LNT lowers forecast, Wall Street lowers stock

CLIFTON, N.J. -- 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.&p>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.&p>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.&p>Analysts and investors responded by beating up the stock the day after the news came out, and in mid-day trading today, the retailer's stock was trading down 8.1 percent, or $1.90 a share, to $21.60 from $23.50 yesterday, 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.&p>Norman Axelrod, chairman and CEO, commented, "Although the third quarter began healthy, our overall performance became softer as the quarter progressed, primarily attributable to a decline in guest traffic as well as the hurricanes that negatively impacted our stores in the Southeast."

Home & Textiles Today Staff | News & Commentary

 Home Textiles Today is the market-leading brand covering the home and textiles markets, offering a comprehensive package of print and online products. Home & Textiles Today provides industry news, product trends and introductions, exclusive industry research, consumer data, store operations solutions, trade show news and much more.

Featured Video

  • Live From New York: Fashion Comes Across the Pond

    Camera Icon More Videos

Subscribe to
Home & Textiles Today eDaily
Receive the news you need to know about the trends in the industry delivered right to your inbox.

CURRENT ISSUE

HTT Cover October 2017

See the October 2017 issue of Home & Textiles Today. In this issue, we look at the Top 25 Online Retailers.  H&TT's exclusive annual ranking of the biggest online sellers of home textiles finds that while pure play etailers continue to fly, bricks & clicks are digging into omnichannel. See details!