After announcing that quarterly profit fell, hurt by disappointing wholesale sales of its scented candles, higher spending on promotions and increased freight and wax costs, Yankee Candle Co. Inc. announced it has hired Lehman Brothers to explore options including a sale. As part of the announcement, the South Deerfield, Mass. company also cut its full-year earnings forecast. Yankee Candle said net income for the second quarter ended July 1 was $4.8 million, or 12 cents per share, compared with $8.5 million, or 19 cents per share, a year ago. Sales rose 7% to $116.3 million. Retail sales rose 18% to $59.1 million. But wholesale sales fell 3% to $57.2 million. No word on who might bid, but Bed Bath & Beyond, which sells Yankee Candles at its stores, may take a look. After all, the Union, N.J.-based houseware retailer is quite acquisitive having purchased beauty supply retailer Harmons and New England-based discount home-decor chain Christmas Tree Shops, which despite the name is open year-round. Of course, the price tag, which likely will exceed $1 billion, could be too rich for Bed Bath & Beyond meaning the candlemaker could find itself back in the portfolio of a private equity firm. In 1998, Forstmann Little bought Yankee Candle, which went public in 1999, 30 years after its founding. Expect some of the bidders from last year's Linens n' Things auction to take a look. Those included Apollo Management, which won the auction for Linens, Bain Capital, and Ron Burkle's Yucaipa Co. —Matthew Wurtzel
See story from the Boston Business Journal
See story from MarketWatch
See story about Christmas Tree Shops from The Deal
See profile of Linens N' Things auction from Auction Block
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