LNT sales slide 21.1% in 2Q

-- Home Textiles Today, 8/12/2008 1:50:00 PM

Clifton, N.J. – Linens ’n Things reported a 21.1% sales decrease for the second quarter ended June 28, with net sales ringing in at $468.1 million. That did not include $35.9 million in liquidation sales related to closing of 120 stores.

Comps for the quarter fell 18.3%.

For the first half of the fiscal year, net sales fell 11.2% to $1.035 billion, again excluding liquidation sales. Comps declined 11.8%.

In the wake of its Chapter 11 bankruptcy filing in May, Linens has delayed filing its full second quarter results with the Securities and Exchange Commission as it reviews its assets. The company plans to finalize its quarterly statement “as soon as reasonably practicable,” the company said.

LNT said it ended the quarter with an asset-based revolver balance of $200.9 million (excluding outstanding letters of credit totaling $63.3 million), cash on hand of $42.7 million and excess availability under its revolving credit facility of $176.7 million.

The $63.3 million in outstanding letters of credit does not reflect the letter of credit issued in July as part of LNT’s Enhanced Trade Credit Program, which was approved on July 10. At the close of business on August 10th, LNT said it had excess availability under its revolving credit facility of $74.2 million, which has been reduced by the $75.0 million letter of credit issued in support of its Enhanced Trade Credit Program.

During the second quarter, LNT opened two stores and closed 120 stores as compared with opening seven stores and closing zero stores during the second quarter of 2007. Store square footage decreased 19.1% to 15.5 million by June 28.