You might think Yankee Candle
With names like Meadow Mist and Lily of the Valley, the company is catering to female shoppers. And rightly so. If it were up to men, we'd gladly live with that weird smell that creeps out from the unrecognizable food in the back of the fridge every time the door is opened.
However, I have a few suggestions for how the company may be able to add to its long list of fragrances, while also luring a few more men into its stores. Think food. I'm not talking about the fruit and baked scents it offers. I'm thinking more along the lines of a nice pot of chili, or a slow-cooked pasta sauce with fresh herbs and garlic. Just something to think about.
Anyway, Yankee Candle announced first-quarter results and seems to have recovered nicely from the previous quarter's waxing. Net income increased 3% to $10.8 million, or $0.28 per share. Its revenue continues to climb, up 12% to $119.3 million. Its same-store sales were up a respectable 4%, which is a good sign of strength. Finally, its inventories decreased by 5%, which indicates its products are selling well.
Looking ahead, the company sees continued growth, both near-term and longer-term. It expects the second quarter to smoke, with expected earnings growth of 18% to 19%. For the year, it raised its earnings forecast to $1.93-$1.95 per share, which would represent growth of 12.9% to 14%.
Despite the recent and predicted strength, the stock is being burned -- down nearly 4% -- because it missed estimates by a penny. With a dominant brand and impressive results on top of its raised outlook, it might be wise to overlook the penny miss and take advantage of the sudden sale. And perhaps a nice pizza scent could really help Yankee Candle ensure that it tops estimates in the future.
For another whiff, see "Yankee Candle Gets Waxed."
Fool contributor Mike Cianciolo welcomes feedback and doesn't own shares of Yankee Candle.