Clifton, NJ, October 14--Linens 'n Things Inc. said its quarterly profit would fall below its previous forecast on slow shopper traffic through its stores and the impact of hurricanes.
The company said it expected earnings per share in a range of $0.37 to $0.38 for the third quarter ended Oct. 2, down from its previous estimate of $0.44 to $0.50. The company forecast earnings per share of $0.42 to $0.43 excluding the impact of an accounting change, down from its earlier forecast of $0.49 to $0.55.
Net sales rose about 8.5 percent to $654.2 million from $602.8 million in the third quarter, the company said. Sales at stores open for at least a year fell 0.5 percent.
"Although the third quarter began healthy," chairman and chief executive Norman Axelrod said, "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."
The retail environment is expected to remain sluggish in the fourth quarter but the company said it boosted its marketing to spur sales.
Analysts were expecting the company's third-quarter earnings per share to reach a range of $0.43 to $0.52, with an average estimate of $0.46, according to Reuters Estimates.
Shares of Linens 'n Things closed up 9 cents at $23.50 on the New York Stock Exchange. The stock has risen nearly 0.5 percent since hitting a 12-month low of $22.39 in late September.
The shares hit their low mark after a Wall Street analyst said lackluster back-to-school selling season likely hurt the company's sales.
