a customer since its 2008 bankruptcy, continued weak traffic, particularly in the gift channel; and the absence of the sales from Yankee’s third quarter 2008 test with Pier 1. The company incurred a net loss of $0.7 million for the third quarter compared to net income of $6.7 million for the third quarter of 2008. Income from continuing operations was $1.3 million for the third quarter compared to $8.1 million for the third quarter of 2008.
Yankee Candle reached an agreement in the third quarter to sell certain assets related to the Aroma Naturals business. The sale was completed after the end of the third quarter.
"While the economic and retail climate continued to be quite challenging during the past quarter, we believe that conditions appeared to be stabilizing somewhat as the quarter progressed," said Harlan Kent, Yankee Candle CEO. "We will continue to be cautious in our planning and assumptions for the very important fourth quarter," Kent continued, "We will also continue our strong focus on cost, productivity and working capital management, all of which we expect will allow us to further strengthen our cash and net debt positions at year end."
Bruce L. Hartman, Yankee Candle’s executive vice president, chief administrative officer and CFO, will retire after the end of the current fiscal year “for personal reasons”, according to Kent. Hartman joined Yankee in January 2008.Yankee anticipates that Hartman will continue to serve fully in his current role through the end of the company's fiscal year and the closing of the annual financial statements. “I would now like to turn my focus to community outreach, philanthropic endeavors and spending more time with my family.” Hartman said in a statement.
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