The plan called for closing 17 under performing stores. That caused a pre-tax charge of $5.5 million, including $2.4 million related to lease terminations during fourth quarter. Seven of the 17 units closed by Feb. 15 this year, and the remaining 10 are expected to close before the end of this quarter.

The company also opened its second flagship store in Williamsburg, VA on Nov. 20, 2005. Patterned after its 90,000-sf flagship here that includes entertainment, demonstrations and dining, the Williamsburg location has an aggregate of 42,000 sf. During a Feb. 15 conference call, Craig Rydin, chairman and CEO, said the store "has been very well received and significantly exceeded its sales plan in the fourth quarter."

The locally based manufacturer, wholesaler and retailer of scented candles made revenue gains in both its retail and wholesale segments. While fourth quarter data for the wholesale segment showed increases in all areas, the retail component experienced a 3% drop among the 335 stores that had been open for more than a year when combined with direct sales via catalogs and the internet, and a 4% decline when direct sales to consumers are excluded.

Total fourth-quarter retail sales reached $144.5 million, up 7% over the same quarter year ago, and consumer direct sales rose 18% versus the comparable quarter of 2004. Wholesale sales reached $92.4 million in fourth quarter 2005, up 10% over the same quarter the previous year.

Overall gross profits for the final quarter of 2005 were $140.9 million, up 5% compared with the same quarter in 2004. Income from operations for the most recent quarter, including the restructuring charge, declined 7% to $73.3 million. Excluding the restructuring charge, the dip was slight, $78.8 million versus $79 million for the same quarter of 2004.

"Our gross profit and income from operations were affected primarily by higher energy costs that increased our wax and freight costs, as well as by higher production costs incurred as we worked around wax allocations, and to a lesser extent by the promotional environment this past holiday season," Rydin said.

The company currently wholesales to a network of approximately 16,200 stores in North America and 2,200 in Europe through a distribution center in Bristol, England. It operates approximately 385 company-owned stores in 42 US states.

Shares of YCC ended trading Feb. 15 on the NYSE at $27.68 a share, down nearly 2.5% for the day. The 52-week high of $33.95 a share was reached on July 11, 2005, and the 52-week low, $21.20 a share, occurred on Oct. 27, 2005.