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USA:Linens ''n Things 26th week net sales up 1.1% to $1,144.3mn |
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2005-7-22
Home textiles retailers Linens ''n Things Inc announced the total net sales decreased approximately 0.9 percent to $573.3 million for the second quarter ended July 2, 2005, down from $578.7 million for the same period last year.
Comparable net sales for the second quarter of 2005 declined 6.8 percent. Net loss for the second quarter ended July 2, 2005 was approximately $5.9 million or $0.13 per share on a fully diluted basis.
"On June 10th, they updated their second quarter guidance and they reported results in line with that guidance," commented Norman Axelrod, Chairman and Chief Executive Officer. "Traffic remained weak throughout the second quarter, impacted by the magnitude and timing of the unusually high amount of product transitions they were undergoing."
"Looking to the rest of the year, their Back-to-School assortments are well positioned and they are also excited about the upcoming launch of the Nate Berkus Collection offered exclusively at Linens ''n Things, which presents us with an opportunity to generate excitement in their stores around an important new updated brand for their company."
Net sales increased 1.1 percent to $1,144.3 million for the twenty-six week period ended July 2, 2005, up from $1,131.5 million for the same period last year. Comparable net sales for the twenty-six week period ended July 2, 2005 decreased approximately 6.1 percent.
Net loss for the twenty-six week period ended July 2, 2005 was approximately $10.0 million or $0.22 per share on a fully diluted basis. For the same period last year, the Company had a net loss of $1.0 million or $0.02 per fully diluted share.
During the second quarter, the Company opened seventeen new stores, increasing its total square footage to 17.3 million as compared with opening twelve stores during the same period last year. The Company currently expects to open approximately 50 new stores in the United States and Canada in 2005, further expanding its presence as a leading retailer of home furnishings.
2005 Business Outlook
This outlook is based on current expectations and includes "forward looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. The Company can give no assurances that such expectations will prove correct.
"Based on the changes they are making and continued volatility in performance, it has been increasingly difficult to forecast financial targets," noted William Giles, Executive Vice President and Chief Financial Officer. "Therefore, today they are providing estimates for the back half of the year 2005."
For the back half of 2005, sales are expected to grow approximately 6 percent to 8 percent. Fully diluted earnings per share for the back half of the year are currently targeted to be in the range of $1.25 to $1.50. Comparable net sales are expected to be negative in the third quarter and positive in the fourth quarter.
Capital expenditures are expected to be approximately $125 million for the full year.
Founded in 1975, New York based Linens ''n Things Inc is one of the leading, national large-format retailers of home textiles, housewares and decorative home accessories. They operate over 400 stores in 45 states and four Canadian provinces. Company also offers a broad selection of high quality, brand name home furnishings merchandise at exceptional everyday values, provide superior guest service, and maintain low operating costs.
Linens ''n Things, with 2004 sales of $2.7 billion are one of the leading, national large format retailers of home textiles, housewares and home accessories. As of July 2, 2005, the Company was operating 516 stores in 45 states and five provinces across the United States and Canada.
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