Clifton, NJ, July 14--Home decor retailer Linens 'n Things Inc. cut its second-quarter profit forecast, mainly hurt by a decline in store traffic in May.
Linens shares fell by about 6 percent to $25.72 on INET electronic brokerage system from $27.36 at its Big Board close.
The chain of 473 stores selling home textiles, housewares and home accessories said it now expects earnings for the quarter ended July 3 of a penny to 2 cents a share, down from its previous outlook of 8 cents to 9 cents a share.
Analysts on average forecast 8 cents a share, according to Reuters Estimates.
Excluding costs related to certain considerations received from vendors, the Clifton, New Jersey-based company said it expects profit of 10 cents to 11 cents a share.
Net sales rose about 11 percent to $578.7 million.
For the full year, Linens said it expects to earn $1.56 to $1.66 a share, which compares with an analysts' average forecast of $1.71 a share, according to Reuters Estimates.
Linens also said 2004 sales were currently being targeted to grow by between 11 percent and 14 percent.
In addition, it said sales from stores open at least a year -- a key measure of retailing performance known as same-store sales -- were likely to reflect an increase in the low- to mid- single digit range, on a percentage basis, this year.
Linens, which operates more than 470 stores in the United States and in Canada, is scheduled to report its second-quarter earnings on July 21.
