Yankee Candle Reduces Loss in First Quarter
May 10, 2012,
SOUTH DEERFIELD, Mass.-Yankee Candle Co. reported a net loss of $3.5 million in its fiscal first quarter ending on March 31, compared to a net loss of $5.3 million in its first quarter of 2011.
The bottom line received a boost from a net sales gain of 7.6 percent, which pushed sales to $155.1 million. Harlan Kent, Yankee Candle's CEO, said the company enjoyed "solid revenue growth" from all of its businesses. Ken cited sales increases in the company's consumer-direct, fundraising, wholesale and international sectors.
Gross margin dropped 96 basis points to finish the quarter at 54 percent. Selling, general and administrative expenses edged up 1 percent in dollars but were reduced 304 basis points as a percentage of sales, to 46.7 percent.
Kent said Yankee Candle is focusing on maintaining the momentum from its business into the second quarter, which is usually the lowest-volume quarter of the company's fiscal year. "We will also continue to drive supply-chain productivity, tightly manage our cost structure and work to optimize our cash flow and working capital as we prepare for the higher-volume second half of the year," he said.