LNT Predicts Second Quarter Loss
By Staff -- Home Textiles Today, 6/13/2005 12:00:00 AM
Clifton, N.J. —
Linens 'n Things shifted its outlook for the second quarter from black to red, warning Wall Street to expect a loss of 11 to 15 cents per share.
Previously, the company had expected to post earnings between 3 and 9 cents per share. Now, LNT expects comp net sales for the second quarter to decline in the mid to high single-digit range.
“We are disappointed in our second quarter performance,” stated Norman Axelrod, chairman and CEO. “Although we had expected to experience some weakness in traffic during the first half of fiscal 2005, the magnitude and timing of product transitions resulted in a greater impact on guest traffic than we had initially anticipated. … Going forward, we will continue to evaluate our marketing program and stay focused on bringing in newer and fresher merchandise assortments that we believe our guests will respond to positively.”
Looking ahead, Axelrod said the company believes its assortments for the back-to-school season are on target and expects a boost from the upcoming launch of the Nate Berkus Collection. He also said the consumer response to new product introductions has been encouraging.
William Giles, executive vice president and chief financial officer, added, “As we move forward with our transition process, it is also probable that we will continue to experience shifts in business flow affecting near term performance.”
The company will report its second quarter results on July 20.
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