Yankee Candle Cuts Loss in Q2
SOUTH DEERFIELD, Mass.-Increased sales from its three operating segments helped Yankee Candle reduce its second-quarter net loss to $4.9 million, compared to the $13.5 million net loss reported in its second quarter of last year.
Overall net sales in the quarter, which ended on June 29, were up 7.1 percent to $155.7 million. Net sales in Yankee Candle's retail segment rose 6.1 percent overall and 5.2 percent on a same-store basis. The international segment's sales jumped 19 percent. Sales in the wholesale segment rose 2.4 percent.
Harlan Kent, Yankee Candle's CEO, said, "Our strategic investments continue to gain traction and resulted in solid top-line growth across our businesses in the second quarter. Our omnichannel business model allows us to capitalize on shopping trends wherever our guest chooses to shop."
Kent noted that the retail segment marked its eighth quarter in a row of positive same-store results. In the wholesale division, Kent said growth was limited by tight open-to-buy conditions and inventory management from the company's customers.
On the cost side, Yankee Candle's gross margin fell 219 basis points to 53.8 percent. Selling, general and administrative expenses rose 7.9 percent in dollars and 34 basis points as a percentage of sales, to 49.3 percent.
"We believe we are well positioned as we enter the important fall and holiday seasons to continue this sales momentum while focusing on converting sales to optimize cash generation," Kent said.