The Yankee Candle Co. Inc. posted a et loss of $9.3 million for the second quarter, compared with a net loss of $16.7 million in the prior year.
The direct marketer and retailer reported revenue of $127.5 million for the quarter ended June 28, a 4.5% decrease from $133.4 million last year.
The South Deerfield, MA company attributed these results to decreased traffic in its gift and home specialty channels and decreased comparable store sales in its retail business, offset in part by revenue generated in new stores and increased revenue in its European operations.
In addition, as a result of the recent bankruptcy filing by Linens ‘N Things, a wholesale customer of the company, Yankee recorded a bad debt provision in the amount of $4.5 million relating to Linens’ pre-petition accounts receivable, according to the firm.
Like other consumer-facing companies, our business continues to be negatively impacted by the very challenging macro-economic and retail environments,” said CEO Craig Rydin, in a statement. “Energy and commodity inflation likewise continue to challenge our profits and losses. While we remain focused on driving revenue and further leveraging our strong brand, we are also proactively taking steps to control costs and optimize our cash flow performance.”
