Clifton, NJ, June 10--Linens 'n Things has updated its second quarter 2005 earnings outlook to a loss in the range of $0.11 to $0.15 per share on a fully diluted basis, from the previous outlook of earnings of $0.03 to $0.09 per fully diluted share.
Comparable net sales for the second quarter ending July 2, 2005 are expected to decline in the mid-to-high single digit range.
"We are disappointed in our second quarter performance," commented Norman Axelrod, chairman and chief executive officer. "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.
"However, we are encouraged by the response to the new product introductions to date and believe that our Back-to-School assortments are well positioned. We are also excited about the upcoming launch of the Nate Berkus Collection offered exclusively at Linens 'n Things. 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."
"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," commented William Giles, executive vice president and chief financial officer. "Despite these quarterly results, our inventory remains healthy and our balance sheet is strong, leaving us well-positioned to pursue the business improvements we have discussed."
The company will report its second quarter results on July 20th and will host a conference call at 9:00 a.m. ET on the same day.
