Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Home on the range where the buffalo roam -- Ignore unavailable to you. Want to Upgrade?

To: freeus who wrote (5251)	1/3/2002 12:40:22 PM
From: jhg_in_kc	Read Replies (1) \| Respond to of 13815

here's an oddball, an "armadillo" recommened by Dick Young.. Yankee Candle Company (NYSE: YCC) has set out to redefine and reinvent the customer's experience, just as Hallmark and Harley, Starbucks and Amazon.com did before. It's a real sleeper stock that didn't go public until 1999, in spite of its beginning in 1969. My wife, Debbie, and I often ride by Yankee Candle's operation in Deerfield, Massachusetts, on our H-D trips, and frequently stop for lunch -- that is, if we can find a parking spot in the football-field-size parking lots. Yankee's flagship store attracts an estimated 2.5 million visitors annually, including 1,000 tour buses. It's the world's largest candle store and the second-largest tourist attraction in Massachusetts. The company was started in 1969 when Mike Kittredge melted some crayons to make a candle for his mother's Christmas present. Since then, the company has grown into America's best-known candle brand with gross sales of $339 million annually. Since 1984, this terrific little company has produced compounded revenue growth of 35% per year. That's a rate of growth about five times the economy's nominal rate of growth. In 2000 alone, retail sales increased by 42%. Sales per selling square foot are two to three times the sales productivity of most retailers. Unlike many retailers, Yankee's retail stores are profitable in their first year of operation. Yankee's catalog and Internet business still represent only a small percentage of total revenues. In 2000, its mail-order business grew by 13%. Both businesses offer huge potential. With a high percentage of repeat customers and a strong brand name, Yankee's products are well-suited for catalog and Internet sales. This company set out to fulfill a basic need in a simple way, which is exactly what makes it a great Armadillo. Its financials aren't hidden behind complex statements intended to cover poorly performing earnings, and its stock price is certainly benefiting. In fact, Yankee Candle shares are up over 50% so far this year when most stocks have been lucky to hold steady.