By Staff -- Home Textiles Today, 10/18/2004 12:00:00 AM
LNT Lowers Forecast, Stock Drops
Hoisting a yellow flag and bracing Wall Street for an earnings disappointment, Linens 'n Things warned that third-quarter profits will come in beneath its previous forecast, hampered by slower traffic, lower same-store sales, weaker margins and the impact of recent hurricanes.
The superstore retailer said it now expects profits to come in at 37 to 38 cents a share, about 16 to 24 percent below an earlier forecast of 44 to 50 cents a share.
Sales during the third quarter increased 8.5 percent, to $654.2 million, the retailer said, but the crucial gauge of same-store sales declined 0.5 percent.
Analysts and investors responded by beating up the stock the day after the news came out, and in mid-day trading on Oct. 14, the retailer's stock was trading down 8.1 percent, or $1.90 a share, to $21.60 from $23.50 the day before, in unusually heavy trading. By noon, more than 1.9 million shares had traded hands, more than three times the average daily volume of 606,318 shares.
Mizrahi Headed for Home at Target
Target recently announced it will launch the Isaac Mizrahi brand into home next spring, an expansion of the co-branded apparel association the designer and the retailer debuted in 2003. The collection will include bedding, bath, decorative accessories, lighting, furniture, tabletop, stationery and pet accessories. It is due to arrive in stores in March.
Hecht's/Strawbridge Promotes Kantor
The May Department Stores Company has promoted Jeffrey Kantor to president and CEO of the Hecht's/Strawbridge's division, located in Washington, D.C.
Kantor succeeds Frank Guzzetta on Nov. 1. Guzzetta is joining Marshall Field's Nov. 1 and will become president and CEO of Marshall Field's on Jan. 1. John Harper continues as chairman of Hecht's/Strawbridge's.
Kantor became senior vice president, general merchandise manager in 1997 for men's, young men's, and boys, and also assumed responsibility for cosmetics in 2000. Earlier this year, he began overseeing cosmetics, accessories, dresses, suits, intimate apparel, and hosiery at the Filene's/Kaufmann's division.
Saks Opens New Proffitt's
Saks Incorporated will open a 120,000-square-foot Proffitt's store in Colonial Pinnacle at Turkey Creek, a new mall development in Knoxville, Tenn. The center and Proffitt's store are expected to open in April 2006.
The location increases Proffitt's presence in its home state of Tennessee. Proffitt's currently operates 12 stores throughout East Tennessee, including four in metropolitan Knoxville. Proffitt's currently operates a total of 25 stores, with other locations in Georgia, Kentucky, North Carolina, South Carolina, Virginia, and West Virginia.
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