Yankee Candle mulls sale
July 31, 2006-- Home Accents Today,
Yankee Candle Company announced it is retaining Lehman Brothers to assist the company in an analysis and consideration of strategic alternatives to enhance shareholder value, including a potential sale of the company.
The announcement followed the company's report of second quarter earnings. Income from operations in second quarter decreased 28% to $11.5 million, down from last year's second quarter income of $16 million.
Decreasing profits due to soft gift store sales, and higher wax and shipping costs driven up by the price of petroleum led to the decision, announced the same day the company said it would acquire California-based Illuminations brand for $22 million.
The Massachusetts-based candlemaker says it remains focused to conducting business as usual and executing its "second half plan," but will disclose no further developments until its board of directors has made a formal decision.
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