Linens' Q3 Profit Off by 90%

CLIFTON, NJ-Linens ‘n Things’ total net sales decreased by 3.8% to $629.3 million from $654.2 million a year earlier for Q3 ended October 1, 2005, according to figures released yesterday by the chain. And same-store sales declined by 10.2% for the period. Earnings, meanwhile, plunged from Q3 2004′s $17.1 million, or 38 cents a share, to just $1 million, or about two cents a share, a decline of about 94%.

“On September 22, we updated our outlook for the third quarter, and today we reported results in line with that update,” Norman Axelrod, the company’s chairman and CEO said at yesterday’s earnings webcast. “We are obviously disappointed with our third-quarter performance.

“We experienced significant traffic declines throughout the quarter, as the initiatives we had undertaken to emphasize fashion and better price points in our merchandise assortment resulted in weaker value perception,” Axelrod told analysts yesterday. “Looking at the rest of the year, we believe we have taken appropriate steps to ensure that our value message is clear and consistent in our stores and in our marketing.